You may decide to purchase your favourite bike on loan and start preparing for the application process. One important thing that you should check during this process is your bike loan eligibility. All your efforts of organising the requirements would get wasted if the lender rejects your loan application. Lenders go through several things like your repayment capacity, background, source of income, etc. as they want to avoid risk of non-repayment. The eligibility criteria and list of documents also vary between different lenders. Read on to know about the factors that decide your eligibility for a bike loan.
To be eligible for a bike loan, generally, you have to fulfil the following requirements:
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Your age
You should be at least 18 years or maximum 65 years during the time of applying for the loan. The upper age limit may vary among different lenders.
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Your current address, contact number and KYC documents
You have to reside at a specific address for at least a year from where you are applying for the motorcycle loan. Lenders require this as proof of residential stability. You should have a permanent contact number and documents related to KYC, ID proof and address proof.
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Income
Whether you are a salaried or a self-employed individual, you need to have a stable income. For salaried applicants, you should have a stable job for at least one year. If self-employed, you have to show the IT returns for the last few years. A higher income may ensure a lower interest rate and help you get the best bike loan.
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Cibil Score
Lenders will check your CIBIL (Credit Information Bureau of India Limited) score. The score can vary within a certain range. The bureau calculates it after reviewing your credit history, that includes your credit card payments. Higher the score, greater is your chance of bike loan eligibility at a low-interest rate. A low CIBIL score will increase the rate of interest on the loan.
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Outstanding loan
If you already have an outstanding loan to your name, it will affect your eligibility. Some lenders may not approve your loan if they find out that you have ongoing loans.
Arrange for both original and photocopies of the documents for submission to the lender as proof of your declaration on the application form. There are certain standard requirements for documents.
If you are a salaried individual, submit the following documents:
- KYC documents like Passport, Pan Card, Aadhaar Card, etc
- Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement. You may submit computerised documents issued by the government
- Lenders would accept address proof in the name of your spouse or parents
- Copies of passport size photographs
- PAN card
- Salary slips of last three months
- Salary statement for last six months
- Proof of verified signature
- Bike registration certificate
- Latest form 16
If you are a self-employed individual, you may have to submit the following:
- KYC documents like Passport, Pan Card, Aadhaar Card, etc
- Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement. You may submit computerised documents issued by the government
- Lenders would accept address proof in the name of your spouse or parents
- Copies of passport size photographs
- PAN card
- Last two year’s income tax return as income proof
- Income statement for last few months
- Proof of verified signature
- Bike registration certificate
- TDS certificate and your business details
For smooth processing of the loan, check your bike loan eligibility before you apply in terms of both criteria and the documents required. This would lead to faster approval and you can buy a specific bike at the earliest.
