Two-Wheeler Loan for Low Credit Score: Best Tips for Loan Approval
July 09, 2025

Are you dreaming of owning your own two-wheeler but low or poor credit score holding you back? While having a satisfactory credit score is important for securing better deals on bike loans, you can still get a loan even if your credit is not in the best shape.
In this blog, we will guide you on how to get a bike loan approval with low credit score. However, please note that having a good credit score (any score above 750) is absolutely necessary if you want to enjoy a hassle-free two-wheeler loan journey with favourable terms and conditions.
Understanding the Impact of Bad Credit Score on Two-Wheeler Loans
Your credit score plays a significant role in determining your eligibility for a bike loan. A good credit score, typically above 750, increases your chances of loan approval. However, if you have a bad or poor credit score, below 600, the likelihood of getting approved for a loan decrease significantly.
1. Reasons for a Low Credit Score
Various factors can contribute to a low credit score. Poor repayment history, multiple credit entries at once, and a high amount of unsecured loans are some common causes of a bad credit score.
For instance, consistently missing payments or defaulting on previous loans can negatively impact your credit score. Similarly, applying for multiple loans or credit cards simultaneously indicates financial stress and may result in a lower credit score.
Additionally, having a large amount of unsecured debt without collateral can also lead to poor credit scores. Evaluating these factors is important so you can work on improving your CIBIL score.
2. Impact of a Low Credit Score on Bike Loan Approval
A low credit score can significantly affect your chances of securing a two-wheeler loan. Before approving a loan application, banks consider credit score to determine an individual's creditworthiness. Here's a breakdown of the chances of bike loan approval based on different credit score ranges:
As you can see, maintaining a decent credit score is crucial for obtaining a bike loan at favourable terms. However, don't lose hope if your credit score is less than ideal. There are strategies you can employ to improve your chances of loan approval.
Loan Approval Tips for Getting a Two-Wheeler Loan for Bad Credit Score
1. Increase the Down Payment
One way to enhance your chances of getting approved for a two-wheeler loan for bad credit is by increasing the down payment amount. A higher down payment reduces the overall loan amount and shows the lender that you are committed to repaying the loan.
For example, let's say you want to purchase a bike worth ₹80,000 and your credit score is low. By offering a larger down payment, such as ₹60,000, you can reduce the loan amount to ₹20,000. This reduces the bank's risk and increases the likelihood of loan approval.
Pro Tip: Invest in short-term Fixed Deposits or set up a Recurring Deposit to accumulate funds specifically meant for loan down payment.
2. Find a Co-signer
If your credit score is not up to par, having a co-signer with a good credit score can significantly improve your chances of securing a two-wheeler loan. A co-signer is someone who agrees to take responsibility for the loan if you default on payments.
Banks may consider the co-signer's creditworthiness when assessing your application. Therefore, having a financially responsible co-signer can boost your chances of loan approval. Please note that not all banks offer this facility.
3. Negotiate with the Bank
If you have genuine financial difficulties that led to a poor CIBILscore, consider explaining your situation to the bank. Be transparent about your past financial challenges and demonstrate a willingness to make timely repayments moving forward.
In some cases, banks may be willing to negotiate the terms of the loan or offer alternative solutions, especially if you have a long-term relationship with the bank. This option should be considered as a last resort, but it can potentially help you secure a two-wheeler loan for bad credit.
Final Thoughts
Securing a two-wheeler loan for bad credit may seem challenging, but it's not impossible. That said, always strive to keep a healthy credit score. It improves your chances on getting quick access to credit.
Planning to buy a two-wheeler? Apply for Chakra Loan with Ujjivan SFB and get up to 95% financing on the on-road price of the vehicle. Enjoy competitive interest rates, flexible repayment tenures and more. Alternatively, you can check our comprehensive product suitedesigned to make your financial life better.
FAQs
1. How can I check my bike loan eligibility?
To check your bike loan eligibility, you need to meet certain criteria such as age limit, and income requirements set by the bank, among others. Kindly contact your bank for more information.
2. How much CIBIL score is required to get a bike loan?
Ideally, a CIBIL score of 750 or above is recommended to get a bike loan at competitive interest rates.
3. How long does it take to get a two-wheeler loan approved?
The time taken for two-wheeler loan approval can vary depending on the bank and their internal processes. In some cases, it can take a few days to a couple of weeks.
4. What happens if my two-wheeler loan application is rejected?
If your two-wheeler loan application is rejected, it's essential to understand the reasons behind the rejection. Take this opportunity to improve your credit score and address any issues that may have led to the rejection.
5. Can I prepay my two-wheeler loan?
Yes, most banks allow borrowers to prepay their two-wheeler loans. However, it's essential to check with your bank regarding any prepayment charges or penalties that may apply.
6. What documents are required for a two-wheeler loan application?
The documents required for a two-wheeler loan application may vary across banks. However, some common documents include proof of identity, address proof, income proof, bank statements, and photographs.
7. Can I get a two-wheeler loan if I am self-employed?
Yes, self-employed individuals can also avail themselves of a two-wheeler loan. Banks typically require self-employed individuals to provide additional documents such as income tax returns, bank statements, etc., to assess their eligibility.
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