Bike Loan: Factors, Documents Requirement & Eligibility Criteria

Last Modified: 25-November-2022

Eligibility Criteria for Taking Two Wheeler Loan

Financial dilemmas might keep one from buying a whole new dream bike of theirs. This is where a two-wheeler loan comes to the rescue. A bike loan by Muthoot Capital helps a person to buy the bike of their dream and repay it in manageable EMIs. You can easily apply for a bike loan online from the comfort of your home.

There are a few things that you must consider before taking a two-wheeler loan for a comfortable and guaranteed experience.  You must check the bike loan eligibility online to keep your application from rejection. You can also use the calculators online to check your EMI to organize things likewise. Below are the bike loan eligibility criteria for both salaried and self-employed individuals.

What are the Eligibility Criteria?

Depending on its model, you can get up to 100% of the market price of the bike you choose to buy. Eligibility is a standard set by the finance companies, meeting which allows an individual to get the loan approved. You must check for eligibility before applying for a bike loan online to keep your application from getting rejected.

The eligibility criteria for bike loans are:

  • Age – The candidate must age between 18- 65 years while applying for the bike loan.
  • Income – For salaried individuals, the annual income must be more than or equal to 96,000. For self-employed individuals, the annual income must be more than or at least 1,20,000. The applicant must have at least a year of stable employment status.
  • Resident Status – The applicant must have at least of a year stable residence status
  • Credit Score – One of the essential eligibility points is the credit or CIBIL score of the applicant. The credit score shows creditworthiness, and a score above 750 is considered trustable on a scale of 300-900.

What are the Documents Required for a Two Wheeler Loan?

After you check your bike loan eligibility, you must collect the following documents listed below-

  • Identity Proof – For proof of your identity, you must have anyone amongst a passport, Aadhar card, Pan Card Voter ID, or driving license.
  • Income Proof – For the proof of income, you must have the latest income tax returns (ITR) if self-employed individuals and either the last three months’ salary slip, Form 16, last three months’ bank statements reflecting salary credits, or salary certificate if salaried individual.
  • Residence Proof – Proof of residence in the form of any government-issued certificate or ID.
  • Bank Statements – Last three months’ bank statements.

What are the Factors Affecting Bike Loans and How to Improve Them?

Your bike loan eligibility highly depends on the factors listed below. Know the factors and learn how to improve them to be eligible for the loan.

  • Loan Tenure – Loan tenure decides the EMI you will be required to pay. Going for a longer tenure will reduce your monthly repayment and make you eligible for the loan.
  • Source of Income – Your source of income must be above the limit set by the finance company. You can show additional sources of income to make your profile more trustworthy. There will also be no strain on your budget while you repay the loan if you calculate all your family’s income sources beforehand. You can also add a co-applicant to make your application look healthy.
  • Outstanding Loan – The last point that you must keep in mind is repayment of the overdue debts. Serve your previous commitments to be eligible for the bike loan. Overdue obligations will negatively impact your borrowing/repayment capacity, which will lead to the rejection of your application.

Check your eligibility online before you apply for a bike loan online so that you can work on improving your eligibility if needed. Muthoot Capital proposes the lowest interest rates against a bike loan and flexible repayment tenure of as long as 48 months. After checking the bike loan eligibility, you can use the calculator online to check your loan EMI.

Also, Read- Easy Steps to Calculate Your Two-Wheeler Loan EMI

With interest rates starting at just 0.99%*, two-wheeler loans allow you to comfortably get your dream bike. Remember to check the eligibility before you apply for a bike loan online. Know the document required for 2 wheeler loan, collect them beforehand, understand the bike loan eligibility factors and work to improve them to be eligible for a bike loan.

About Author
Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.
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