Getting a fresh credit line for purchasing a two-wheeler is advisable if you want to keep your savings intact amid the existing financial irregularities. Although a two-wheeler or bike loan is easy to procure, you must take care of certain aspects before applying, just to ensure seamless approval and quickest possible disbursal.
In the subsequent sections, we shall enlist every possible requirement that you need to consider before applying for a Two wheeler loan, regardless of the lender or the loan amount:
Before you move ahead with the application, you must compare and eliminate lenders to zero in on the best bike loan interest rate. Therefore, arranging quotations, guidelines, and other important loan approval fractions is the first step towards a successful application.
- Income Proof
Arranging income proof can be tricky as the requirements vary for salaried and self-employed professionals. For starters, a salaried person must account for the employment letter and the last drawn salary slips. In case you are an entrepreneur, it is necessary to keep company details, sales tax file, if applicable, and TDS certificate for improving eligibility. Income tax returns and half-yearly bank statements are common for both the domains and also qualify as income proofs.
- Credit Score
While this isn’t an actual document that needs to be made available during the application, it is the factor that comes across as an indispensable requirement. Good credit history or a decent credit score ensures that the concerned lender proposes a more affordable interest rate. Moreover, even though the financial institution checks for the CIBIL score, as an applicant, you can always refer to a free source for getting ahead of the process and ensure that your credit score is in line with the lender’s requirements.
- Clarity of Mind
Here is an abstract requirement that determines every aspect of your loan repayment, starting from EMI structuring, tenure selection, foreclosing, and more. Therefore, before you plan on applying for the loan, you need to analyze the impact of the EMIs, fuel charges, and maintenance costs on your monthly income.
- Two-Wheeler Options
As a borrower, you must keep a few two-wheeler options handy before thinking about a loan. Comparing different vehicles, based on the overheads, processing charges, and ride quality is necessary to zero in on the perfect option. Besides, you need to check whether the lender offers financial support for the particular model or not before applying.
- Identifiable documents
It goes without saying that you need to furnish an address and identify proofs for completing the approval process. Lenders conduct extensive background checks before sanctioning the loan, and this is where it becomes necessary to submit photocopies of the original documents.
- Down payment
Even if you have an average to poor credit score, you might still be eligible for a bike loan. However, in that case, you need to settle for a lesser amount, which might not match the value of your dream bike. This is why you must keep some cash handy to cover the down payment and lower your reliance on the bike loan.
- Prudent Approach
Although a loan procurement process can be initiated seamlessly if the concerned documents and resources are made available, you must follow a strict policy against over-borrowing to maintain your financial sanity.
Financial support for a two-wheeler is extremely easy to get if you have each of the following requirements handy. You must have noticed that documents alone cannot guarantee approval, and it is necessary to follow a systematic approach towards applying for furthering your eligibility.