If you are planning to buy a bike but would not be comfortable paying the entire amount in one go, then a two wheeler loan would be the best option for you. You can carry on your regular expenses and there would not be any draining of your savings also. Pay the amount back in instalments without getting burdened by financial stress. But you have to be eligible for the loan. So, go through the lender’s requirements before you start applying. This would help you to save time during the application and quick loan processing on the lender’s part. Read on to know in detail.
The criteria of loan eligibility would differ among lenders and you can compare the same online by going through the lender’s websites. The standard requirements include:
You should be at least 18 years for applying for the loan. The upper age limit may vary among different lenders.
Address of residence
You have to reside at a specific address for at least a year from where you are applying for the motorcycle loan. Lenders require this as proof of residential stability.
Whether you are a salaried or a self-employed individual, you need to have a stable income. For salaried applicants, the criterion is a stable job for at least one year. If self-employed, you have to show the IT returns for two years. A higher-income may ensure a lower interest rate.
Lenders will check your CIBIL Score. CIBIL score is issued by the Credit Information Bureau of India Limited. The score can vary within a certain range. The bureau calculates it after reviewing your credit history, which includes your credit card payments. The higher the score, the greater is your bike loan eligibility at a low-interest rate. A low CIBIL score will increase the rate of interest on the loan.
- Contact number and KYC documents
You should have a permanent contact number and documents related to KYC, ID proof, and address proof.
If you already have an outstanding loan to your name, it will affect your eligibility. Some lenders may not issue you a loan if they find out that you have ongoing loans.
- Knowing the EMI (Equated Monthly Instalments) amount with the help of a two wheeler EMI calculator in advance would help you. With the online EMI calculator, you can find out the EMI and estimate whether you would be able to pay the amount every month.
Keep both original and photocopies of the documents ready for submission to the lender. There are certain standard requirements for documents. If you are a salaried individual, submit the following documents for bike loan:
- KYC documents like Passport, Pan Card, Aadhaar Card, etc
- Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement.
- You can submit computerized documents issued by PSU, Pvt Sector, Property, or municipal tax receipt
- Address proof in the name of your spouse or parents is accepted by lenders
- Passport size photographs
- PAN card
- Salary slips of last three months
- Salary statement for last six months
- Proof of verified signature
- Bike registration certificate
- Latest form 16
If you are self-employed, submit the following besides the KYC and id proofs as proof of income:
- Last two year’s income tax return as income proof
- Income statement for last six months
- TDS certificate and company details
Before applying for a two wheeler loan, check your eligibility for such loans. The criteria may vary between lenders and if you are well-prepared with the required documents and fulfil the conditions, the loan processing would be fast.