Gone are the days when saving for months or years to purchase your dream bike was the norm. Thanks to the quick online applications and approvals, getting a Two-Wheeler Loan to fund your dream bike purchase is now easier than ever.
Many lending institutions offer Two-Wheeler Loans for up to 95% of the bike’s ex-showroom price, so money isn’t a barrier anymore when it’s about owning a bike you’ve always wanted to own.
That being said, you must be eligible to secure a Two-Wheeler Loan. For most Indians, clearing this mandatory eligibility is not a big deal.
Let’s learn the various Two-Wheeler Loan eligibility parameters and how to get approved for a Two-Wheeler Loan.
Eligibility Requirements for a Two-Wheeler Loan
- Maximum Loan Amount: Reputed NBFCs like Hero FinCorp offer Bike Loan interest options ranging from Rs. 10,000 to Rs. 3,50,000 for two-wheelers. This means you should be able to get a loan for any two-wheeler, from a scooter to a petrol or electric bike.
- Maximum Loan Tenure: A loan can last from 6 months to 60 months. So, you can choose a payment plan that fits your budget.
- Age Criteria: You must be at least 18 years old to be eligible.
- Monthly Income: At least Rs. 10,000 a month – this is the minimum requirement for most banks and NBFCs. This requirement ensures that borrowers have enough income to repay their EMIs.
- Down Payment: According to most lenders, you can buy your bike by paying just 5-10% of the bike’s cost as a down payment.
| Parameters | Description |
| Citizenship & Age | You should be a citizen of IndiaYou must be over 18 years of age |
| Employment Status | Both salaried and self-employed individuals can apply for this loan |
| Experience | Salaried Individuals: You should have been employed for at least one year and have at least six months of experience with your current employer.Self-Employed Individuals: You should have been in your current business for at least one year |
Documentation
The following papers are needed to apply for a Two-Wheeler Loan:
- Identity and Address Proofs: Driving license, Aadhaar card, passport (conditional), and PAN card.
- Income Proof: Income Tax Return (ITR) from the last six months, income slips, and a bank account statement from the previous six months for the income/salary account.
- Property Documents: Property Records/water/electricity bills.
Tips for Two-Wheeler Loan Approval
- Maintain a Good Credit Score
A good credit score (over 750) is key to getting a low-interest Bike Loan. It will also increase your chances of getting pre-approved for Bike Loans, meaning you will get to choose which loan is best for you. Make sure you pay your credit bills on time and utilise less than 30% credit if you own credit cards.
- Provide Accurate Information
Make sure that all the information you provide is correct and up to date. If you fail to do this, you might face delays or even rejection.
- Ensure Sufficient Income
You should ensure that you make at least Rs. 10,000 a month. If possible, try to land a higher-paying job.
Conclusion
You will have a better chance of getting a Two-Wheeler Loan eligibility if you follow these tips. Refrain from lying on your loan application; ensure you have enough income, a good credit score, and all the necessary papers.
