Three Wheeler Loan Interest Rates

Documents Required for Three Wheeler Loan

Three wheeler loan allows borrowers to pay monthly EMIs comfortably as most of them can not afford to make the lump sum payment due to financial constraints.

Once you decide to apply for a three wheeler loan, it is essential to check your three wheeler loan eligibility. Lenders are extremely cautious and sanction the loan only after checking the repayment capacity of the borrower. Thorough background checks are conducted before the loan is disbursed as there has been a sudden rise in number of defaulters over a period of time.

To make sure your application for the loan is not declined; you must possess necessary documents and declare your exact source of income for speedy approval.

Below are the general three wheeler loan eligibility criteria:

• Minimum age of the loan applicant should be at least 18 years at the time of applying for the loan, and the maximum age limit should be 70 years.
• Applicant should be residing in the same house for at least one year to show residential stability.
• Applicant should be in a stable job for at one year or self-employed with IT returns of two years.
• Applicant should have a good CIBIL score with credit bureaus.
• Applicant should have a permanent telephone number and possess KYC and other related documents.

What are factors affecting three-wheeler loan eligibility?

Your three-wheeler loan eligibility depends on factors like your income, credit score, and current financial obligations.

Credit score: One of the crucial factors considered by your lender to determine your eligibility is your credit score. It is a three-digit number that indicates whether or not you can repay the loan amount without any delays. You will need to maintain a minimum credit score of 750 to secure a three-wheeler loan.

Income: Your three-wheeler loan eligibility also depends on your income. Since a three-wheeler loan is secured, you will have to convince your lender that you have a stable source of income. A higher-income will also ensure a lower interest rate.

Outstanding loan: Having large outstanding debts will hurt your three-wheeler loan eligibility. If your lender finds that you have current obligations, you may not be offered a loan.

Tips on how to improve your three-wheeler loan eligibility 

Three-wheeler loans can be improved using the following tips:

• Maintain a higher credit score: when you are applying for a three-wheeler loan, make sure that you have maintained a minimum credit score of 750.
• Choose a longer loan tenure: Longer loan tenure gives the borrower more time to pay off his EMI. Your three-wheeler loan eligibility increases when you choose a longer loan tenure.
• Opt for a joint loan: A co-applicant with a good credit score increases your eligibility for a three-wheeler loan.
• Show additional source of income: When you show your additional sources of income, it indicates that you can repay the loan amount without any delays or defaults.

Documents Required for Three Wheeler Loan

Here is a list of documents required for a three-wheeler loan:

Accepted KYC Documents for an Individual Customers:

1. Passport
2. Driving License
3. Voter’s Identity Card
4. Aadhaar Card
5. Job Card issued by NREGA
6. Letter issued by the National Population Register

Deemed to be Officially Valid Documents (DOVD):

1. Utility Bill*: Electricity, Telephone, Post-paid Mobile Phone, Piped Gas, Water bill
2. Property or Municipal tax receipt
3. Pension or Family Pension Payment
4. Letter of Allotment of Accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation.

*Utility bill, in the name of the customer, not more than 60 days old.

Additional Documents for Salaried Persons

Salaried persons:

• Employment or offer letter
• Last salary slips <45 Days
• Last six months bank statements and latest form 16

Self-Employed:

• Last three years income tax returns
• Last six months bank statements
• Sales tax returns
• TDS Certificate
• Company details

Additional Document:

• Permit details

Make sure to keep both originals and photocopies of the required documents for loan processing. Based on the above documents, the lender will process your three-wheeler loan application, and you can expect a positive outcome on your loan approval.