Your friend just got himself a cool superbike. And you don’t want to be left behind. You have had an eye on a bike yourself. But you are wondering if you are eligible for a Bike Loan.
What determines an individual’s Bike Loan eligibility? What are the factors that you should keep in mind?
Different banks have different yardsticks. But there are some common things that all banks consider while evaluating your eligibility for a Bike Loan.
- The price of the vehicle: The kind of two-wheeler you want and its price will to a large extent determine the amount of Bike Loan you are eligible for. Most banks offer anywhere from 70% to 90% of the bike value as a loan. You may have to shell out the rest as a down payment. HDFC Bank offers 100% finance on select models to existing account holders.
Read more on zero down payment for Two Wheeler Loans.
- Income: If you have been working for a year and have a gross salary of at least Rs 84,000 a year, you are eligible to apply for a two-wheeler loan. If you are self-employed, you must have an annual income of at least Rs 72,000. The higher your income, the greater the loan amount you are eligible for. Of course, income by itself does not guarantee you a loan.
- Repayment capacity: When you take a loan, you must repay it in equal monthly instalments. Most banks make sure that you have the wherewithal to make these monthly payments before sanctioning the loan. For example, if you are already servicing other loans, you may get a lower loan amount.
- Your age: You must be at least 21 years of age when you apply and under 65 at the end of the loan term.
- Your credit score: A credit score is a rating of your credit worthiness and is based on your credit history and repayment record. A credit score of 700 is considered par.
Banks may also look at your employment record, city of residence, length of stay at current residence etc.
How to check your Bike Loan eligibility online?
A simple way to check your eligibility is to use an online tool like the Bike Loan eligibility calculator.
- Enter your city, date of birth and type of residence
- Choose a bike model
- Enter an indicative price for the bike you want
- Enter your employment details and income
- Confirm if you have an HDFC Bank account
- Click on check eligibility
The calculator will tell you the loan amount you are eligible for, the tenure of the loan and the EMI.
If that matches your requirement, you can just proceed and apply online. It’s that simple.
Click here to apply for your HDFC Bank Two Wheeler Loan now.
* Terms & conditions apply. Two Wheeler Loan disbursal at sole discretion of HDFC Bank Ltd.
