What are the eligibility criteria for a two-wheeler loan for salaried individuals?

Here are the typical eligibility criteria for salaried individuals to avail of a two-wheeler loan:

• Age: Most lending institutions require applicants to be between 21 and 60 years of age. However, there are some loan providers that allow applicants of 18 years if applying with a co-applicant, while others may extend the maximum age to 65 years.
• Income: Salaried applicants usually need to provide proof of stable income. Usually, a minimum monthly income of ₹ 15,000-20,000 is expected
• Employment: Most lending institutions require salaried individuals to have been employed with their current employer for at least 1 year. A work experience letter may be required.
• Residence: Applicants are generally required to have lived in their current residence for a minimum of one year. Residence proof is needed.
• Documentation: Documents like identity proof, address proof, bank statements, salary slips, and employment proof are usually required.
• Credit History: A good credit score and repayment track record on existing loans typically improve loan eligibility.
• Co-applicant: Sometimes, loan providers may request a co-applicant for better loan repayment assurance.
• Down Payment: A certain percentage of the vehicle cost, typically 10-25%, may be required as a down payment.
• Cost of vehicle: The vehicle to be purchased should not exceed a certain value as per the financial institution criteria.

Overall, to secure a two-wheeler loan, salaried applicants must demonstrate income stability, job continuity, residence status, and creditworthiness. Providing the necessary documentation is essential for approval. By understanding these criteria and comparing different loan providers’ offerings, potential borrowers can make informed decisions that best suit their financial situations.