Full Guide to Two-Wheel Loan Eligibility Criteria
A two-wheeler is now the best vehicle to move quickly and easily on urban roads in India. While massive traffic jams continue to plague most roads in major cities, having a two-wheeler allows you to move quickly through traffic. Buying a two-wheeler can be expensive though, which is why two-wheeler loans are now a popular instrument offered by lenders.
Two-wheeler loan eligibility criteria
If you are looking for a two-wheeler loan from one of the best lenders, it is important to know the eligibility criteria for the two-wheeler loan. Knowing if you qualify for a two-wheeler loan is the first step to getting a loan from your preferred lender. Read below to learn more about two-wheeler loan eligibility. Although the eligibility criteria may differ from one lender to another, most lenders in India stick to the eligibility criteria outlined below.
Criteria for salaried candidates:
Age: Min. age of 21 at the time of application and max. age 65 to 70 at loan maturity.
Loan amount: up to 100% of the vehicle’s on-road price can be used as a loan.
Work experience: Candidates must have at least one year of work experience.
Criteria for independent candidates:
Age: Min. age of 21 when applying for the loan and max. age 65 to 70 at loan maturity.
Loan amount: The two-wheeler loan can cover up to 100% of the road cost of the vehicle.
Work Experience: Candidates should have at least one year of financial experience in the business.
Factors That Affect Two-Wheeler Loan Eligibility
Now that you know the basic eligibility criteria established by most lenders, it is important to understand the various factors that affect eligibility for a two-wheeler loan. We examine these factors below.
Age is often one of the most important determinants of whether you will qualify for a loan. Lenders generally prefer younger borrowers because they have more time to comfortably repay their loan. However, most lenders offer loans to older applicants as long as they are under the age of 65 to 70 when the loan matures.
Income is another determining factor in whether you will qualify for a two-wheeler loan of your choice. In addition to determining whether you get the loan, your income will also determine the terms of your loan, such as the EMI you must pay and the repayment term. You will be offered a higher principal amount at a lower interest rate if you earn a high income.
3. Credit score
Your credit score is important in determining your loan amount – whether it’s a two-wheeler loan or a home loan – and the interest rate. Your credit score is calculated by evaluating your income, repayment history, and other credit information, such as your income-to-debt ratio. This is often one of the first things a lender checks when you approach them for a loan. Keeping your credit score high is essential before venturing into the market in search of capital.
4. Residence area
The city you live in will also play a role in determining your eligibility for a loan. For example, residents of a metropolitan city might be able to get their two-wheeler loan approved much faster without having to deal with a lot of hassle.
The company you work for will also determine your creditworthiness for a two-wheeler loan. If you work for an established company, you’ll likely get better deals and more leeway while your loan terms are being determined.
6. Work experience and stability
Your work experience and job stability are also scrutinized when you approach a lender for a 2 wheeler loan. Job stability is determined by assessing how long you have worked at a particular job and whether you are likely to quit your job or be unemployed during the term of the loan. A lack of job stability will likely reduce your eligibility for the two-wheeler loan, as the lender may be skeptical about repaying your loan. Although you can still qualify for a two-wheeler loan, the lender will likely offer it to you at a higher interest rate.
7. Existing debt
Although this is briefly covered by your credit score, expect potential lenders to inquire specifically about any existing debt you may have. If your existing debt is high, your eligibility for a two-wheeler loan is likely to drop, as lenders may worry about your ability to repay all of your loans. It is best to reduce your total debt before approaching a lender for a 2 wheeler loan.
Having a 2-wheeler loan can help you considerably because it makes your purchase much more affordable. Paying by EMI ensures that you don’t have to drastically cut your savings to buy your favorite vehicle. However, choosing a two-wheeler loan that best suits your requirements is important.
The two-wheeled loans offered by Bajaj Markets offer several advantages, including a simple and convenient application process, attractive interest rates starting at around 8.75% per annum and a flexible repayment term of up to 3 years.