One thing you don’t want while buying your new two-wheeler is the rejection of your two-wheeler loan. this can happen due to the incomplete submission of your application or your bad credit history. Here we will tell you some common mistakes and how to avoid them while applying for a two-wheeler loan.
- Low income: financial companies check your monthly earnings and lifestyle. They do this just to make sure that whether you can repay your borrowed money on time or not. If your monthly income is low as compared to the minimum requirement, then this will affect your loan application.
- Age: if your age is less than the eligibility age, then your loan application will gradually be rejected. RBI monitored banks require a minimum age of 18 years for applying for the loan, while the other private companies can differ in these criteria.
- Unstable employment: unstable employment will affect your monthly income, then further it will affect your monthly repayment capacity. So, the banks will not be willing to give you the loan on these conditions. This is because they will have a fear that you will be unable to pay your EMI in the future.
- Low credit score: credit score plays a very important role in every kind of loan. if you have a credit score less than 700, chances are you will get a loan with a very high rate of interest and in some cases, your loan will be rejected. This is because some banks or companies only provide loan to borrowers with a credit score greater than 750
How to avoid rejection
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Extending your credit tenure is very important. Obtaining and paying loans on course will guarantee that that tomorrow, you will get better interest rates and lesser loan rejections as due to regular payments, your credit score will be increased.
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It is additionally worth considering that you need to present all the required papers, fill the application report without errors, and also guarantee you are available before applying.
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Meeting off existing debt and constantly improving your earnings and savings can go a prolonged way in supporting a lender’s confidence in your worth.
Many lenders are nowadays willing to offer you a bike or a scooter loan at interesting rates and attractive offers. One such bank which will help you attain the bike or if you prefer a scooter of your dreams is Indian Overseas Bank Two Wheeler Loan long with attractive Two-wheeler Loan interest rates, this bank in itself will also in the times of festivals provide you with discounts.
