How can I qualify for a two-wheeler loan with low EMI?

Getting a two-wheeler loan with a low Equated Monthly Instalment (EMI) can be easy if you meet the eligibility criteria set by financial institutions. Here are some tips to qualify for an affordable two-wheeler loan:

• Credit Score: Maintain a credit score of 700 or higher. A good credit score indicates your creditworthiness and will make you eligible for lower interest rates.
• Income Proof: Have a stable monthly income of at least ₹12,000-₹20,000. Provide proof of income documents like salary slips, bank statements, Income Tax Returns (ITRs), etc. Higher income will ensure you get approval for a bigger loan amount.
• Minimal Existing Loans: Avoid having too many active loans when applying for a new two-wheeler loan. Too many loans give the impression that you may default on repayments.
• Advance Payment: Opt for a higher down payment of up to 30-40% of the two-wheeler value. This will reduce the loan amount sanctioned and lower the EMI.
• Tenure: Choose a shorter loan tenure of 2-3 years instead of the maximum years. Shorter tenure may have a lower interest burden and affordable EMIs.
• Interest Rates: Compare interest rates offered by various financial institutions online. Opt for the loan provider offering lower interest rates to reduce EMIs.
• Co-applicant: If possible, add a co-applicant with a higher income and a good credit score. This strengthens loan eligibility and improves chances of getting lower interest rates.