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Two-Wheeler Loan for Self-Employed: Eligibility and Tips

Disclaimer: The information mentioned herein is generic in nature. Ujjivan Small Finance Bank is not responsible for the accuracy of the information provided herein. Click 'Apply Now' to view our two-wheeler financing features & benefits.

July 13, 2025

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Two-wheeler Loans are available for both salaried and self-employed individuals. For the salaried, two-wheeler loan application process is fairly straightforward. However, for self-employed, the application process may differ based on the rules and regulations as set by the bank.

In this article, we have explained the eligibility criteria and necessary documents required for a two wheeler loan for self-employed individuals. Additionally, we have provided a few valuable loan tips that may help you increase your chances of loan approval.

Eligibility Criteria for Two-Wheeler Loan for Self-Employed

The eligibility criteria may vary across banks. We have taken the common requirements into account. You may contact your preferred bank for better clarity.

1. Age Criteria

Most banks require borrowers to be at least 18 years old to be eligible for a bike loan for self-employed. The maximum age limit usually ranges between 59 - 60. For example, Ujjivan SFB offers two-wheeler loans to individuals falling under the age bracket of 18 - 59 years.

2. Income Stability

Banks may assess your income stability to ensure that you have the means to repay the loan. As a self-employed individual, your income stability is crucial. You may be required to provide proof of income through Income Tax Returns (ITRs) or business registration documents or last 6 months' bank statements.

3. Credit Score

Your credit score reflects your creditworthiness and ability to manage debt responsibly. Banks prefer applicants with good credit scores. A good CIBIL score indicates a lower risk of default. Therefore, it's essential to maintain a healthy credit score by paying your bills and loans on time. Any score above 750 is considered a good credit score.

4. Residence Stability

Having a permanent address or a stable rental history can work in your favour when applying for a two-wheeler loan.

5. Loan Amount vs Income Ratio

Banks often have a maximum permissible ratio of the loan amount to your income. If the monthly loan instalment exceeds a certain percentage of your income, you may be deemed ineligible or offered a lower loan amount.

By understanding these eligibility criteria, you can assess if you meet the requirements before applying for a two wheeler loan for self-employed.

Tips for Securing a Two-Wheeler Loan

Let's explore a few loan tips to increase your chances of securing a two-wheeler loan.

1. Maintain Good Credit History

Having a good credit score is extremely important. A poor or below average credit score may result in your loan application getting rejected. Even if you qualify for a loan with bad credit score, the interest rates could be on the higher side. Make sure to pay all your bills and EMIs on time to maintain a healthy credit history.

2. Keep Your Financial Records Organised

As a self-employed individual, it is essential to keep your financial records well-organised. This includes maintaining proper books of accounts, filing accurate ITRs, and having updated business registration documents.

3. Show Proof of Income Stability

To improve your chances of approval, provide solid proof of income stability to the bank. This can include ITRs, bank statements, and any other relevant documents showcasing the success and stability of your business.

4. Offer a Higher Down Payment

A higher down payment can reduce the loan amount and improve your chances of approval. Banks often view a higher down payment as a sign of commitment and lower risk.

5. Seek Professional Advice

If you are unsure about the loan application process or need assistance with understanding the eligibility criteria, consider seeking professional advice from a financial advisor or consultant. They can guide you through the process and help you make an informed decision. As an alternative, you can contact the bank to understand their two-wheeler loan requirements.

Remember, securing a bike loan for self-employed individual may require some extra effort, but with proper preparation and understanding of the process, you can increase your chances of approval.

Final Thoughts

The self-employed are eligible for two-wheeler loans. However, check the eligibility criteria beforehand to avoid unpleasant surprises.

Ujjivan SFB offers Chakra Loan - a two-wheeler loan that offers up to 95% of the on-road price of the vehicle, capped at ₹2.75 lakh. Enjoy competitive interest rates and flexible repayment tenures up to 48 months.

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk. Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.in"

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FAQs

1. What documents are required for two-wheeler loan application for self-employed?

The documents required for a two-wheeler loan application as a self-employed individual include proof of identity, address proof, income proof (ITRs or business registration documents), bank statements, business registration documents, shop and establishment certificate, and GST registration certificate.

2. Can I get a two-wheeler loan without a credit score?

While having a good credit score improves your chances of loan approval, some banks may offer loans to individuals without a credit score. However, such loans may come with higher interest rates or stricter eligibility criteria.

3. What is the maximum loan amount I can get for a two-wheeler loan?

The maximum loan amount you can get for a two-wheeler loan depends on various factors such as your income, creditworthiness, and the bank's policies. It is advisable to check with different banks to find the loan amount that suits your needs. Ujjivan SFB offers financing up to 95% of the on-road price of the vehicle.

4. Can I prepay my two-wheeler loan?

Yes, most banks allow prepayment of two-wheeler loans. However, they may charge prepayment penalties or fees. It is essential to check the terms and conditions of your loan agreement before making any prepayments.

5. How long does it take for a two wheeler loan for self-employed to be approved?

The approval time for a two wheeler loan for self-employed varies from bank to bank. Generally, it takes around 2-7 working days for the loan to be processed and approved, subject to meeting all the necessary requirements and document verification.

6. What happens if I default on my freelance motorcycle loan?

Defaulting on your freelance motorcycle loan can have severe consequences, including damage to your credit score and legal action by the bank. It is important to communicate with your bank if you face financial difficulties.

7. Can I use a two-wheeler loan to buy a used vehicle?

Yes, some banks offer loans for both new and used two-wheelers. However, the interest rates and eligibility criteria may differ compared to loans for new vehicles.

8. How can I pay the EMI for the two-wheeler loan?

In case of most banks, if your credit score is low, the rate of interest could be higher. Consult with the bank for more details.

9. If I have a low credit score, will the interest rate be high?

In case of most banks, if your credit score is low, the rate of interest could be higher. Consult with the bank for more details.

Two-Wheeler Loan for Self-Employed: Eligibility and Tips