Two-wheelers are among the preferred choices for travel in India. As of 2021, data points to an increase of 1.25 Lakhs of two-wheelers on the road, which is spread across age groups. There are several reasons for this, among which is the low cost and the fact that modern lenders have relaxed two-wheeler loan eligibility terms.

As such, getting a two-wheeler loan is easy, and you can get a motorcycle without much hassle.

Check out the two-wheeler loan eligibility criteria, if you plan to buy a bike. Meeting the specific requirements can help you avail a two-wheeler loan quickly.

Read on to know more about the requirements for quick approval of your two-wheeler loan.

Common Two-wheeler Loan Eligibility Criteria

Before availing a two-wheeler loan, you must meet the following two-wheeler loan eligibility parameters. You are eligible for a two-wheeler loan if:

• You are a minimum of 18 years of age
• You are a maximum of 65 years of age when your loan tenure ends
• You are a salaried or self-employed individual
• You are an Indian national
• You are residing in the same city for the past one year

If you are a salaried individual, some lenders will require a minimum work experience of at least one year, along with city-specific income requirements. Be sure to check the specifics before applying.

Note that if you are between 18 and 21 years old, you may require a co-applicant when availing a two-wheeler loan. However, once you meet these essential two-wheeler loan eligibility criteria, your loan is easily sanctioned.

Tips for Choosing the Right Two-wheeler Loan

Keep the documents for your two-wheeler loan handy

After checking out your two wheeler loan eligibility, it is important to know the documentation required. Keeping these documents handy can ensure hassle-free approval of your two-wheeler loan.

Proof of identity:

• PAN card
• Aadhaar card
• Voter’s ID
• Driver’s licence
• Passport
• Latest passport-size photograph

Proof of address:

• Telephone bill
• Utilities bill
• Property tax receipt
• Aadhaar card
• Rental agreement papers

Proof of income

• Salary slip for last three months
• Income Tax Returns
• Salary certificate
• Form 16
• Bank statement of the previous year

Once you meet the two-wheeler loan eligibility criteria and submit the relevant documents, your loan is disbursed quickly after verification.

Factors That Can Affect Two-wheeler Loan Eligibility

Now that you know about the basic two-wheeler loan eligibility and essential documentation, learn about the elements that can cause problems during approval. Being aware of these factors can help you avoid unnecessary two-wheeler loan rejections.

These factors affecting two-wheeler loan eligibility vary across different lenders. However, some pointers mentioned here can ease your two-wheeler loan approval process. One of the prime factors affecting two-wheeler loan eligibility is your age. Only if you are above the age of 21 can you avail a two-wheeler loan in your name.

Despite many lenders reducing the age bracket to 18 years, you require a co-applicant to avail a two-wheeler loan. This is applicable if you are between 18-21 years. Your credit score plays a crucial role in determining your two-wheeler loan eligibility.

A minimum credit score of 750 and higher is considered suitable for easy approvals, but you may get approval even if your score is slightly lower. Note that you may have to pay a higher interest rate on your two-wheeler loan. However, if you have a poor score, it is likely that your loan application will get rejected.

Your source of income also plays a key factor in determining your two-wheeler loan eligibility. To qualify, you need to have a stable source of income. The monthly income requirement varies based on the city you reside in and the lender’s terms. Moreover, if you are self-employed, the minimum income requirement may be higher.  

Tips to Improve your Two-Wheeler Loan Eligibility

In general, meeting the two-wheeler loan eligibility criteria is simple. In fact, there are many ways to improve your eligibility parameters for quick two-wheeler loan approval.

• One important tip is to boost your credit score. As your credit score is a key part of your two-wheeler loan eligibility, try helpful ways to boost your score. Make sure to pay your EMIs without delay and do not miss any payments. If you build a stable credit profile, lenders are assured of your credit worthiness.

• Opting for the appropriate two-wheeler loan tenure can also help improve your eligibility. With the right tenure, your EMIs remain affordable and manageable all through, and this can help you qualify.  

• Having a stable job provides assurance to the lender that you are a responsible borrower. With a stable job or source of income, your two-wheeler loan eligibility improves greatly as lenders can rely on you to make consistent payments.

• While you can apply for a large portion of the bike’s cost as the loan amount, it is better to make a hefty down payment. This lowers the loan amount you would need and gives surety to the lender of your repayment capacity.

• Before you get a two-wheeler loan, try clearing all pending loans. Maintain a low debt-to-income ratio that helps calculate the percentage of your monthly income used for repaying existing debts. If this ratio is low, your chances of getting the loan are better. So, it is ideal to clear off your existing debts so that you meet the two-wheeler loan eligibility criteria.

• You can also try disclosing other sources of income. This includes passive streams such as investments or rental properties.

Make sure you note these simple tips that can help improve your two-wheeler loan eligibility. Knowing these can help you avail the loan instantly. Whether you are a student or an adult, the minimal documentation process and intuitive features offered by some lenders make it easy for you to get a two-wheeler loan.

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