Understanding whether or not you fit the eligibility criteria for two-wheeler loans boosts the chances of quick loan approval. Here are the basic eligibility criteria to apply for two-wheeler loans in India.
The factors which decide the bike loan eligibility varies from lender to lender. However, there are a few general factors that you need to be aware of, which every lender considers.
Here are the factors that affect the two-wheeler loan eligibility
Age: The minimum age-qualified to apply for a two-wheeler loan in most banks and financial institutions are 21 years. The lender may allow you to apply if you’re below 21 years old if you have a guarantor for the loan.
Income: If you are earning a good income and working with a stable company, it gives the lender assurance that you can repay the loan on time each month. This increases your loan amount eligibility. The higher your income, the better your chances of easy loan approval. Your employment status should either be salaried or employed, with a minimum annual income of Rs 50,000 per year.
Credit score: Your credit score plays an important role in determining whether or not you’re eligible for a particular loan. To fulfill your bike loan eligibility, you need to have a good credit score, and it is vital to have a credit score of at least 750. The credit score is a three-digit score that measures your creditworthiness based on your credit history.
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Area of residence: The city in which you live has a say in your eligibility as well. For example, if you live in a metro city, you may have better chances of getting your loan approved easily.
The company you work for: The organization you work for has a lot to say about your employment. Working for a blue-chip company could mean that you have a stable job and a regular income. This lowers your risk level and boosts up the chances of quick loan approval.
Work experience and stability: Lenders usually require you to have at least a year’s worth of work experience. Apart from this, you should have been working with your current employer for at least 6 months.
Existing debt situation: How much debt you currently have also determined your loan eligibility. If you already have too many debts in your name, banks may hesitate to give you another loan. This is because you run the risk of not being able to repay what you borrow.
Two wheeler loan eligibility top lenders
|Lender||Age-limit||Minimal income||work experience|
|State Bank of India||21-65 years||Rs 12500 per month||At least 1 year|
|Bank of India||up to 65 years||At the bank's discretion||-|
|HDFC Bank||21 years to 65 years||Rs 10,000 per month||At least 1 year|
|Union Bank of India||18 years to 60 years||As determined by the bank||As determined by the bank|
|Indian Bank||21 years||As determined by the bank||At least 3year|
|Punjab National Bank||18 years to 70 years||Rs 10,000 per month||As determined by the bank|
|Bank of Baroda||21 years to 65 years||As determined by the bank||As determined by the bank|
|Uco Bank||21 years to 70 years||Rs 8000 per month||As determined by the bank|