Can I apply for a two-wheeler loan if I have a low credit score?

It is generally possible to get a two-wheeler loan even if your credit score is low or poor. However, approval chances are lower compared to those with good credit scores.

• Loan providers look at various factors in addition to your credit score, such as your income stability, job profile, past credit history, and ability to make a down payment.
• Interest rates offered will typically be higher for applicants with low credit scores, as financial institutes consider them a riskier loan.
• The loan amount sanctioned may be lower than normal. For low credit score applicants, loan providers approve only 60-75% of the vehicle's cost.
• Opt for shorter tenures, as longer loans are more likely to get rejected if you have a poor credit score.
• To maintain a positive credit profile, avoid applying for multiple loans simultaneously, as this may signal to lenders that you are overly reliant on credit. Instead, apply with one loan provider at a time.
• Having a co-applicant or guarantor with a good credit score can typically improve your chances of loan approval and better terms.
• Clear dues, use credit limits optimally, and work on improving your credit score before reapplying after a few months.
• Be prepared to explain any past defaults or delays in repayments satisfactorily when you apply.

Getting a two-wheeler loan with a low score may require some extra effort, but it is possible if other factors are strong. Improving your credit health can help you get better loan terms more easily over time.