How does the bike loan eligibility calculator work?

Riding a motorcycle is the most satisfying feeling. It is perhaps the only motorized vehicle, which you can use to navigate through rush-hour traffic. Whether it is a geared bike or a gear less one; two-wheeler are popular in cities where the means of public transportation are sub-standard. Today, you can apply for two-wheeler loan and bring home your dream two-wheeler. But before you do so, check if you are eligible for the credit.

You can do so with a bike loan eligibility calculator. Here’s what it is and how it works.

Definition: It is an online tool that you can find on the lender portals. These calculators are designed considering the type of loan you need. So, if you wish to buy a motorcycle by taking out a loan, you need to use a two-wheeler loan eligibility calculator. As the name suggests, this calculator provides exact loan amount you are eligible for ahead of purchasing a two-wheeler. The calculator factors in your age and income among other things to determine the maximum amount you can get.

The process to use the calculator

Using the bike loan eligibility calculator is rather simple. Follow the mentioned steps –

• Comparison: The first thing you need to do is decide the lender you seek to approach for getting the credit sanctioned. This decision should be based on factors such as interest rate charged against bike loan by different lenders and flexible repayment tenures, among other things. Upon finalising a lender, you need to visit their website and find the bike loan section.

• Eligibility Calculator: Once you land in the loan section, find the tab that says, ‘check your bike loan eligibility’. It is generally the first tab you will find on all lender websites. Do not apply for a loan before checking you are eligible for it or not.

• Birthdate: Once the calculator appears on your screen, enter your date of birth. This tab is relevant because lenders generally check eligibility for two-wheeler loans based on your age. You need to be older than 21 years and up to 65 years to be eligible for the credit.

• City details: In the next tab of the calculator, fill in the details of the city and state you live in. It is essential because the road-taxes applicable for riding a bike are different in every town.

• Income: Your monthly salary also helps lenders decide 2 wheeler loan eligibility. For being eligible, you need to produce an annual income of INR 72,000 and INR 84,000, if you are a self-employed professional or a salaried individual respectively.

• Enter: Once you have entered the details, click enter to check the exact loan amount you are eligible for.

Apart from using a bike loan eligibility calculator, use a bike loan EMI calculator to understand the exact EMI you would be paying against your two-wheeler loan. Using both calculators can improve your chances of getting your loan approved instantly.