The working middle class depends on public transportation for the basic day to day travel. Dependency on public transportation for basic commutation adds an extra factor of stress to an individuals already stressful life. Even if the individuals travel using cabs, it becomes an additional expense added to their life. The purchase of a car is quite expensive for some, thus the best option for getting a vehicle is to buy a two wheeler. A two wheeler is one of the most efficient solutions for travelling through traffic without any hassles. Individuals who wish to purchase a bike can opt for a bike loan. A bike loan is a loan that is provided by financial institutions to the customers who wish to buy a bike.
In a bike loan, the loan amount is provided to the customers by the financial institutions at a certain interest rate. The interest rates on a bike loan are generally low. The repayment on a bike loan is done through equated monthly instalments (EMIs). Monthly instalments mean that the customer has to pay back the loan amount on a monthly basis for a set tenure period. Repayment done through monthly instalments make the process of repayment easy for the customer availing the loan. Generally, financial institutions provide fixed interest rates on bike loans. A fixed interest rate means that the customer has to pay a specific fixed amount for the tenure period. A bike loan is beneficial for buying a two wheeler without dipping in to their savings account. Financial institutions have a set of eligibility criteria’s set that they have to meet to be eligible for the loan. The eligibility criteria’s differ for different financial institutions.
Ways to improve two wheeler loan eligibility:
1. Employment:
To ensure that the customer who was availing the loan will not have any issues in making the repayments on the loan financial institutions need to make sure that the customers are earning monthly, so they would not have a problem in making the repayments.
2. Age:
Before sanctioning the loan, financial institutions make sure that the customers do not have any issues in making the repayments on the bike loan. Thus, to ensure that the customer would not have any problems in making the repayments so financial institutions would be more willing to provide the loan to customers of young age who are earning a monthly salary, so they would not have a problem in making the repayments.
3. Work experience:
Having work experience before getting the loan will increase the eligibility of an individual for getting the loan. Financial institutions will prefer customers that have work experience. As work experience would indicate that the customers would not have a problem in gathering funds for the loan.
4. Income potential:
The repayment capacity of the customer who is availing the loan is important to be eligible for the loan. The customers should have a certain minimum income potential for being eligible for the bike loan.
5. Credit history:
Before providing the loan, financial institutions conduct a background check on the customer’s credit history. Thus, maintaining the credit history before applying for the bike loan will help the customer in being eligible for the loan.
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