If you do not have sufficient funds to purchase the bike model of your liking, or if you are planning to defer such high-value payments to a longer duration, a two wheeler loan can be the right avenue. These are dedicated financing options designed to help individuals pay for bike purchase immediately while converting the payment burden into small chunks deferred and payable in parts over a long duration known as the loan tenure.
With ample financing available and a long tenure to repay, these loans are just the right funding option one can resort to when needed. Given that they are available at short notice and do not require one to meet challenging requirements, almost anyone can avail a bike loan to fund two wheeler purchase. Nevertheless, it is quite crucial to make sure that you meet the basic eligibility requirements and know how much you can avail before applying. Further, you must also be well aware of your loan amount and tenure suitability that fits the repayment requirements into your financial capacity. So, here’s a detailed guide on how to do that.
How to Check Your Eligibility for a Two Wheeler Loan?
You need to follow 2 essential steps to check your two wheeler loan eligibility. First, you need to check if you qualify the basic criteria laid down by lending institutions in the market. Some of the common ones are outlined below.
- You should be either a salaried or a self-employed individual
- If salaried, you must qualify the age range of 23 to 58 years
- For self-employed, the age must be between 25 and 70 years
- Salaried individuals must also be employed with a public/private company. Or an MNC working for not less than 6 months, with an experience of 1 year in total
- In the case of self-employed applicants, business must be stable with a vintage of at least 1 year, and 3 years in total
- Both applicants must be residing Indian citizens with a stability of 1 year
Additionally, both should check if they hold a credit score of 700 or not. If not, they need to work up on its improvement before applying, as it is a strong mark of creditworthiness. And even though not mandatory, can be the deciding factor for loan approval.
Another way to check your eligibility for a bike loan is to use a two wheeler eligibility calculator. Below are the essential things that the calculator would require you to provide to compute. The maximum loan amount you can avail based on your borrowing profile.
- Your age
- Your income
- City of residence
- Occupational stability
- Type of occupation
- Outstanding repayments
Based on these factors, the calculator assess the risk involved with your profile. And computes a suitable loan amount that you can easily avail from the lender.
However, this calculation doesn’t indicate the loan amount you should avail as several other. The two wheeler loan eligibility is only an approximate computation. The final loan value you should actually avail based on the bike’s price depends on your overall affordability. Here’s how to calculate it.
How to Calculate Your Bike Loan Affordability?
You can easily compute the affordability of a bike loan with an EMI calculator. A financing tool that is easy to use and available for free online. The EMI calculator for bike loan requires you to provide the following values.
- Principal or the loan amount you need
- A suitable tenure for such loan, expressed in months
- The interest rate applicable on the loan
On entering these values, the calculator instantly reflects the EMIs you would need to pay based on these entries. You can change the entries made for the loan amount. And tenure to arrive at a suitable EMI that your disposable income accommodates easily.
You can also check the long-term affordability of your loan by considering the interest payable. And the total loan liability payable for the entire tenure. Once you have utilised the two financial tools to check the eligibility. And affordability of your two wheeler loan, you can apply for the advance accordingly. Look out for ways to further reduce your interest rate when applying, or even the interest liability if applied. So the final repayment that you make helps save on interest payables computed through the EMI calculator.