The best advantage of taking a bike loan is the fact that banks pay for up to 85% of the bike's price, which is enormous. Afterwards, the debt can be repaid in affordable EMIs (Equated Monthly Instalments), though choosing the right loan is itself a humongous task.
|Age||18 or 21 years to 65 years|
|Employment status||Salaried or self-employed|
|Preferred credit score||750 and above|
|Employment tenure||At least 6 months in the same job|
|Minimum income||Pretty low|
|Residential stability||Applicant should be residing in the same space to show residential stability|
|Permanent telephone number||Required|
Every bank has different criteria to check whether a borrower is eligible for a bike loan. Mentioned below is the list of requirements to qualify for a bike loan:
Employment: Either a person must be a salaried employee of a company or should be self-employed.
Age: Bank loans are offered to people who are 18 years or older. Some of the banks only accept applications from candidates who are at least 21 years of age. However, the maximum age limit to apply for the bank loan is 65 years.
Work Experience: Many banks offer bike loans to students under certain circumstances, but most of the banks give priority to people with at least one year of work experience.
Minimum Income: Every bank has set up different criteria for the minimum salary required to give a bike loan. Generally a minimum of Rs. 5000/- is the income parameter needed to be eligible for a bike loan for most of the banks.
Landline Number: Banks prefer a landline number over mobile numbers.
Residence: Some of the banks require a history of living in a house for more than a year to ensure credibility.
Credit History: A good credit score is the key to negotiations and getting an excellent deal on bike loan. Even if you don't have a clear credit history, there are chances that you may get a bike loan, but you won't be able to crack a deal on it. Sometimes, the issue of a low credit score can be covered while taking the loan because it falls under a secured loan, where the bike is the security.
Here is a list of documents that are required to apply for a bike loan. The list may be different for every bank, but generally, these are the documents that a borrower should keep ready:
1. Address proof: Any proof which justifies the claim of your current address will do the work. Some documents included in the list are a passport, driving license with the current address printed on it, voter's ID, Aadhaar card, utility bills (electricity/landline bills), or rent agreements.
2. ID Proof: Any credentials that prove your identity such as a passport, pan card, Aadhaar card, driving license, Voter's ID card.
3. Income Proof: The credentials for income proof can be in the form of salary slips of the last three months, latest Form-16, bank statements reflecting salary credits for the previous three months, and former employer's salary certificates.
4. Passport Size Photographs: Some recent passport size photographs will also be required to fill up the application form.