All you need to know about two-wheeler loan eligibility and its calculator

Want to buy the motorcycle that you always wanted? Then motorcycle loans are the best solution. Both banks and NBFCs offer them. However, if you want to get the best deal in the market, you must fulfil the bike loan eligibility. Every lender has different criteria in place. You will find them on the lender’s portal. You must be aware of the requirements beforehand as it helps you to gauge if you qualify for the loan or no.

Some of the basic ones are:

• Minimum and maximum age: 21 and 65 years
• Employment status: Salaried and independent professionals
• Income requirement: INR 50,000 per annum
• Work experience: 6 months to 1 year in the current workplace
• Loan amount: Maximum INR 10 lakh
• Repayment tenure: Minimum 84 months
• Credit score: At least 700-900

These are general two-wheeler loan eligibility. Note, they can vary from lender to lender. A few lenders also add some conditions.

Eligibility loan calculator:

Just like you have an Bike loan EMI calculator to plan your finances with regards to the credit, similarly, you have a calculator to check not only your eligibility but also the amount you require to borrow.

Some factors that help in calculating your two-wheeler loan eligibility are –

• Minimum age to apply
• Home take away income
• Regular source of salary
• A credit score of 750 and more
• Address tenure
• Property type
• Loan-to-value ratio
• Years of service remaining
• Bike loan duration
• Monthly EMIs

You could increase your eligibility by adding a co-applicant if your case is weak.

Factors affecting eligibility:

• Age: You can apply for the credit only if you are 21 years and above. Since you are the owner of the vehicle, you must portray you have the salary to repay the same. In specific scenarios, the lender may allow you to apply if you are below 21 years.
• Income: The more salary you earn, the more you take the lender into the confidence of repaying the credit on time. It means your risk rating is low and thereby increases eligibility. Also, higher-income improves the process of loan approval.
• Credit score: Not only a bike loan but all loans require a decent credit score. The report is a history of your past repayment behaviour. Your application gets rejected if the score is low. A good credit score can also provide you with additional benefits.
• Residence area: The city you stay also speaks about your eligibility. If you hail from a metro city, there are chances of quick approval of the loan.
• Organisation reputation: Lenders emphasise on the companies that are highly rated. If you come from any of them, you have high chances of getting the loan. Sometimes, lenders look at the profession of the applicant. If you a chartered accountant, doctor, lawyer, and so forth, you may get your desired loan amount.
• Work experience: You need to have at least a year’s involvement in the current workplace. The overall experience must be two years or so.

Existing debts: Ongoing debts usually dent your credit report and could lead to rejection of the application. Banks may consider you less creditworthy. Lenders may fear you may not repay the two-wheeler loan on time. So, correct your finances before applying for one.