Bike loans allow you to purchase and start using your dream bike right away while repaying the loan amount to the bank or NBFC in easy monthly instalments (EMIs). For salaried individuals, providing salary slips and proof of income is necessary when applying for a bike loan. But what if you don't have a fixed monthly salary? Don't worry! You can still get a bike loan by following the right process.
In this article, we will guide you through the process of increasing your chances of getting approved for a bike loan without a salary slip in India.
1. Show Proof of Alternate Income Flows
Submitting alternate documents as income proof is key to getting a bike loan without a salary slip. Important options include:
- Income tax returns: ITR for the last 2 years can show your annual earnings. The ITR should reflect rising levels of income.
- Bank statements: High-value transactions, consistency and regularity of cash credits indicate healthy cash flows.
- Business registration papers: Business / professional licences, trademarks etc. help establish ownership and financials of your enterprise.
- Invoices and purchase orders: Billing and sales documents support proof of business activity and income generation.
- CA certificate: Audited financial statements or income certification from a chartered accountant act as proof of income.
- Form 16: It can substitute salary slips by showing tax deductions and annual income from the previous employer.
- Fixed deposit receipts: Substantial FDs indicate investment capacity and help get higher loan eligibility.
2. Apply Jointly with a Co-applicant
Adding a co-applicant like your spouse or family member combines the income eligibility of both applicants, significantly improving the bike loan without salary slip eligibility. Ensure the co-applicant has a stable job and a good credit history. Their income and credibility help overlook the lack of your direct income proof.
3. Offer Collateral as Security
Pledging liquid assets as collateral security against the bike loan amount improves lender confidence. Some options you can explore are:
- Gold Jewellery and Ornaments: Keep gold jewellery ready for the pledge to improve loan eligibility. The gold is valued, and you can borrow up to 75%* of its value.
- Fixed Deposits: Lien can be marked on existing FDs with the loan provider to improve your credit limit on the bike loan.
*A lien on a fixed deposit (FD) is a legal claim that a bank/NBFC has over the FD proceeds. This claim is placed when an FD is used as collateral for a loan or credit facility.
Submitting collateral in the form of liquid assets like gold or FDs makes approval of higher loan amounts possible compared to just your income proofs.
4. Request Lower Loan Amounts
When applying for a two-wheeler loan without salary slip, seek a lower loan amount that matches your declared income levels and seems realistic as per the income proofs submitted. Start with a smaller loan amount you are comfortably able to repay. Once you build credit with the lender, you can enhance your loan eligibility in future.
5. Apply with a Financial Institution You Already Have an Account With
Existing account holders with good financial behaviour and repayment track record get faster loan approval compared to new customers. As the financial institution already knows you, extensive documentation is not required. However, ensure your existing accounts are maintained well, and any previous obligations are cleared.
Conclusion
Getting a bike loan without salary slip may seem challenging, but it is possible if you follow the right process. The key is to establish your income eligibility through alternate proofs and improve lender confidence.
Banks and NBFCs are today willing to give bike loans to self-employed individuals and professionals without conventional salary slips. So, plan your bike purchase wisely.
