documents required for bike loan

What are the documents required for bike loan?

When you decide to purchase a bike model of your choice but are short on funds, a bike loan is a convenient option. One important thing that you should check during this process is your bike loan eligibility as all your efforts would get wasted if the lender rejects your loan application. Lenders go through several things like your repayment capacity, background, source of income, etc. as they want to avoid the risk of non-repayment. These eligibility criteria include a list of documents that the lenders consider as proof of your declaration. Missing documents or improper documents can also result in the rejection of your loan application. Read on to know about the documents required for bike loan.

The eligibility criteria for a 2 wheeler loan vary between different lenders but there are some standard requirements. To be eligible for a bike loan, generally, you have to fulfil the requirements that include the following:

  • Your age

You should be at least 18 years or a maximum of 65 years during the time of applying for the loan. The upper age limit may vary among different lenders but most lenders would fix it within the retirement age.

  • Your current address, contact number, and KYC documents

You have to reside at a specific address for at least a year from where you are applying for a bike loan. Lenders require this as proof of residential stability. You should have a permanent contact number and documents related to KYC, ID proof and address proof.

  • Income

Whether you are a salaried or a self-employed individual, you need to have a stable income. For salaried applicants, you should have a stable job for at least one year. If self-employed, you have to show the IT returns for the last few years. A high income may ensure a lower interest rate and help you get a bike loan at a discounted interest rate.

  • Cibil Score

Lenders will check your CIBIL (Credit Information Bureau of India Limited) score. The score can vary within a certain range. The bureau calculates it after reviewing your credit history, which includes your credit card payments. The higher the score, the greater is your chance of a bike loan eligibility at a low-interest rate. A low CIBIL score will increase the rate of interest on the loan.

  • Outstanding loan

If you already have an outstanding loan to your name, it will affect your eligibility. Some lenders may not approve your loan if they find out that you already have ongoing loans. They may check whether you defaulted on any of the loans and the time period between the default and your current bike loan application.

Arrange for both original and photocopies of the documents for submission to the lender as proof of your declaration on the application form. There are certain standard documents required for bike loan. If you are a salaried individual, submit the following documents:

  • KYC documents like Passport, Pan Card, Aadhaar Card, etc
  • Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement. You may submit computerised documents issued by the government
  • Lenders would accept address proof in the name of your spouse or parents
  • Copies of passport size photographs
  • PAN card
  • Salary slips of last three months
  • Salary statement for last six months
  • Proof of verified signature
  • Bike registration certificate
  • Latest form 16

If you are a self-employed individual, you may have to submit the following:

  • KYC documents like Passport, Pan Card, Aadhaar Card, etc
  • Address proof consisting of Passport/Driving License/Voter ID card /Utility Bill / Aadhaar card/ Bank account or Post Office savings bank account statement. You may submit soft copies of documents issued by the government
  • Lenders would accept address proof in the name of your spouse or parents
  • Copies of passport size photographs
  • PAN card
  • Last two year’s income tax return as income proof
  • Income statement for last few months
  • Proof of verified signature
  • Bike registration certificate
  • TDS certificate and your business details

To get your bike loan in a hassle-free process, check your loan eligibility and the documents required for bike loan before you apply. This would lead to faster approval by the lender and you can buy your favourite bike at the earliest.

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