Who is eligible for a top-up two-wheeler loan?

The key eligibility norms for qualifying for a top-up two-wheeler loan are:

• Presence of an Existing Loan: You must have an active loan running on your two-wheeler from the same loan provider you are applying to for the top-up. Some minimum tenure would need to be completed.
• Credible Repayment History: Your repayment track record should reflect no defaults, delays or bounced EMI cheques on the current loan. This shows discipline.
• Good Credit Score: A good credit score ensures quick approval for the top-up loan. Lower scores may require more processing.
• Acceptable Loan-to-Value Ratio: The combined loan amount post-top-up, compared to the current vehicle value, should be within acceptable limits per the financial institution’s policies.
• Mandatory Documentation: All required Know Your Customer (KYC) and income documents should be updated and furnished per the loan provider’s requirements.
• Legal Ownership: You must be the legal owner of the two-wheeler that was financed by the original loan and used as collateral.
• Employment: A stable job or business for salaried and self-employed applicants, respectively, for a minimum period is usually required.
• Income Eligibility: To be eligible for the increased loan amount after top-up, net monthly income or turnover should meet the lender's criteria.

Meeting these parameters ensures quick processing and approval of the top-up loan application.