Availing of a two wheeler loan is one of the most convenient options for buying a bike due to several reasons. It enables you to repay via the bike EMI, which is not just comfortable, but also effective in terms of easing your financial burden. But even before the monthly instalment is ascertains, lenders establish the two wheeler loan eligibility through certain criteria. On your part, it is important to be aware of the various metrics that play a crucial role in determining whether or not you can avail of the two wheeler loan.
Age is the first criteria which lenders take into consideration while determining your eligibility for bike EMI, followed by level of income. The source of income also comes under the scanner, wherein the more stable your job is, the higher are the chances of qualifying for bike EMI. Your credit score and existing debts also matter while proving eligibility, since both are strongly reflective of your financial behaviour over the past several years.
Tips to Consider while Availing the Two-Wheeler Loan
When you avail of a two wheeler loan, there are several conditions that need to be met, one of which is the bike EMI. Lenders provide finance for purchase of the bike after having established your two wheeler loan eligibility criteria. Usually the loan caters for majority of the cost, which proves to be a big help for the buyer, who needs to pay only the remaining amount.
Bike EMI comes into play after you have selected the lender from whom you intend to avail of the loan and have also identified the brand and model. It is during this stage that you can negotiate with the lender to lower the interest rate, which in turn would translate into reduced monthly installments. Options like a pre-approved loan or timing the purchase to coincide with the festive season can accrue discounts and waivers that can ease your financial burden in the long run.
Having fixed the loan amount, the next stage involves proving eligibility to set the bike EMI. To this effect, factors that play a crucial role are –
Your age –
Without exception the applicant needs to be older than 21 years of age to apply for the two wheeler loan. Some lenders may accept an applicant who might be younger than 21 years, but it is only on the condition that there is an adult guarantor who is willing to take responsibility for the repayment of the loan.
Level of income –
How much you earn is directly proportional to your eligibility for the loan, which implies that a higher income level can enhance the probability of approval of your application. With high-income applicants, lenders feel reassure of the loan being repaid in full, and hence not only approve the application, but also lower the interest rate.
Credit score –
This metric is reflective of your financial behaviour over the past several years and is powerful enough to get your application accepted/rejectes. Lenders show their appreciation for prompt payments, no defaults, and lack of irregularities by according you a high credit score. Then they use it as the basis for proving your two wheeler loan eligibility and lowering your bike EMI.
Existing debts –
Too many debts in your name can prove to be sufficient for lender to reject the loan application, because it puts a question mark on your ability to repay the amount on time. There should be a healthy proportion between income and debt for you to be eligible for bike EMI loan and higher chances of approval.
Source of income –
Does your income accrue from a stable job at a governmental department, or do you happen to be a self-employed person whose income fluctuates every month? From the lender’s perspective, an applicant with a stable job and regular income is far more worthy of a two wheeler loan owing to the ability to repay. In sharp contrast, a self-employed applicant can prove to be a risk going ahead owing to the instability in earnings.
Where you live can matter to some lenders as they process your bike EMI loan application, wherein chances of approval are higher if you live within the particular area.
Most lenders accept the bike EMI via the electronic money transfer system, or post-dated cheques, and you are free to choose either of them. Some lenders also allow the borrower to pay the EMI in advance without levying any additional charges. Referred to as foreclosure, this facility is not mandatorily provided by lenders, and depends on how many bike EMI parts are still pending for you.
To ascertain your two wheeler loan eligibility, you can visit the Bajaj Finance website and compare the criteria with your personal financial credentials. You can also use the EMI calculator to ascertain the amount that would need to be paid every month, including the interest rate on the loan.
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