Can self-employed individuals get a bike loan?

Yes, self-employed persons like businessmen, traders, and professionals can avail of two-wheeler loans from most banks and Non-banking Financial Companies (NBFCs):

• The key eligibility criteria is having proof of business continuity for at least 2 years. Self-employed applicants need to provide income tax returns and bank statements as proof of income.
• In addition to 2 years in business, the self-employed applicant's venture should be profitable with steady cash flows to comfortably service the loan Equated Monthly Instalment (EMI).
• Self-employed applicants should have a good credit score, usually over 700, to get bike loan approval. Those with scores below 650 may face rejection.
• The minimum monthly income criteria for self-employed persons are higher than those for salaried individuals, usually in the range of ₹ 25,000-30,000 per month.
• Self-employed applicants may be asked for additional documents like business registration proof, shop establishment license, Goods and Services Tax (GST) registration, etc.
• If the credit profile is weaker, collateral or security may be needed in some cases. Property fixed deposits can be offered as collateral.
• Interest rates are generally higher by 1-2% for self-employed two-wheeler loan applicants compared to salaried ones.
• Loan amount and tenure eligibility can vary depending on income stability and credit profile.
• Having an existing relationship with the loan provider can help self-employed applicants negotiate better loan terms.