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Check your eligibility for a two-wheeler loan for a low CIBIL score.
Purchasing the ideal bike often requires a significant financial investment. A two-wheeler loan is a common method of funding. However, a low credit score can present a major hurdle. It may lead to loan rejections or approvals with high interest rates. This makes bike ownership appear difficult.
Understanding the importance of your CIBIL score in the loan approval process remains essential. It is equally important to explore alternative ways to obtain a two-wheeler loan in India, even with poor credit history. This helps you navigate the lending process effectively and secure the financing you need.
It is possible to obtain a two-wheeler loan even with a low CIBIL score
Maintain a low credit utilisation ratio
Review your CIBIL report regularly to understand and improve your score
A CIBIL score of 700 is ideal for a loan; however, scores between 650 and 700 may still be acceptable
Choose a lender that considers applications from borrowers with low credit scores
Negotiate loan terms with your existing bank, especially if you have a long-standing relationship
Add a co-signer or guarantor with a strong credit score to boost your chances
Increase your down payment to reduce the lender’s risk
Strengthen other eligibility criteria, such as stable income and job consistency
Securing a bike loan with a low CIBIL score can be challenging, as lenders generally prefer applicants with a strong credit history. You can, however, still obtain financing for your two-wheeler. By implementing simple strategies to improve your creditworthiness, you increase your chances of approval.
You can still get a loan to buy a bike even with a low CIBIL score. Lenders may still consider your application even with a low CIBIL score if you take these steps to improve your creditworthiness:
Clear your dues
Pay your EMIs on time
Keep your credit utilisation balance low
Get your CIBIL score report
If you have a strong credit score, you are more likely to be eligible for two-wheeler loans from most banks and financial institutions. Credit scores range from 300 to 900, and a higher score indicates better creditworthiness.
While many lenders prefer applicants with a CIBIL score of 700 or above, there is no fixed minimum credit score for bike loans. The minimum credit score requirement can vary from lender to lender, depending on internal policies and risk assessment.
You can implement the following strategies to obtain a two-wheeler loan with a bad CIBIL score. Here are some steps you can follow to secure financing:
Before taking a loan, you need to determine which lender offers the most suitable financing support. Begin your research online and compare lenders to find the one that best suits your preferences.
You can then contact the selected lender to discuss your circumstances and explain the reasons for your lower CIBIL score. This discussion can help you obtain the loan with appropriate conditions and competitive rates.
You can inform the bank about your current situation and any past financial difficulties. A long-standing relationship with the bank can allow you to negotiate loan terms or explore alternative solutions. This approach can support your efforts to secure a two-wheeler loan with a low credit score.
Having a co-signer with a high credit score can significantly increase your loan approval chances. A co-signer agrees to share responsibility in case you default. Lenders evaluate the co-signer’s credit profile along with yours when assessing the loan application.
You can choose to make a larger down payment to boost your chances of securing a loan with a low credit score. A higher lumpsum payment reduces the loan amount and demonstrates your commitment to repayment, which lenders consider positively.
You need to meet all other eligibility requirements for the two-wheeler loan. Lenders are more likely to accept your application when you satisfy all criteria. You have to submit the required documents to prove a stable and regular income.
This evidence can support the lender’s decision to approve your bike loan.
A low CIBIL score can create multiple challenges during the bike loan application process. Below are some common barriers you may encounter:
You face a higher risk of loan rejection when your CIBIL score is low. The lower the score, the greater the possibility that a lender will decline your application.
Lenders often charge higher two-wheeler interest rates to individuals with low credit scores. This increases the total cost of the loan, as it helps lenders compensate for the perceived risk of default.
You may receive approval for a loan, but for a lower amount than required. In such cases, you have to contribute a higher down payment from your personal funds to purchase your two-wheeler.
You need to include a co-applicant or guarantor with a strong credit score to enhance your chances of loan approval. The presence of a reliable co-signer offers additional assurance to the lender regarding repayment.
Lenders apply stricter verification processes and require additional documentation from applicants with a poor credit history. You need to submit comprehensive proof of income, employment stability, and details of any co-applicant or guarantor.
Lenders often offer shorter repayment tenures to reduce their risk exposure. This results in higher monthly EMIs and a quicker repayment timeline, which can place additional financial pressure on you.
Applicants with a low credit score frequently have to bear higher processing fees and related charges. Lenders use these additional costs to offset the increased risk of lending.
A low CIBIL score restricts your options to a limited group of lenders. Many banks and NBFCs require a minimum score of 700 or 750, leaving you with fewer choices and potentially less favourable terms.
A poor credit score limits your ability to negotiate the interest rate, tenure, or repayment conditions. Lenders tend to impose fixed terms with minimal flexibility in such cases.
The following tips can enhance your chances of getting approved for a low CIBIL score bike loan:
Your monthly income plays a significant role in determining your repayment capacity
Improve your credit score as a high score increases the chances of loan approval and reflects responsible financial behaviour
Stable employment and a consistent job history strengthen your loan eligibility
Most financial institutions have specific age criteria that loan applicants need to meet
The number and value of your existing loans influence your eligibility for a new loan
To apply for a bike loan on Bajaj Markets, you must fulfil the following criteria:
Age between 18 to 65 years (some lenders require a minimum of 21 years)
Must be an Indian citizen
CIBIL score of 750 or above preferred
Minimum annual income of ₹96,000 for salaried individuals
Minimum annual income of ₹1.2 Lakhs for self-employed individuals
At least 3 years with the same employer for salaried applicants
Minimum 2 years of business continuity for self-employed individuals
Resident of the same city for the past 1 year
A CIBIL score of 750 and above is considered ideal for a bike loan. However, lenders may also approve loans with scores between 650 and 700, depending on other eligibility factors.
The loan processing time varies based on the lender you choose. In general, it may take 2 to 3 working days, although some lenders provide instant approval options.
Loan rejection means the lender did not find you eligible based on factors like income, credit score, or job stability. The enquiry gets recorded in your credit report but does not lower your score unless you apply multiple times in a short span.
Here is what you can do next:
Check your credit report for errors or low scores
Improve your credit score by paying dues on time
Apply with a lender that accepts lower CIBIL scores
Add a co-applicant with a strong financial profile
Reduce existing debt before applying again
On Bajaj Markets, you can repay the full outstanding loan amount before the scheduled end of the tenure. This allows you to close the loan early and reduce the total interest paid. However, prepayment may attract additional charges, usually calculated as a percentage of the remaining loan balance.
Here is a list of documents you need when you apply for a two-wheeler loan on Bajaj Markets:
Identity Proof: Aadhar card, PAN card, Voter ID, Passport, or Driving Licence
Address Proof: Aadhar card, Voter ID, Passport, Driving Licence, Rent Agreement, Utility Bills, or Ration Card
Income Proof for Salaried Individuals: Last 3 months’ salary slips and Form 16
Income Proof for Self-employed Individuals: ITR documents or bank statements
Asset Proof (if applicable): Property tax receipt for house, land, or building
Photographs: Recent passport-size photograph(s)
Bank Documents: Recent bank statements
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