Know the reasons your two-wheeler loan may get rejected

by Kanika Shelatkar Insurance Consultant

Mortgages are one way to get credit if you want to buy something different. Through an investment, one can increase their credit, lowering their financial burden, invest in the business and much more. However, having a loan from a lender is a tricky thing, which requires thorough planning.

There are occasions even after being extra vigilant when the loan application is denied for different reasons. If your bike loan has just been turned down, you probably wonder why. Okay, this can be attributed to quite a few causes. Same rules are applied when a person seeks a bike loan. This can affect the two-wheeler loan eligibility.

Incomplete application: If you skipped filling out some essential checkboxes when applying for a loan, that might be the reason why your loan was denied. So, do not hurry when you fill out the application form. Try to fill in all the relevant and full information on the form.

Low credit score: Whether you have an unfortunate history of repaying credit card bills or refusing to pay an EMI, then your name will be synonymous with reports of lousy loan repayment. It can significantly harm the chances that your loan application will be accepted.

Uncleared debts: If you have too many obligations and insufficient income to pay off, then financial institutions will refuse to give you a new loan. This is because they would question the ability to repay the sum lent on time.

Inadequate cash flow: If your income is not high enough to afford monthly interest payments for the bike loan taken, then this may hamper your loan approval chances. Typically, financial institutions want to make sure you have ample cash inflow to help your company as well as pay back the loan.

False documents: There are certain documents you required to submit with your loan application to get an approval. The primary documents needed for two-wheeler loan are:

  1. KYC documents
  2. Identity proof
  3. Aadhaar card
  4. Bank statement of the previous few months
  5. IT returns of the last financial years
  6. Salary slips

Every loan has some specific eligibility requirements that you need to satisfy to avail funds. In general, the eligibility requirements for a two-wheeler loan outlines:

  1. Age
  2. Income
  3. City/place of residence

If you are unable to meet the eligibility requirements stated by your lender, your loan application may be denied. As with the papers, many borrowers define the eligibility conditions for a two-wheeler loan. Note, however, that the bike loan eligibility varies across lenders.

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About Kanika Shelatkar Innovator   Insurance Consultant

11 connections, 0 recommendations, 73 honor points.
Joined APSense since, March 18th, 2019, From mumbai, India.

Created on Apr 2nd 2020 02:19. Viewed 359 times.


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