How to check the eligibility criteria for a two-wheeler loan?

While earlier, buying a two-wheeler meant spending years trying to save up enough to finance its cost, today, doing so has become exceptionally easy, thanks to the myriad two-wheeler financing options available. However, this increase in the availability of bike loans has been accompanied by a rise in the number of defrauding cases. To protect themselves from potential losses, lenders have instituted a strict list of eligibility criteria for two-wheeler loans that must be fulfilled by applicants before a loan can be sanctioned.

The two wheeler loan eligibility is usually outlined on the website of all banks and lenders. You can sift through this list to check if you qualify for a bike loan. Here’s a list of the most common eligibility criteria used by lenders for approving bike loans.

Age Range

Most lenders have certain age parameters in place to gauge an applicant’s eligibility for a bike loan. To apply for a two-wheeler loan, you need to be at least 21 years old. In other words, underage individuals are disqualified from applying for a two-wheeler finance opportunity. Some lenders may allow applications from individuals who are 18 years and above, but in such cases, you would need a guarantor to vouch for you. The upper limit for two-wheeler loan applications is set at 65 years by most lenders.

Annualised Income

Whether you are salaried or self-employed, you will also have to ensure that your annual salary or income meets the basic requirements outlined by your lender. While this figure varies from one lender to the other, it is usually capped at a very nominal rate. A higher monthly income can also qualify you for a higher loan amount as it gives the lender assurance that you will repay the amount within the stipulated time frame.

Good Credit Score

Your credit or CIBIL score plays a critical role in determining your eligibility for a bike loan. Ideally, you should have a credit score that’s higher than 750. High credit scores can help you attain two-wheeler loans at lower interest because they present you as a credible and reliable borrower. Alternatively, if you have a low credit score, you can still apply for a bike loan, but you may have to pay higher interest for the same.

Repayment History

If you’ve previously applied for a bank loan and repaid it on time, you have successfully established a good credit profile. This will help you meet the eligibility criteria for a two-wheeler loan. Lenders will access your repayment history as well as ongoing loan burdens to determine your eligibility for a new bike loan. If you already have significant EMI obligations to fulfill, you may be eligible for a lesser loan amount.

Income Stability

You will need to prove a stable source of income to qualify for a bike loan. While both salaried and self-employed persons can apply for – and get two-wheeler financing, they do have to prove income stability or work experience to the lender. If you are a salaried individual, you will only qualify for the loan if you’ve worked at your current place of employment for at least a year. On the other hand, if you’re a self-employed person, you will have to prove to the lender that you’ve been running the business for at least two years.

Residential Stability

Lenders need to ensure that you won’t flee once the loan amount is sanctioned. To do so, they have certain residential stability criteria in place. Under this eligibility clause, you can qualify for a bike loan only if you’ve resided at your current address for at least a year.


Ability to Furnish the Necessary KYC Documents


Successfully meeting the eligibility criteria for a two-wheeler loan is not enough, as you have to prove this eligibility to the lender with the help of valid documents. Thus, you must also possess the list of KYC and income proof documents listed by the lender. The general list of documents that need to be furnished to prove eligibility includes your Aadhaar Card, voter’s ID, passport, driver’s licence, ITR, bank statements and salary slips.


While these are the general eligibility criteria for a bike loan, the specifics of the same may vary from lender to lender. It is recommended that you thoroughly assess the eligibility criteria for a bike loan before applying for one to enjoy instant approval and quick loan disbursal. Most lenders and loan aggregator websites allow you to check your eligibility online in a matter of seconds. You can use their EMI calculators to check if you qualify for the loan, the amount you’re eligible for, the proposed monthly instalments and the stated repayment tenor.