Most people have their own reasons for why they want to buy a motorcycle. You may also have a plenty of reasons to buy an amazing two-wheeler. It may be something like you want to live your life large or you want everyone to think you are cool or adventurous. With numerous bike loans available, it is easy for you to buy a motorcycle of your choice. Nevertheless, you would want to know if you are eligible for it.
What are the factors that determine an individual’s bike loan eligibility? Most banks are extremely careful, and they approve the bike loan only after ensuring the financial stability of the borrower. Moreover, evaluating an individual’s two wheeler loan eligibility depends on certain aspects the bank considers. However, some common ones that most lenders look for bike financing are:
- Age: You should be 21 years or above. If you are between 18 and 21 years, you need a co-applicant. Your maximum age at the end of the bike loan term should be 65 years or the age at the time of retirement, whichever comes earlier.
- Income: You should be employed and draw a minimum annual salary, which differs from one bank to another bank. For those who are self-employed, the minimum annual income is again different. If you have a higher salary or income, you will be eligible for a higher amount of bike loan. However, the higher income will not guarantee a bike loan for you.
- Minimum work experience: Even though minimum work experience differs from one bank to another bank, you should have at least six months’ experience working in your present employment. In the case of entrepreneurs or self-employed individuals, they should have been running the business for a minimum period of two years to qualify for a bike loan eligibility.
- Repayment capability: Your repayment capacity is one of the important aspects a bank considers before sanctioning a bike loan. In the process, it will assess your repayment history, as well as the other loans you have now, to ensure whether you have the wherewithal to pay. For that, your bank reviews your income and figure out your debt service coverage ratio. If it is less than 1, you have a fewer chance to secure a two wheeler loan eligibility or you will get less loan amount.
- Credit score: You need to have a good credit history to be considered for a motorcycle loan. This score is a three-digit number, and it shows your creditworthiness. You can avail a bike loan at a lower rate of interest if you have a credit score of 750 and above.
- Your residence: The place where you live is also considered for bike financing. Living in a city gives you a better chance of having your loan approved than living in a countryside.
- Your employment: A bank may also consider the company you work for. This will help it know whether you have a stable job with a regular income.
Find Your 2 Wheeler Loan Eligibility Online
You can check your eligibility for the two wheeler loan online. For instance, IDFC First Bank helps plan your finance by calculating the monthly instalments using a two wheeler loan EMI calculator. Here are a few steps to check your 2 wheeler loan eligibility online.
- Fill in your mobile number, city, type of residence and date of birth
- Provide your employment and income details
- Choose the model of the bike and give an approximate price
- Confirm if you have an account with IDFC First Bank
- Click on the ‘Check eligibility’ tab
- You will get to know the loan amount you are eligible for, EMI and tenure
If you are eligible for a bike loan, then why do you wait? You can apply for the IDFC First Bank two wheeler loan online now.
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