What is the Minimum CIBIL Score
Required For a Bike Loan?

Owning a two-wheeler can give you a life of comfort, especially to slide through the long waiting queues at the traffic signals. For people who frequently commute, having a bike or any two-wheeler is one of the best ways to travel easily and reach their destination on time.

A two-wheeler is one of the fastest modes of commute that takes you from one place to another. Major metro cities experience heavy traffic on roads, and there is no viable option as accessible for transportation as a two-wheeler. Bikes are extremely useful as they require less fuel, offer better mileage, and can help you escape extreme traffic.

Another good advantage of a bike is the expense. Since it is more affordable compared to a car, it can easily be bought through a small loan without disturbing your cash flow. One can easily afford a bike through EMIs. Certain factors can affect your bike loan, starting with a good CIBIL score, and if you are looking for more details on a two wheeler loan, we have you covered.

Importance of CIBIL Score For Bike Loan

Before we directly jump to know the mandatory CIBIL or credit score for a bike loan, let’s understand what CIBIL is.

CIBIL stands for Credit Information Bureau India Limited. It is responsible for accumulating the documents of individuals to track their actions in relation to credit cards and loans. Financial institutions provide the relevant documents to CIBIL every month to analyse the score of the borrowers. CIBIL then uses this information and data to publish the individual's credit report.

There are many ways online to check your CIBIL score. The minimum CIBIL score for bike loan should be above 750. A range above 750 is usually considered an excellent score and is enough to get you approval for a two-wheeler loan. A bike loan is generally a secured debt and is subject to approval if your CIBIL score lies between 650 to 700. Furthermore, there are other factors that lenders look into to examine your eligibility for a bike loan. This includes loan types, delayed past payments, and income ratio.

Here is a chart to help you analyse the relationship between a CIBIL score and a loan approval system better:

• Less than 650 - Rarely likely.
• Between 650 - 700 - Subject to approval based on certain factors.
• Between 700 - 750 - Fairly likely.
• Above 750 - Highly likely.

Want To Improve Your CIBIL Score

Don’t be disheartened if you don’t have the desirable CIBIL score; there are ways to mend it. By integrating good financial practices, anyone can improve their CIBIL score. The roadmap to building a phenomenal CIBIL score is:

• Clear your Dues - For a healthy CIBIL score, it is best that you clear your payments such as loans and credit card bills punctually.
• Maintain Low Credit Utilization - It is not advisable to use your credit limit completely. Ideally, one should not exceed 30% of the credit card limit.
• Review your Credit Reports - Understand your credit report. Keep track of your closed accounts, followed by the active ones. If there is any mismatch in the data, consult CIBIL.
• Avoid Applying for Loans/Credit Cards Frequently - Applying for a loan or credit card frequently to conduct your financial activities may reflect that you are unable to maintain savings of your own, or that you spend more than you have. This can create a negative impact on your CIBIL score. Therefore, don’t apply for credit cards or loans frequently.

Bike Loan - Everything Else You Need To Know

Getting a bike loan is possible only when you have done your homework. A few details that you must know about before opting for a two-wheeler loan are: 

Bike Loan Eligibility

• The age limit should be between 18 years - 65 years.
• The borrower should be salaried or self-employed.
• You must be a resident of India residing in the same address for over 1 year. 
• You must be an employee of a private, MNC or a public sector enterprise
• For self-employed, you will need to show ITR returns for 1 consecutive year

Bike Loan Interest Rates

The bike loan interest rates vary from one financial institution to another. Low-interest rates are applicable if you have an impeccable CIBIL record.

Bike Loan Documents Required 

The mandatory bike loan documents that you need before you apply for a loan are: 

• Application form
• KYC Documents (PAN Card, Proof of Age, and Proof of Address)
• Proof of Income
• Photographs as identity proof

Conclusion

A good CIBIL score is an important aspect to consider before applying for a bike loan. Maintain a minimum CIBIL score for bike loans for quick and seamless approval.

Two-wheeler loans can be availed through various financial institutions. However, SMFG India Credit lets you avail of a two-wheeler loan smoothly. With many features and benefits, working professionals and individuals can easily get attractive bike loan interest rates and instant approval. Moreover, through the bike loan EMI calculator, one can calculate the EMIs they must pay. 

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