Buying a new or old two-wheeler requires a lot of finance. The basic pricing of the bikes starts from INR 40,000 to INR 50,000. And if you are planning to buy a sporty bike, you need to spend more money.
Right from a simple moped to a trendy sports bike, the price can go up to the price of a luxury car! So, everybody can’t afford it. Here is where the two wheeler loan comes into play.
Two wheeler loans help individuals to own a personal vehicle with easy repayment options. The loan can be paid off easily with the help of equated monthly installment.
The whole process to get a two-wheeler loan approved is pretty easy. Let’s get into the details about the eligibility criteria for getting the two wheeler loan approved and the documents required for it.
Eligibility Criteria for Two Wheeler Loan
Financial institutions do not provide two-wheeler loans for everyone. It is approved only for those individuals who have the capacity to repay. So, here are some common criteria required for one to get the two-wheeler loan approval:
Age: Age plays a crucial role for the approval of two-wheeler loan as individuals above 18 years can only apply for it.
Income Potential: To ensure repayment of the loan, banks always check the repayment capacity of the individual. Self-employed and low salaried employees must have income above the qualified limit to get the two-wheeler loan approval.
Employment Stability: An individual’s employment stability is also checked before approving the loan. Borrowers who have been earning actively since a long time are eligible for the loan.
Domiciliary Status: Loans are provided easily to the Indian residents compared to NRIs. So, Indian citizens can get loan approval faster as compared to the NRIs.
Credit Score: This feature comes into play for borrowers who have availed credit facilities in the past. This shows the repayment capacity of the borrowers and hence it is given high importance in the loan approval process.
Documents Required for Two-Wheeler Loan
If an individual satisfies the eligibility criteria mentioned above, then he or she can carry the documents mentioned below for applying for a two-wheeler loan.
Identity Proof: An individual can carry any of the identity proofs mentioned below:
- Driving License
- Aadhaar Card
- Voter’s ID Card
- PAN Card
Residential Address or the Address Proof: Financial institutions require two kinds of residential proofs. One is the permanent address proof and the other is the current address proof. Single address proof can be submitted if the permanent and current address is the same.
Employment Proof: To show that the individual has the ability to repay the loan, he or she should submit the salary slips, Form 16, bank statements etc.
Photographs: An individual must submit their passport size photograph, which is used in the loan application form.
Hope this article has provided a clear insight into the eligibility criteria and documents required for the two-wheeler loans.
