Two Wheeler Loan Eligibility

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Two Wheeler Loan Eligibility

Two Wheeler Loan Eligibility Introduction

Since most middle-class borrowers cannot afford to make a lump-sum payment due to financial constraints, a two-wheeler loan allows them to pay monthly EMIs comfortably.

It’s important to review your two-wheeler loan eligibility once you’ve decided to apply for one. Lenders are highly vigilant and will only approve a loan after thoroughly examining the borrower’s repayment ability. Since there has been a sudden increase in the number of defaulters over time, thorough background checks are performed before the loan is disbursed.

To ensure that your loan application is not denied, you must provide all necessary documentation and declare your exact source of income to receive prompt approval, and you should be aware of the two-wheeler loan eligibility guide.

Two Wheeler Loan Eligibility Criteria

The following table can be used as a Two wheeler loan eligibility checker:

Minimum and Maximum Age minimum age – 21 Yrs., maximum age – 65 Yrs.

Note: However, many banks require a minimum age of 18 years

Loan Amount Up to ₹ 10 Lakh. Some banks give maximum loan up to ₹ 50 Lakh

Note: Loan amount depends upon the value of the two wheelers and the EMI you can pay

Net Monthly Income Min. ₹ 18,000 per month
Employment Type for both Salaried and Self Employed applicants, the Interest rates are typically in the range of 7.75% to 29.00% per annum
Minimum Work Experience 1 year of total work experience
Business tenure should of 5 years & ITR required for at least 2 years (For the Self Employed)
CIBIL Score for two wheeler Loan 600 & more credit history

Note: Most banks avoid giving loans if you have a low credit score, or even if they do, they charge a higher interest rate

Two Wheeler Loan Eligibility Top Banks 

The table below contains a list of all of the top banks two wheeler loan eligibility:

Lender Age limit Minimum income Work experience
State Bank of India   21 years to 65 years Rs.12,500 per month At least 1 year
Bank of India   21 years to 65 years
HDFC Bank   21 years to 65 years Rs.6,000 per month At least 1 year
Union Bank of India   18 years to 70 years As determined by the bank As determined by the bank
Indian Bank  21 years As determined by the bank At least 3 years
Punjab National Bank  18 years to 60 years Rs.10,000 per month As determined by the bank
Bank of Baroda  18 years to 70 years As determined by the bank As determined by the bank
Syndicate Bank  21 years Rs.4,167 per month As determined by the bank
Canara Bank  21 years Rs.20,833 per month As determined by the bank
UCO Bank  21 years to 60 years Rs.8,000 per month As determined by the bank

Documents required for Two Wheeler Loan Two Wheeler Loan Eligibility

When you apply for the loan, you will be asked to request a few papers. Any of these are evidence of meeting a number of the eligibility requirements.

Depending on the lender, different documents can be needed. However, the following are some of the necessary general documents required for a two-wheeler loan:

  • Application for a loan that has been completed and signed
  • Documents proving your identity:
  • PAN Biked, voter’s ID, passport, and driver’s license are all acceptable forms of identification.
  • Utility bills, passports, and rental agreements are all acceptable forms of proof of address.
  • Photographs as proof of age
  • Salary slips, bank statements, income tax returns, and a salary certificate are all examples of proof of income.

Factors that affect Two Wheeler Loan Eligibility  

A variety of factors influence your ability to obtain a two-wheeler loan. Although these can vary from one lender to the next, there are a few that apply to all of them.

Age: You must be 21 years old or older to apply for a scooter or bike loan. Since the Bike will be registered under your name, you must demonstrate that you can repay the loan. If you have a guarantor for the loan, the lender will allow you to apply if you are under 21 years old.

Earnings: Having higher income assures lenders that you will be able to pay back your loan on time each month. 

  • This indicates that your risk level is poor. 
  • This improves the chances of getting loan. 
  • The higher your salary, the more likely you are to be approved for loan quickly.

Credit score: Your credit score is crucial factor in deciding whether or not you are eligible for loan. 

  • If you have bad credit history, lenders are likely to refuse your loan application. 
  • Getting good credit (a score of over 750) on the other hand will get you better loan terms.

Residence: Your eligibility is also influenced by the city in which you live. 

If you live in metropolis, for example, you could have better chance of having your loan accepted quickly.

The business you work for: The company you work for has lot of influence over your job. 

  • Working for reputable company can indicate that you have steady job and consistent income. This reduces your risk, which is what most lenders prefer.

Job experience and consistency: Lenders usually need at least a year of work experience. Aside from that, you should have spent at least 6 months with your new employer.

Current situation of debt: Your loan eligibility is also measured by how much debt you currently have. Banks may be unable to offer you another loan if you already have so many debts on your credit report. This is due to the possibility of not being able to repay what you have borrowed.

Advantages of a Two-wheeler Loan

Since it is a long-term undertaking, a loan is a big liability. Although buying a Bike with cash has many advantages, taking out a Two-wheeler Loan has its own set of advantages. Some of the advantages of a Two-wheeler Loan are mentioned below:

  • When you don’t have enough money to buy your dream four-wheeler, a Two-wheeler Loan will help you out. With a Two-wheeler Loan, you can drive your favourite model home.
  • After putting down a large down payment on a high-end model vehicle, you can conveniently buy one with a Two-wheeler Loan.
  • If you have never borrowed before, you are unlikely to have a credit score. You are welcomed to the credit world by taking out a Two-wheeler Loan. You should start improving your credit score, which will help you get better terms on future credit.
  • A Two-wheeler Loan encourages you to skip the hassles of public transit and arrive at your office without any inconvenience.

With Dialabank, you can also check the Two-wheeler loan eligibility online.

How can you apply for a two-wheeler loan?

You should Apply For a two-wheeler loan to acquire your favourite four-wheeler after you’ve calculated your budget. You may apply online or in-person at a local bank branch or Bike dealership depending on the eligibility criteria for a two-wheeler loan.

Online: It’s quick and easy; all you have to do is go to the lender’s official website to apply for a loan. You will fill out your personal and contact information on the website, and a bank representative will contact you to walk you through the process. After you’ve chosen the vehicle you want to purchase, the lender will ask you to send the necessary paperwork for clearance. Your two-wheeler loan will be disbursed after you have been authorized and have agreed to the charges and rates.

Visiting the Branch: You can easily step into every local branch of a bank or lender where you have a checking account to open an account. You should fill out the application form and send it along with the paperwork that needs to be approved. If you have been accepted for the loan, the funds will be disbursed.

Bike Dealer: The Bike dealers that run the showroom will have a contract with a specific lender. You may apply for a loan right there in the showroom, which can speed up the process. If the loan has been accepted, you can drive your Bike home.

Manufacturers: In some situations, the manufacturers themselves provide lower-interest loans to Bike buyers. You will apply for a two-wheeler loan and buy the vehicle right there in the showroom.