To be eligible for a motorbike loan, buyers must meet the Consumer Credit Laws regulations which include being over 18, having employment and documentation. All lenders offering loans to consumers must abide by these ASIC regulations when assessing finance applications. That includes banks, finance companies, brokers and dealers offering loans through their finance partner. When taking on consumer credit, buyers should check that the lender is a licensed credit provider. The credit provider number should be displayed by the lender.
Before considering that purchase, buyers can check that they are eligible for financing. They can even apply for their finance before the purchase so they are assured that they not only meet the criteria but are approved for the amount required for the purchase.
Eligible for a Motorbike Loan? Checklist
To be eligible to apply for a personal loan in Australia, applicants will need to be 18 years of age or over and have identification, be an Australian citizen or hold permanent residency and meet financial criteria. The financial eligibility requirements include having employment or income with verifiable documents to prove that income. These documents are typically payslips, tax returns and bank statements. Lenders may request documents for several months or even a year. Documents proving residency including place of residence is required.
Financial details on expenses are also required for the application. These expenses will include regular living expenses, utilities, phone, subscriptions, rent, debts and current loans. Credit limits are taken into consideration when lenders assess applications for credit ratings. The limit, not what is current charged to the card, is assessed as potential debt.
On the asset side, details of savings and other goods of value considered assets should be provided.
Identification can be provided with an Australian driver licence, passport or other acceptable forms of ID such as birth certificate or Medicare card. Holding a full driver or motorcycle licence is not an essential requirement.
If you are self-employed, tax returns for several years will be required with the ATO Notice of Assessment. If you are a business operator seeking commercial credit for a motorcycle you will need an ABN, ID and provide business financial documentation. To be eligible for business finance the motorcycle will need to be for use in the business operation under ATO rulings.
Credit scores are checked by lenders for both individuals and business. A good credit score is generally required to be eligible for a motorbike loan. Good scores attract better rates but applicants with less than good credit scores may also be approved for finance. We have a large selection of lenders and match customers with the most suitable lender.
When applying for a motorbike loan through Jade, your broker will assist you with completing your application form and advise all the documents you need to provide.
Are learner riders eligible for a motorbike loan?
Learner riders that meet ASIC and lender criteria can be approved for motorcycle finance and can proceed to purchase a LAMS approved model. Most manufacturers offer LAMS approved models in their range. If the learner rider does not meet the criteria as they are under 18 or are over 18 but do not have all the documents required, options are available to get finance for a motorcycle.
A very popular option for young and learner riders is to arrange a loan guarantor. A guarantor is a person who guarantees a loan for another person. The guarantor must meet all the criteria and be approved by the lender. Typically, young loan applicants will ask their parents or guardians to go guarantor for their finance.
The role of the guarantor carries responsibilities which the individual should consider before agreeing to the arrangement. These responsibilities including paying out the loan should the applicant not be able to do so. To qualify for a guarantor loan, the loan applicant must still be over 18 years of age.
Guarantor loans can provide benefits for younger people. They can provide the opportunity to start building their credit rating by making finance payments on time and allow them to purchase their own machine.
When taking on secured finance, insurance of the machine will be required. Insurance premiums for learner riders may be higher than for experienced and older riders.
Learner riders that are under the age of 18 will not be eligible for consumer credit and will need another person to take on a loan in their name for them.
Eligible? How to apply for a motorbike loan
If you meet the eligibility criteria then it’s time to apply for a motorcycle loan. Buyers have the choice of applying for their finance before or after they have committed to a purchase. Getting approved prior to purchase can offer the additional benefit of knowing how much you are approved to borrow. Buyers can also use our Finance Calculator to get estimates of loan repayments as a guide to the pricing of machines they can afford.
To start the application process, have your documents and ID ready to provide to our brokers. Applications for Secured Motorcycle Finance where the machine is being offered as collateral for the machine, details of the machine will be needed. When applying for finance before buying, an indication of the machine to be purchased can be provided.
We handle everything with lenders once we have your details. Applications can be made online or by phone. Conditional approval is often received within 24 hours and buyers can proceed to finalise their purchase.
To confirm if you are eligible for a motorbike loan, contact Jade Bike Loans on 1300 000 003.
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA IS PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
