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Indians love bikes and scooters. They help you negotiate traffic jams like a pro. Moreover, they add to your style statement. Owning a two-wheeler is thus like a dream for many.
You might not have enough savings to purchase your dream bike. A two-wheeler loan can help you realise your dreams. But, you might be worried about the bike loan interest rates. How will you get the best rates?
Let’s look at some things to consider to get the best interest rates on your bike loan.
- Maintain a Good Credit Score
Your credit score is the most crucial thing your lender will check before granting your loan. It establishes your creditworthiness. Your lender gets an assurance that you have the ability to repay the loan.
To maintain a decent credit score, you have to repay all your previous loans and dues on time.
If you have a good credit score, you will have greater bargaining power while applying for the loan. Moreover, your lender might give you a lower interest rate.
- Your Income
Your lender will check your income to understand your repayment capacity. So, having a higher monthly or annual income will put you in their good books.
You can consider starting a side hustle apart from your full time job. Make sure you disclose all your sources of income to the lender. That will increase your credibility. As a result, you will get a lower interest rate.
- Compare the Interest Rate Offered by Different Lenders
Not all lenders offer the same interest rate. You need to compare the rates offered by different lenders. That will help you get the lowest interest rate.
Do your research thoroughly before making a final decision regarding the lender. Make sure you check the additional charges apart from the interest rate. They will also add up to the cost of your loan.
- Show All Your Financial Documents
Keep all your financial documents ready. It includes your salary slips and income tax returns. If you are self-employed, make sure you furnish your proof of income.
These documents are not enough. You will also need to provide your bank statement. That will help your lender understand whether you have sufficient balance to pay the EMIs. They will also check if there is a consistency in your account balance.
Submit all your financial documents to build trust and credibility. That will help you get a better interest rate. It will also reduce your bike loan EMI.
You can use a bike loan EMI calculator to get an estimate of your EMI amount. That will help you manage your finances better.
Document Required For A Two Wheeler Loan
Before applying a two wheeler loan you have to upload your own documents to the lender –
There are two types of documents one is salary person and second one is self employed.
Salary person: ID proof, address proof, bank account statement, last 3 month salary, slip 3 month bank statement required for two wheeler loan. For self employed: ID proof ,address proof, latest income tax return, last 3 month bank statement is mandatory.
Here is the eligibility criteria for two wheeler loan – Person should be 21 years old less than or equal to 65 years at loan maturity, should have stayed in the same city for minimum 1 year stability one year of employment stability for salaried and self employed both, postpaid mobile connection.
Salaried Person:
ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
Two recent passport size photographs
Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
Last 3 month’s salary slips/ Form 16/Latest ITR
Last 3 month’s bank statement is mandatory
apply for a two wheeler loan
Self Employed:
ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
Two recent passport size photographs
Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/ Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
Latest Income Tax Return (ITR)
Last 3 month’s bank statement is mandatory
Eligibility Criteria For Two Wheeler Loan
Should be 21 years old (or 18 years with a co-applicant) at the time of application
OR
Less than or equal to 65 years at loan maturity
Should have stayed in the same city for minimum 1 year
Minimum 1 year of employment stability for Salaried & Self employed.
Postpaid mobile connection
5 Deciding Factors For Your Two Wheeler Loan Eligibility
The Bottom Line
Getting the best interest rate will make your bike loan affordable. Thus, it will not put unnecessary pressure on your finances.
Bajaj Auto Finance offers competitive rates on your two-wheeler loan. So, get your dream bike now without further delay.
Also Read:
Top Reasons Why You Should Choose A Two Wheeler Loan
Can You Apply for a Personal Loan After Bankruptcy?
