Can I get a two-wheeler loan with a low EMI if I have a poor credit history?

Getting a two-wheeler loan with a low Equated Monthly Instalment (EMI) can be challenging if you have a poor credit history. However, it is not impossible. Here are some tips to improve your chances:

• Avoid Multiple Applications: Applying to many financial institutions desperate for loan approval actually hurts your credit score further.
• Choose Smaller Loan Amounts: Instead of financing the entire cost, opt for a loan amount of 60-70% of the two-wheeler's value. This reduces the lender's risk.
• Increase Down Payment: Put down a higher down payment of 30-40% of the two-wheeler price. This lowers the loan amount required and builds confidence for the lender.
• Add a Co-Applicant: Add a co-applicant with a good credit score and stable finances. Their profile will complement yours and improve overall loan eligibility.
• Pledge Collateral: Pledging fixed deposits or gold as collateral can help secure a two-wheeler loan even with poor credit history.
• Establish Credit: If your poor score is due to a lack of credit history, start building a profile by getting a credit card and using it responsibly.
• Improve Existing Profile: Clear past defaults immediately and make timely repayments on existing loans. This will steadily improve your score.