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What is the fastest way to go from one place to another? On a bird? With superman? Nope, it is through a two-wheeler. Waiting in long queues for public vehicles is no longer a viable option of transport, especially in major metropolitan cities across India. Having a personal vehicle can be difficult as cars are expensive. The best solution to this problem is a bike. Bikes are useful as they consume less fuel, provide better mileage and can easily slide through traffic during peak hours. Another advantage of a bike is that it is less expensive, this implies that it can be easily availed through a small loan. A small scooty is easily affordable through EMIs. A two-wheeler like a scooty can become an important ally for daily as well as personal transport. So if you are thinking about getting a bike loan, read more to find out. A bike loan is a loan required to finance the purchase of a two-wheeler over easy installments. Almost, all banks and automotive dealers provide a hassle-free loan applicability process. But, do keep in mind that there is always a small chance that your application might get rejected!
There is no such fixed score for availing a bike loan, but it is generally assumed that all financial institutions accept a score of 600 plus or 750 upwards. The CIBIL score ranges between 300 to 900. The higher the number, the better are your chances of getting a bike loan. Different banks have different criteria or eligibility conditions for dispersing a bike loan. Therefore, it is advisable to maintain a good credit score.
As mentioned before, one of the few reasons why banks reject an application for a bike loan is because of a low credit score (this is the minimum requirement). Mentioned below are a few reasons for a poor credit score.
Keeping all these things in mind, additional statutory details which a bank requires for disbursing a bike loan include a mandatory age of 18 years, regular income and repayment potential, domiciliary status, employment status, bank statement and KYC.
If you have a bad credit score and still need a loan, you will have to compromise on a few pointers mentioned below.
What is a good credit score for a bike loan?
There is no such fixed credit score required for a bike loan, but it is advisable to have a score between 600 and 750, as this range is considered ideal for banks and credit institutions.
Can I get a bike loan without a good CIBIL score?
The chances of getting a bike loan with a bad CIBIL score is difficult, but not impossible. You can always negotiate a deal such as more initial down payment in order to reduce the overall loan amount.
How to check your CIBIL Report?
You can check your CIBIL report from the official website of CIBIL - cibil.com. You need to submit the following details - name, identity proof details and date of birth. Relevant contact details along with a few answers on your credit history. Post submission, your credit report will be sent to you in email.
How can I improve my credit rating?
You can improve your credit rating by paying all your outstanding credit card bills and loan EMIs on time. Another way is to clear all your previous debts and existing loans.