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Two-Wheeler Loan Eligibility

When applying for a two-wheeler loan with Shriram Finance, you may have to meet stipulated eligibility requirements. The eligibility criteria of Shriram Finance accommodate a wide range of customers. Our application process is simple and straightforward with minimal paperwork. The following sections (eligibility criteria and documentation requirements) help you check if you meet the necessary criteria to qualify for a Shriram Two-wheeler loan.

Eligibility Requirements for Two-Wheeler Loans

To ensure responsible borrowing, please read the following two-wheeler loan eligibility requirements carefully.

  • Profile

    Eligibility Criteria

    Age Limit
    • 21 to 59 years of age
    Employment Status
    • Salaried or Self-Employed
    Employment Proof
    • Salaried Professionals: You may please submit a work experience letter from your current employer stating employment for at least one year.
    • Self-Employed Professionals: You may provide documentation proof of active business operations of at least 2 years.
    Unorganised Sector (Housewives, farmers, etc.)
    • You may have to add a co-applicant or guarantor with a stable income and good credit score.
    Proof of Residence
    • You must have resided at your current address for at least one year.

How to Find Out Your Two-Wheeler Loan Eligibility?

When you want to get financing to purchase a two-wheeler, you need to consider the necessary criteria to understand your loan eligibility.
The following are key aspects that help you understand what determines your eligibility for a Shriram Two-wheeler Loan:

Group
Age Requirements

You must meet minimum (21 years at the time of applications) and maximum age requirements (must not exceed 59 years of age by the end of the loan tenure).

employment
Employment Status

You may be eligible if you are a salaried professional or a self-employed individual.

Proof
Residential Proof

You may be required to provide residential address proof to show that you have resided at the current address for a minimum of 1 year.

Minimal Documentation
Documentation Requirements

You may be required to submit identity, address, and income- related documentation.

Note: Please ensure that you have all the necessary documents including income proof, proof of identity, and address proof - before applying for Shriram Two-wheeler loan.

Documents Required for Two-Wheeler Loan

You may apply for a Shriram Two-wheeler loan by submitting the following documents:

  • Minimal Documentation

    Required Documents

    Identity Proof
    • Passport
    • Driving licence
    • Aadhar card
    • Government-issued Voter ID card
    Address/Residential Proof
    • Passport
    • Driving licence
    Proof of Income
    • Bank statements of the past 6 months
    • A cancelled cheque in your name
    • ACH form for electronic clearing mandate
    Other Requirements

    Recent passport-size photographs

Note: When you are availing a two-wheeler loan for purchasing a new vehicle, you may be required to submit a duly endorsed vehicle registration certificate (RC) once you receive it.

Factors that Affect Two-Wheeler Loan Eligibility

Understanding the factors that influence Shriram Two-wheeler Loan eligibility is crucial when seeking financial assistance. These factors help evaluate the qualification for a loan. Some of them are:

    • Income

      Income plays a pivotal role in determining eligibility. The minimum income required varies depending on the two-wheeler model and cost. Having a steady and sufficient income assures that you have the financial capacity to repay the loan.

    • Existing Debt

      The Debt-to-Income (DTI) ratio shows what portion of monthly income goes towards the repayment of existing debts. A high DTI may impact eligibility, as it indicates a higher financial burden.

    • Work Experience and Stability

      Work history and employment stability are also considered when applying for a two-wheeler loan. Having a steady job with a consistent work history displays an ability to generate income consistently. At Shriram Finance, one must have been employed for at least a year or have a successful track record of running a business for at least two years.

    • Down-Payment

      A down payment is the initial amount of money paid when purchasing a two-wheeler before obtaining a loan. A substantial down payment often makes it easier to qualify for a two-wheeler loan.

How to Improve Your Two-Wheeler Loan Eligibility

Improving your eligibility for a two-wheeler loan can significantly enhance your chances of securing the loan with favourable terms. Here are some steps you can take to improve your eligibility:

  • Maintain a Good Credit Score
    • A good credit score reflects your creditworthiness and ability to repay loans.
    • Ensure timely payments of existing debts, avoid defaults, and keep credit utilisation low.
  • Stabilise Your Income
    • A stable income demonstrates your ability to repay the loan.
    • Maintain consistent employment or a stable business income. For salaried individuals, ensure at least one year of work experience, and for self-employed, ensure two years of successful business operation.
  • Optimise Your Debt-to-Income Ratio
    • A lower debt-to-income ratio shows you have less financial burden.
    • Reduce existing debts and avoid taking on too many loans simultaneously.
  • Choose the Right Two-Wheeler Model
    • The loan amount is often based on the two-wheeler's price.
    • Select a model that fits within your budget and loan eligibility.
  • Make a Substantial Down Payment
    • A larger down payment reduces the loan amount needed.
    • Save enough to make a significant down payment, which can improve your loan eligibility and reduce monthly instalments.
  • Ensure Complete Documentation
    • Proper documentation speeds up the loan process.
    • Gather all necessary documents such as income proof, identity proof, and address proof before applying for the loan.

By following these steps, you can significantly improve your chances of getting approved for a two-wheeler loan with favourable terms.

Two-Wheeler Loan Eligibility FAQs

How do I qualify for a Two-Wheeler Loan?

To qualify for Shriram Two-wheeler Loan, you will need to meet certain eligibility criteria, such as:

  • Minimum age requirement: 21 years old
  • Maximum age requirement: 59 years old
  • Indian citizen
  • Salaried or self-employed with a regular income

Is there a minimum and maximum age eligibility to apply for the two-wheeler loan?

Yes, there is a minimum and maximum age eligibility to apply for a bike loan. At Shriram Finance, the minimum age requirement is 21 years old, and the maximum age requirement is 59 years old.

What documents are required for applying for a two-wheeler loan?

If you choose Shriram Two-wheeler Loan, any one of the following documents are required:

  • Identity proof: Passport, driver’s licence and voter ID card
  • Address proof: Passport, driver’s licence, gas bill with gas book
  • Other documents: Income proof documents, bank statements for the last six months etc.

Is a guarantor or collateral required when applying for the two-wheeler loan?

When applying for a two-wheeler loan, you do not need additional security because the vehicle you are purchasing serves as collateral. For students, housewives, those in unorganised employment, or those struggling to meet eligibility requirements, having a guarantor can significantly enhance the chances of loan approval.

Can I apply for a two-wheeler loan if I am self-employed?

Yes, you can apply for a two-wheeler loan if you are self-employed. However, you must have an active business and prove that the business has been operating successfully for at least two years. You will also need to provide additional documents to prove the income, such as tax returns and bank statements.

Am I eligible for a two-wheeler loan if I have never borrowed before?

Yes, you are eligible for a two-wheeler loan even if you have never borrowed before. Shriram Finance will evaluate your eligibility based on factors such as income, employment status and debt-to-income ratio.

  • Make a large down payment
  • Get a co-applicant with a good credit score
  • Review the credit report regularly and correct any errors you find
  • Pay bills on time and reduce your debts

Will my credit score affect my eligibility for a two-wheeler loan?

Yes. A good credit rating shows you are a responsible borrower, so you are more likely to repay a loan as agreed. This, of course, adds to your chances of getting a two-wheeler loan in the first place and may be a factor in making loan terms more favourable.

Can I borrow for a two-wheeler loan with 650 credit rating?

Yes, 650 credit rating is likely to have reasons to get a two-wheeler loan, but it is usually subject to terms and conditions.

Can I borrow for a two-wheeler loan without proof of income?

Yes, if you can provide alternative documents and if you are applying with a co-applicant it is possible to apply for a two-wheeler loan without proof of income.

Low Processing Charges & Quick Loan Disbursals on Two-Wheeler Loan