Two-wheeler loans eligibility

For us Indians, owning a vehicle is a necessity these days in keeping with our lifestyle. If not a four-wheeler then a two-wheeler is a must. That is why there is a huge demand for two-wheelers today. Buying one is not difficult because easy loan facilities are available. Most lenders will finance your two-wheeler but if you meet with certain conditions.

​​​​​​​Conditions are:
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1. Age

Some banks require the applicant to be minimum 21 years but others accept applicants from 18 onwards. This is because youngsters at this age are college going and many of them need a two-wheeler to commute. For most banks the maximum age for loan application is 65 years.

2. Employment status

Your employment status should be salaried or self-employed. This is an important requirement for loan sanctioning because you have to show a source of regular income.

3. Employment tenure

In order to ensure income stability, most banks want your employment tenure status to show that you have worked for at least 6-12 months. For those who apply as a student, this criterion is not required.

4. Minimum income

This condition differs from lender to lender. Generally, banks expect you to earn Rs 5,000 per month but some require that your minimum income if salaried should be Rs 84,000 per year; for self-employed it should be Rs 72,000 per year.

5. Residential status

You should have lived in your current residence for at least 12 months during the loan stage. But if you have moved to a new place and not lived there for a year then you must provide documents to prove this. The idea behind this requirement is to ensure that the applicant is stable and will not be a defaulter.

6. Phone number

Most banks will require you to have a phone at your residence or office.

7. Credit history

Your credit score should be good, around 750, for the unsecured two-wheeler loan to be granted quickly. Even those with a poor credit rating manage to get a loan but in those cases the two-wheeler is taken as a security.