Two-Wheeler Loan Eligibility Criteria and Requirements Explained

To be eligible for a two-wheeler loan, you need to meet certain criteria. Let's dive into the key factors that lenders consider when evaluating your bike loan eligibility:

Age: 

Between 18 and 65 years old to qualify for two-wheeler loan. Ensure you fall within this age bracket before applying. Please note that this may vary across banks. For example, you need to be between 18 and 59 years to avail a two-wheeler loan (Chakra Loan) from Ujjivan SFB. 

Employment Type: 

Banks typically extend loans to both salaried individuals and self-employed individuals with a minimum work experience of one year. 

Income: 

Your monthly income plays an important role in determining your bike loan eligibility. Banks want to ensure that you have the financial capacity to repay the loan. They may have specific income criteria based on your employment type. 

Credit Score:

Your credit score reflects your creditworthiness and is one of the essential parameters considered by lenders when assessing your loan application. A higher credit score increases your chances of approval. Credit score typically ranges from 300 to 900. A credit score above 750 is considered as a good credit score.

When applying for a bike loan, you will need to gather certain documents and meet specific requirements. These may vary slightly depending on the lender, but here are the common requirements:

Identity Proof: 

Lenders may ask for identification documents such as Aadhaar Card, PAN Card, Passport, or Voter ID as proof of your identity. 

Address Proof: 

You will need to provide address proof documents like your Aadhaar Card, Passport, Voter ID, or utility bills to establish your residential address. 

Income Proof: 

Banks may require income proof to assess your repayment capacity. The acceptable documents may vary based on your employment type:

• Salaried Individuals: Salary slips, bank statements, Form 16, or income tax returns (ITR) can serve as income proof.

• Self-Employed Individuals: ITRs along with profit and loss statements or audited financial statements are typically required.

   

Photographs: 

Keep a few passport-sized photographs handy as banks usually require them for their records and application forms.

Down Payment: 

In most cases, you will be required to make a down payment towards the purchase of the two-wheeler. The down payment amount can vary based on the bank's terms and conditions and the price of the vehicle. For instance, Ujjivan SFB offers up to 95% financing on the on-road price of the vehicle subject to terms and conditions.

Point to Note: 

The eligibility criteria and other loan requirements mentioned here are general guidelines. These may vary across banks as per their terms and conditions. Contact your bank for better clarity.

Consider factors such as age, employment type, income, and credit score to determine your bike loan eligibility. Additionally, keep all the necessary documents like identity proof, address proof, income proof, and bank statements at your disposal for a seamless loan application journey. 

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