Know the reasons your two-wheeler loan may get rejected
by Kanika Shelatkar Insurance ConsultantMortgages 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:
- KYC documents
- Identity proof
- Aadhaar card
- Bank statement of the previous few months
- IT returns of the last financial years
- 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:
- Age
- Income
- 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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Created on Apr 2nd 2020 02:19. Viewed 337 times.