2 Wheeler Loan for Low Income (Rs.4000-15000) Earners: Income Reqd. by 18+ Lenders

Sales of two wheelers (scooters, motorcycles and mopeds) in India has been rising since last 5 years. Here’s the data from Society of Indian Automobile Manufacturers (SIAM) showing the domestic sales trend of two wheeler:

2011-122012-132013-142014-152015-162016-17
 1,34,09,1501,37,97,1851,48,06,7781,59,75,5611,64,55,8511,75,89,511

Despite this meteoric rise in demand for 2 wheelers, many people still cannot afford to buy their own vehicle. Because, for such individuals the cost is a concern. And for such individuals who cannot buy because of money, two wheeler loan is the solution.

There are multiple eligibility criteria before a two wheeler loan application is approved. And the most important being the income. It is the only factor through which lenders evaluate whether the applicant has repayment capacity. Although lenders also consider CIBIL score to judge credit worthiness of the applicant. Income is the very first thing checked.

Read about 2 wheeler loan for students.

Listed below is the minimum monthly income required by two wheeler loan providers in India:

Since two wheelers are not very expensive (assuming you are not buying a very high end bike). The income eligibility criteria is not very high compared to car, home and personal loan.

Name of the bankMinimum Monthly Income Required
HDFC BankRs. 7, 000 - Rs. 8, 000
Tata CapitalIncome not mandatory
Mahindra FinanceNo income proof required
IndusInd BankRs. 10, 000
State Bank of IndiaRs. 5, 000 - Rs. 6, 500
Tamilnad Mercantile BankRs. 6, 250
Hero FincorpNo income proof required
United Bank of IndiaRs. 15, 000
Muthoot CapitalRs. 8, 000 (salaried) - Rs. 10, 000 (self employed)
Central Bank of IndiaRs. 10, 000
Karnataka BankRs. 4, 000 - Rs. 5, 500
Punjab National BankRs. 10, 000
Bank of MaharashtraRs. 25, 000
Dena BankRs. 8, 250
Oriental Bank of CommerceRs. 10, 000
Allahabad BankRs. 15, 000
Indian Overseas BankRs. 5, 000
Syndicate BankRs. 4, 500

There are many other prominent lenders (listed below) offering loan for bikes, but their income requirement is not available.:

  1. ICICI Bank
  2. Canara Bank
  3. Bank of Baroda
  4. Bajaj Finserv
  5. IndusInd Bank
  6. Fullerton India
  7. Bajaj Finance
  8. L&T Finance & others

There are some lenders who do not ask for any income or income proof. However these lenders ask for guarantors, employment/business and residential stability, bank statement.

Other features in 2 wheeler loan:

Loan amount: Not all banks offer 100% finance for the two wheeler. Typically 85% – 95% of the invoice price of the vehicle is provided.

Pre-closure: Since the loan amount is small, it is recommended to close the loan as early as possible before the standard tenure. Although financiers will charge a small fee for pre-closure, it is worth doing it. This has two important benefits – credit score will be positive and money is saved as burden of EMI reduces.

Start building credit score: If you are taking loan for the first time for 2 wheeler, then it is an excellent opportunity to start building your credit score. Since loan amount is small, regularly paying-off EMI will put you in good book of lender and credit bureau. Apart from regular EMI payment before last date, you need to follow very simple rules to improve credit score –

  1. Never pay minimum balance and always pay in full
  2. Never show hunger for too much of credit. And do not apply for too many credit applications in a short span of time.
  3. Never do card settlement
  4. Stay away from balance transfer
  5. Do not spend over the credit limit

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