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.
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:
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:
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:
The bike loan interest rates vary from one financial institution to another. Low-interest rates are applicable if you have an impeccable CIBIL record.
The mandatory bike loan documents that you need before you apply for a loan are:
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.