Two Wheeler Loan in India

How to Get a Two Wheeler Loan in India

If you own a two-wheeler, then chances are you need a loan to buy new spares, get repairs done, or even just to tide over a difficult financial phase. Finding the right lender can be daunting but no more so than if you’re looking to borrow money. There are various ways to get two-wheeler loans that are generally difficult for most people to get. So, which lending website is the right one for you ? That’s what this article will answer. Read on if you want details on how much they charge, their eligibility criteria and other factors that may impact your decision.

Advantages of Availing a Two-Wheeler Loan.

Availing for a loan to purchase the bike that you have always wanted to benefit you in a number of ways. Some of them include:

  • Getting the fund that you actually need to buy the bike you want.
  • A guarantor or co-applicant helps to get the money you need.
  • Availing funds to purchase superbikes.
  • Availing affordable interest rates.
  • A wide period for loan repayment is provided.
  • Repaying loan with affordable EMIs.
  • Paying each EMI correctly on time and building your credit history.

Now that you have understood the major advantages of borrowing two - wheeler loans , here are some major tips that you also need to follow the two - wheeler loan application procedure.

Tips for a Successful Two-Wheeler Loan Application Procedure.

A few loan applicants have their applications also rejected by lenders. And that is not a pleasant feeling and might not be equally good for your credit score. Now you can refer to the list of tips as it can enable you to apply successfully for a two-wheeler loan. Also, then you can follow the next section that talks about major points that will enable you to improve your chances of getting a two wheeler loan.

These are as follows:

  • The Exact Loan Fund : Assessing your needs and calculating exactly how much loan fund you want you to buy the two - wheeler you want. You refrain from applying for an amount that is larger than what you need.
  • Eligibility and Comparing Options: After you have decided how much fund you need to borrow, then take a look at all the loan options that are available and you are equally eligible for. Refrain from applying for any loan that you don't qualify for. Then this will automatically let you get your application rejected. Also ,while checking your eligibility for a two-wheeler loan you should also ensure that you fulfill all the criteria.
  • Monitoring Credit Score: Your credit score is another most important factor that determines your loan approval status . Also, lenders can reject applications on the basis of low credit ratings. Also, if your credit history is poor, you should look at improving it before applying for the loan.
  • Getting a Guarantor: If your credit score is not up to the desired requirement of the lender, that you should get a guarantor or also a co-applicant. Having a guarantor or co-applicant with a good credit can only help you get the loan amount you actually want.
  • Fill your Loan Application Properly: Make sure that your application is fully filled with all the details of what actually your lender requires. An incomplete application or an application with any wrong information can also get rejected.
  • Providing all the needed Documents: While providing your loan application, you have to ensure that you have submitted all the documents the lender asked. If you don't submit the required papers, your application can lead to the prospect of getting rejected.
  • Applying for your Existing Lender: If you already have a good steady relationship with the bank, then you should try availing a loan from them. And a good standing is also very helpful when you get a loan even if you haven't fulfilled the requirements.

Now that you have understood the major advantages of borrowing two - wheeler loans , here are some major tips that you also need to follow the two - wheeler loan application procedure.

How can you Improve Your Chances of Getting a Two-Wheeler Loan.

After you have successfully applied for a two-wheeler loan, let's understand what you need to keep in mind while applying for one. Here are some points that can help you find the correct loan for you to avoid paying for more than you should.

  • Cleaning your credit: Lenders tend to pay a good amount of attention to your credit score while evaluating your loan application. Also, if you have a good or high credit score, you should have a better chance of availing the loan that you want.Hence, that's why monitoring the credit report becomes very crucial as then you can see if you have any errors displayed. So, taking essential steps to clean your credit up is absolutely necessary.
  • Balance your debt-to-income ratio: Comparing the debt-to-income ratio of your current debt situation to your current income is necessary . It shows how much of your monthly income is being used to pay off loans and bills currently. The lower this ratio is, the higher your chances of availing your loan are. Hence, look at paying off a few loans before applying for the same.
  • Get Co-Signers if Needed: Getting a co-applicant for your loan should help you get what you are actually looking for. This enables you especially if you have a poor credit score. But you can get another individual to guarantee the loan on your behalf. Keeping in mind that the co-applicant can also be held accountable if you don't repay the loan on time.
  • Multiple loans: Applying for multiple loans simultaneously, will lead the lender to realize that you might not take the loan they offer. This will make them reject your application. Also keep in notice that multiple rejections shouldn't hurt your credit ratings.

Remember these points while Applying for any Two-Wheeler Loan

Here, we will be discussing how many chances are there for you to improve your opportunity of availing a loan that is approved. Any Loan requirements can differ from one lender to another but also it may be hard to get the loan you are actually searching for. Here, are some suggestions that you can follow;

  • Researching well: This is the most initial step before you can apply for a motorbike loan. Make sure you do your research well. Comparing all the options that various lenders are offering to you. Comparing interest rates,repayment options, processing fees, and other loan terms. This will enable you to find the best and cheapest option.
  • Wisely choosing your tenure: The tenure of your loan will decide how much you can repay each month.Make sure that the EMI is affordable for you . That means you have to be wise about selecting the correct tenure. A shorter tenure will enable you to process the loan repayment faster. However, you should remember that the EMIs will be high. Hence, selecting the tenure according to how much you can afford to pay off every month without any sudden financial crunch.
  • An affordable interest rate: Your interest rate decides your overall cost of your loan. This will also have an impact on your EMI. Selecting your loan with a lower rate of interest can enable you to keep your EMIs low as well. Also it will make your loan way cheaper.
  • Analyzing floating rates with fixed interest rates: Some lenders offer you both floating interest rates with fixed interest rates. But floating rates change as per the transition in the market rates. Whereas fixed rates stay static irrespective of your market rate changes. That's why floating rates are usually lower than fixed rates.
  • Check EMIs before applying: While comparing your loan options, ensure that you compare the respective EMIs as well. Also choosing a loan that provides you with an affordable EMI with a convenient and flexible repayment period.
  • Ask about prepayment fees: Planning on prepaying or foreclosing your two-wheeler loan at any point, helps you find out the charges for the same. Some lenders may also end up charging you a fee for this while others might not. Prepaying your loan can enable you to save interest costs.
  • Read the terms and conditions properly: Reading your loan offer document properly and going through every single term and condition before you sign it is necessary. A fine print may reveal hidden charges and fees that can otherwise never be mentioned. Hence, knowing these terms can help you avoid paying heavy penalties.

So, if you are confused about the Dos and Don’ts for applying for a two wheeler loan then you should follow the next section.

Dos and Don'ts of Applying for a Two-Wheeler Loan

Let's now look at the dos and don'ts of applying for this loan.

Do's Don'ts
Have to research well before you apply Don't apply for too many loans at the same time
Ensure that you are eligible for the loan you are applying for Don't apply for a loan simply only because you get an attractive welcome gift
Analyze the interest rates and find the best option Don't forget to fill in the application form properly
Comparing processing fees and other charges Don't sign for the loan documents without having reading them thoroughly
Analyze your credit score before you apply for the same Don't choose an EMI you know you can't afford.
Submit all the required documents without any fail Don't forget to pay your EMIs correct time
Reading the offer document carefully before accepting the terms and conditions. Don't forget to prepay any of your loan if you can

Two-Wheeler Loan Eligibility

A two-wheeler loan helps you to buy a bike that you want or have always a requirement for. Two-wheeler loans are available for different sources, that includes banks and Non-Banking Financial Companies . But , you must ensure to meet certain requirements in order to be eligible for this loan. The eligibility criteria will vary from lender to lender.

Note :These are general eligibility criteria. Also, it might be an additional or different criteria requirement depending on which lender you can avail the loan from.

Two-wheeler Loan Eligibility Criteria

Lenders have certain eligibility criteria they expect you to fulfill before they process your application. These may vary from one lender to another. Some of the general eligibility criteria are as follows:

Requirements Salaried Individuals Self-employed individuals
Age Minimum - 21 years at the time of application Maximum - 65 to 70 years at the end of the loan tenure Minimum - 21 years at the time of application Maximum - 65 to 70 years at the end of the loan tenure
Monthly income Rs.7,000 Rs.6,000
Credit score Above 750 Above 750
Loan amount Up to 100% of the value of the vehicle Up to 100% of the value of the vehicle
Residential stability Must be staying at the current address for at least 1 year Must be staying at the current address for at least 1 year
Work experience At least 1 year At least 1 year

Two-Wheeler Loan Eligibility Top Lenders

The following table gives you the list of all the top lenders that currently offer motorcycle loans. You can also check out some of the eligibility criteria required by each of them.

Lender Age limit Minimum income
State Bank of India 21 years to 57 years Rs.12,500 per month
Bank of India Up to 65 years Contact the bank
HDFC Bank 21 years to 65 years Rs.10,000 per month
Union Bank of India 18 years to 75 years As determined by the bank
Punjab National Bank 18 years to 70 years Rs.10,000 per month
Bank of Baroda 21 years to 70 years As determined by the bank
UCO Bank 21 years to 60 years Rs.8,000 per month

Note: These criteria also change the discretion of each lender. The maximum age limit requirement is the age of the applicant at the end of the loan tenure.

How to Find Out your Two-Wheeler Loan Eligibility

You can also see if you can qualify for a bike or scooter loan by looking at the options accessible to you. Various sites compile a list of all the major lenders who may provide you with such loans at low interest rates.

You can compare the pros and cons of the loans as offered by different lenders and their numerous aspects. Now you can also analyze the interest rates, processing costs, the required minimum income, EMIs, and other factors. Now you can assist you in deciding the best option for you.

Also, you can analyze the loan's eligibility requirements. This can help you save all your time and effort of visiting each bank separately to learn about their loan application requirements.

Documents Required for Two-Wheeler Loan

These are the few documents required for two-wheeler loan. The documents required may differ from one lender to another. Every lender requires you to submit certain documents while applying for a loan. Some of the general documents required are given below:

Particulars Salaried Individuals Self-employed individuals
Identity Proof PAN card, voter's ID, passport, driving license PAN card, voter's ID, passport, driving license
Address Proof Utility bills, passport, etc. Utility bills, passport, etc.
Income Proof Salary slips, IT returns, bank statements Bank statements, IT returns, audited financial statements

Two-Wheeler Loan Interest Rates

Planning on taking a loan to get the bike you desire? Before you are applying for one, then you have to take a look at the interest rates that are offered by some of the top lenders in the country. The interest rates on these types of loans range anywhere between 9.55% p.a. to 23.50% p.a.

Two-Wheeler Loan Interest Rates 2022

The following table helps you compare the interest rates and processing fees charged by lenders in India along with their respective tenures.

Particulars Interest Rate Loan Amount Processing Fee
State Bank of India 16.75% to 18.50% p.a. Rs.20,000 to Rs.3 lakh 2.00% of the loan amount + GST (minimum of Rs.1,000)
HDFC Bank 14.50% p.a. onwards Contact the bank 2.5% of the loan amount
Punjab National Bank 9.55% p.a. onwards Up to Rs.10 lakh 0.5% of the loan amount subject to Rs.500 to Rs.1,000
Union Bank of India 10.80% onwards Up to Rs.10 lakh Contact the bank
Axis Bank 12.00% to 23.50% p.a Rs.25,001 onwards 2.5% of the loan amount

Factors that affect two-wheeler loan interest rates

Now provide a glance at the various factors that impact the interest rate of your two-wheeler loan:

  • Your Credit Score: Credit score has the ultimate power to determine your interest rate. Many lenders have a fixed predetermined rate for these loans. However, having a good credit score may help to get a lower interest rate. On the other hand, if your credit score is not upto the mark, the lender will most likely may ask you a higher interest rate.
  • Your Income Level: Every lender has a particular level of income they are expecting you to earn per month. The higher your income is, the lower risk you have in repaying your debt . This usually means that you will get a favorable interest rate. If you earn a lower level of income, you may be given a higher rate of interest rate
  • Place of Work: The organization where you work or the organization you work for may have an influence in the interest rate you're given. A reputable company means that you have a good job and that you're possessing a stable income. This may transform into lower rates of interest .
  • Your Nature of Employment: Lenders may also offer interest rates based on whether you are self-employed or salaried.
  • Your Age: Your age has a major influence on determining your interest rate. For example, if you're closer to your retirement, your loan may cost you more. This is also because being closer to the retirement age usually means your capacity to repay a loan will be lower.
  • Existing Relationship with the Lender: Already if you have an existing relationship with the loan provider, then it may help you get a better rate of interest. A good relationship with a bank can only get you better loan terms.

Consider remembering these things other than the Interest Rates:

  • Processing Fee: A processing fee is a one-time charge that your lender will levy for processing your loan application. This can impact your monthly repayments. So, even if you get a loan with a low interest rate, your processing fee has the power of increasing your costs . You should go for a lender that gives you a low interest rate along with a reasonable processing fee.
  • Eligibility Criteria: Each lender will have a proper eligibility criteria that you can expect to fulfill before even they process your loan. Some lenders may have more stringent criteria compared to others. NBFCs might have the least stringent criteria. You can also choose a lender whose criteria you can easily fulfill. As ,this should help you get your loan without any hassles.
  • Prepayment Charges: Prepaying your loan can enable you to save money on interest rates . However, many lenders charge a fee if you want to prepay or foreclose your two wheeler loan. Also, compare these charges if you are planning to prepay or foreclose your loan in the future. This can also enable you to find out if foreclosing a loan can be very beneficial or not.
  • Other Charges: Ensure you read the loan offer document thoroughly and find out every other cost there can be found. This also helps you avoid many surprises that can charge you in the future. Also, it can help you search the actual cost for your loan.
  • Disbursal Time: The time that lender gives you the money from the time you apply for it. You can find out how much time various lenders take to sanction the loan. This can also help you in case you are in a major hurry to avail a loan to buy your two-wheeler.
  • Customer service: This is something many borrowers fail to when you are applying for a loan. A lender prefers to have good customer care service that answers your queries in the future. Not having good customer service can be extremely nerve wrecking.
  • Discounts offers: Keep an keen eye towards periodic discounts or special rates and loan conditions that various lenders are offering . Many lenders are trying to give customers special offers especially during festival seasons. Availing these offers can help you get better rates of interest, better along with repayment options, and other loan terms.

Reasons should you Compare Interest Rates before applying for a Two-wheeler Loan?

The major reason to analyze and compare the interest rates of the loan options available to you is to know how much each one will cost. This will enable you to calculate how much you will have to repay each month.

Comparing various loans can enable you to get the cheapest option that is available. Comparing other parameters such as the processing fee along with the repayment tenure will help you find a loan that best suits your current needs.

Which is Better, a Variable Interest Rate VS Fixed Interest Rate ?

Sometimes, when you are applying for any bike loan, your lender should give you the option of choosing between any variable rate of interest and then a fixed rate of interest. In such cases, what can you choose?

The choice between a fixed rate and a variable rate usually depends upon the level of risk related to each.

Fixed interest rates are usually higher compared to variable rates. Also, fixed rates remain the same even after market rates change.

On the other hand, variable interest rates change depending upon market conditions. Rates linked to the Marginal Cost of funds-based Lending Rate can change every time if RBI makes a change in the repo rate as well.Hence, your rate could either increase or decrease with the passing of time. That being said, variable interest rates are usually lower compared with fixed rates.

Two-Wheeler EMI Calculator:

A unique EMI calculator can enable you to get exactly what your EMI should be. The tool helps you find out how much you should repay each month within a few minutes. The steps will show you ways to use this tool are mentioned below:

Firstly, you just need to input the amount of funds you want to avail, choose the interest rate that is charged by the lender, along with the tenure of the loan.Secondly, you can select whether or not you intend to prepay parts of your loan. Also, now you can type in any processing fees that you might have to pay.Thirdly, you need to hit 'Calculate'. Your EMI will be displayed in a few seconds. Now , you will also get the table for your loan. This table will also display how you have to repay the loan over the tenure you have chosen.The table will display you the interest and principal components of each EMI along with how much interest you will have to pay over the loan period. This also enables you to find out how much the loan will cost you.

How does the Two-Wheeler Loan EMI Calculator Work?

Every EMI calculator web portal has a user-friendly loan that will enable you in understanding the EMIs for buying a bike with a loan. Most recommendations suggest knowing your exact EMI amount before you actually apply for a loan.

This also ensures that you will have a smooth borrowing process without any financial struggles. You should be able to select the right loan amount as per your repayment ability and the interest rate. The procedure mentioned below is the way to calculator is given below:

  • First, you will have to choose the loan quantum or amount by simply your cursor on the calculator.
  • Second, you have to key in the interest rate in the dedicated field.
  • Third , you will have to choose the tenure for repaying the loan.
  • Fourth step , you will have to give your processing fee information .
  • Now you can ‘Calculate’ to proceed to know the monthly payments.

Now within a few seconds, you can see the EMI amount. Now you can also enter various details and get different results. You can also then compare multiple results and then make a final decision regarding your loan. Under this EMI calculator, you can also get proper needed information about your amortization.

For your convenience, the table given below shows the various EMI amounts for multiple loan amounts and tenures:

Loan amount (Rs.) Interest rate (Mean) Processing Fee (Rs.) EMI for 1 year (Rs.) EMI for 2 year (Rs.) EMI for 3 year (Rs.) EMI for 4 year (Rs.) EMI for 5 year (Rs.)
50,000 11.10% 500 4,421 2,333 1,639 1,295 1,090
1 Lakh 11.10% 500 8,843 4,665 3,279 2,589 2,179
2 Lakh 11.10% 500 17,686 9,331 6,557 5,179 4,358
3 Lakh 11.10% 500 26,528 13,996 9,836 7,768 6,538
4 Lakh 11.10% 500 35,371 18,662 13,114 10,358 8,717

Know Why Should One Utilize a Two-Wheeler Loan EMI Calculator?

Two-wheeler loan EMI calculators are very useful as they allow you to plan your loan expenses in greater detail. A two-wheeler loan EMI calculator is a simple web tool that you can use very easily without with no prior knowledge of finance.

Now you can a look through some of the important reasons for using a bike loan EMI calculator:

  • You can ensure your loan amount and tenure by knowing your exact loan EMI amounts with the help of the calculator.
  • With the help of a loan EMI calculator, you can also check out amortization details properly . Also you can see how much you will expense on your principal amount and how much you will end up spending on your interest. Now you can also see the exact distribution of your loan payment.
  • The key in different interest rates charged by various lenders. This way, you are now able to understand your loan expenses especially when you select a certain lender.Also you can compare among different EMI results for several loan amounts, tenures, and interest rates. After making the comparison, you can choose your lender.
  • You will also be able to understand the fundamental elements of your two-wheeler loan. Along with how much you are spending on buying your dream two wheeler or dream bike. With detailed knowledge, you should also be able to negotiate well and get a good loan deal.

Getting your dream two-wheeler can be a very exciting experience. Understanding the product and the monetary components assist you in signing up for the right two-wheeler loan along with will help you enjoy the best of your new motorcycle.

Ways to calculate two-wheeler loan EMI

Your EMI will enable you to know how much you should repay the bank each month. The EMI usually depends mainly on the loan principal amount, the interest rate, and the tenure you have chosen. Your processing fee along with prepayment patterns will also play a role in deciding your EMI.

It is always apt to find out what your EMI will be prior to you applying for your two-wheeler loan. Comparing various loan EMIs enables you to identify the cheapest and most suitable loan.

Two wheeler loan calculator is a unique repayment calculation tool that enables you to find your EMI within a matter of minutes. Some of this type in your parameters and get your EMI along with the loan amortization schedule quickly.

Also, if you are a student , and you are planning to take a two wheeler loan for students , then you can follow the section below; to explore more in the subject.

Two-Wheeler Loans for Students

A two-wheeler is one of the most utilized modes of transport in India and has potentially become a major commodity for the average Indian's daily traveling . India is one of the biggest manufacturers of two wheelers in the world and is also one of the best markets for small to medium capacity two wheelers as well . Many manufacturers from all over the world have initiated operations in the country along with have designed many models to suit Indian roads.

New models enter the markets, many banks also decide to introduce loans for two wheelers with different eligibility criteria, so that they will be able to provide for every segment of the market. A demographic among which two wheelers have become popular are the students, but most students usually do not have enough finances to purchase a new two-wheeler, for this very purpose, some banks plan to give you two-wheeler loans to students under particular special conditions, as they are not yet the earning members of society. In this section the various factors a student will need to fulfill to be eligible for a two wheeler loan is in focus , along with the applicable interest rate along with other charges as well.

  • The repayment period for a two-wheeler loan provided to a student is 3 years.

  • The income requirement for the co-applicant is that high..

  • The student has to give a co-applicant/guarantor to borrow this type of loan.

  • Then banks take up to 3 days to process and analyze the documents.

  • Two-wheeler loans are only for students who are unsecured.

  • There are no restrictions on this type of vehicle, as such for the student who can purchase by availing this kind of a loan.

As a student , or as a working professional or self employed individual you can still apply for a two wheeler loan with the help of a personal loan.

How personal loan can help you get a new Two-Wheeler Loan

As its lightweight, speed, and ability to help riders to go forward quickly between locations, that's the major reason why two wheelers are the most popular forms of transportation and communication in the country.

You can avail of a loan to make it easily accessible for you do not have enough money to get a new bike or if you don’t want to use your savings for the purchase. To get a brand-new scooter or motorcycle, you can also avail for a personal loan or two-wheeler loan. In India, banks and Non-Banking Financial Companies (NBFCs) both gives these two loan categories.

Benefits of Purchasing a New Two-Wheeler through a Personal Loan

Taking advantage of having a personal loan online is now very easy. That refers to the fact that while you are asking for a loan, you are basically not required to provide any security or collateral. On top of that, personal loans are very reasonable in terms of interest rates . Hence, buying a bike will result in little overall borrowing rates.

You can also ensure that you are able to manage your own other monthly expenses with sound financial strategy . The best part about a personal loan is that you don't have to ask your lender if you're using the money to buy a bike or something else.

If you are looking forward to buying a premium bike, or daily-commuter scooter, a sports bike or an adventure bike, you can avail a personal loan to purchase it. Also, even if you want a brand new two-wheeler , you can take a personal loan.

Main 8 reasons to purchase a two-wheeler with a personal loan

  • On-Road Price:When you take a personal loan to purchase a new two-wheeler, you can enjoy 100% financing of the on-road price. Also this is a great growth as most lenders offer only up to 90% finance. This way, you do not have to worry about any ways of making down-payments for your loan. If you are planning to buy a vehicle with a two-wheeler loan, you will mandatorily have to make a particular down-payment.
  • No Need for Making Down Payment:While availing a two -wheeler loan you will definitely need to make a down payment . Also you might ask to decide on the down payment after successfully negotiating with the lender. Mostly , they provide financing only for 80% to 90%of road vehicles. On the other hand, when you plan to take a personal loan to get a bike , you should not require to make any down payment. Also,you can get full satisfaction for your bike's price.
  • A Loan even if you do not have any Credit History:Generally, one buys his or her first bike right after college or when they get their first job. During such times, one may not have any credit history as the person would not have applied for any form of credit till then. While applying for a two-wheeler loan, your lender would most certainly ask for details about your credit history or for a CIBIL score. Without a good credit history, you may not be eligible for a bike loan. You can await for a few years to construct a decent credit score, and then applying for a two-wheeler loan can help . Alos. You can also apply for a loan online. As, lenders might ask for CIBIL scores even for personal loan applications. However, certain lenders may agree to provide you with an instant personal loan after monitoring your employment status, income details, employer's details, employment status, investments, etc. If that particular lender is satisfied with your present financial profile and is sure that you will be able to repay the personal loan on time, then your personal loan application has a high chance of being accepted. Also you can use it to finance the vehicle of your choice.
  • No need for Hypothecation of the Two-Wheeler:Generally, when you use a two-wheeler loan to purchase a bike, the bike will be assumed as security. This refers to the fact that you are capable of furnishing the ownership of your new bike with your bank or NBFC. After you have completed making the full payment, you will have the ownership of the bike after the step of transferring the ownership is done. For a bike, the financial institution mostly asks to go through a long documentation process at the RTO. But you might be required to spend money on this process as well.After you have done your payment off the two-wheeler loan completely, you will have to get a NOCfrom your lender, mandatorily . Generally, The NOC charges are pretty high.Also, if you want you can simply take a personal loan, that you would not have to worry about any tedious pledging process or additional charges. You can get to save money and time by going for this simpler option to buy your new vehicle easily. A personal loan is usually processed by paying only a processing fee, which usually can be up to 2% of the personal loan amount. This fee is different from lender to lender.
  • Low Interest Rates: When you choose a personal loan for buying your scooter, the rate of interest will typically be low. Whenever compared to a two-wheeler loan the interest rates are usually lower for a personal loan. However, the interest rate for bike loan will be decided by only your income , loan amount along with tenure and age of the vehicle . If any of these elements are not present then they won't meet the eligibility criteria for the lender. Hence they will charge with high interest rates. As interest plays a major role in your overall expenses , if your interest is lower than your loan expenses should be low to equate with your EMIs . But ,if your rate of interest is high then your loan expenses will be more if your loan expenses will be equally high. Now if you are looking forward to borrowing an affordable personal loan to purchase your dream bike, a personal loan can be the best answer to fulfill your wish and aspirations . The age of your vehicle and bike specifications won't matter.
  • Eligibility for Personal Loans: There are many simpler types of two-wheeler loans. For a two-wheeler loan, the least requirement of income is slightly higher. But a decent monthly income can help you manage your monthly installment amounts very easily and effortlessly especially when you take a personal loan. Hence, with a good personal loan deal , you can buy an awesome bike that you have been watching from far every day in your nearest bike showroom or online.
  • Smaller Tenure for Personal Loans: When you go for a personal loan , you can also enjoy shorter tenures. Tenured for personal loan usually for from six months to five years. Whenever you choose for a shorter tenure , no one can force you to pay interest for too many months. You can pay off your personal loan by being a little financially well managed .This way , you can also save your shorter tenure with lesser interest to pay.

You can also if you are willing to get a two - wheeler loan for a personal loan for getting your motorcycle or scooter. Now loan is applicable from personal loan both online and offline . To apply online you should visit the official websites of lenders or third party financial websites. You can also compare personal loan interest rate ,penalties, and other features on the internet itself. Once you make a decision, now you can apply for a loan, and then buy your bike. To apply offline, you should visit any branch of your lender and an executive will provide you with the details and help you apply.

It is necessary to ensure an easy and speedy loan application procedure. You should get a speedy and easy loan application process by keeping all your documents prepared. You can also upload your documents online with the majority of lenders and financial platforms . This is also great as it elevated simplified , paperless transactions . After the application gets approved and disbursed , you can purchase your favorite bike and have an amazing time with a good ride.

Hence, other than applying for a two wheeler loan with personal loan you can also go for another alternative ,i.e., zero down payment for bike loan.

Zero Down Payment Bike Loan

No down payment of bike loan is a facility that is provided where the lender as a loan can offer 100% of the on-road price of the two-wheeler . Also apart from the processing fee, no down payment should be processed.

You can also have a detailed look at why does this zero down payment bike loans are a beneficial option

Benefits of zero down payment bike loan

Some of the benefits of a zero down payment bike loan are given below:

  • You might not have to go through the chaos of arranging money to finance a two-wheeler. The lender can also help you finance the cost of the vehicle, by following deals that are repayable for your loan in easy Equated Monthly Installments .
  • Liquidity is not at all affected.

Procedure to Apply for zero down payment bike loan

You can get in touch with a customer representative of the lender to ask for better details of the zero down payment bike loan. You will have to also submit the necessary documents along with application to the lender. After completing the verification properly , the lenders will mostly sanction the loan.

Also, there is another alternative other than applying for zero down payment bike loan, that is apply for second hand bike loans. You can follow the next section to know more about this.

Loans for Second Hand Bike

The price of a new bike or scooter is very high and hence if you are looking to avail a loan for the same reason then this might not be financially feasible for you. Hence, in such cases , you can look around to buy a two wheeler i.e second hand . The price of that vehicle might be lower and that you can take a loan for the same. There are multiple lenders in India who are eligible to offer second hand two-wheelers for their customers. The next section will talk about the features of second hand two wheeler loans to clear all your doubts.

Features that Second-Hand Two-Wheeler Loans provide.

  • Loan Amount:Multiple lenders provide you with a loan that is upto Rs. 10 lakh. However, the loan amount you can borrow for yourself will depend on various factors such as the price of the vehicles , repayment tenure , your credit score, etc.
  • Interest Rate:Lenders in India offer many such attractive interest rates especially for second-hand bike loans. The interest rates can vary from lender to lender also you can monitor with them to understand if they are feasible for you.
  • Tenure:The tenure period that they offer is a maximum of 5 years in India.
  • Eligibility: The minimum age of eligibility can be 21 years. Also ,in many such cases, you can also borrow a two-wheeler loan if you are 18 years, while you have the maximum age of eligibility is 65 years.
  • Income Month Wise: A certain amount of money you have to draw out on a monthly basis as your salary. Many such lenders may ask you to earn a minimum of Rs.12,000 per month, some also consider that you are eligible for loan if you withdraw a minimum amount of Rs.18,000 per month.
  • Processing Fee:Once you have taken out a loan , the lenders might ask you to pay a processing fee. However, although for second - hand bike loans , some banks might not charge you a proper processing fee also that other lenders may ask one.
  • Pre-Closure charges :You might need to pay a charge that is known as a pre-closure charge on taking a second-hand bike loan, as you can choose to repay the loan prior to the completion of tenure.

Major Points to Keep in Mind Before Going for a Second-Hand Two-Wheeler Loan

The next section mentions below the list of things that you must need to keep in mind before you apply for a second-hand two-wheeler loan:

  • Keeping a Budget:The loan amount that you want to avail must be within your budget so that you can repay it with easy EMIs.
  • Having a Healthy Credit Score: Ensure that you have a healthy credit score if you are looking to avail a loan then having a good credit score can make it easier for the lender to sanction your loan application and get quickest approval.
  • Different Loan Options:Compare the different two-wheeler loans that are offered including the rate of interest along with other benefits provided to see which of them is suitable for you as per your requirements.
  • Get a Trustworthy Lender:Looking to borrow a loan from a lender who is trustworthy and provides a variety of loan options to their customers. Many will recommend that you take a loan from a bank account where you have an existing account with, the lender may ask you for a loan at a lower interest rate and help you with the repayment procedure.
  • Go Online: Applying for a loan online is easy and very much hassle-free and only needs a few minutes for the application process to finish. If you are not comfortable applying online, you can also opt to visit your bank's nearest branch to apply offline.

How to Apply for Second-Hand Bike Loans


You can duly go to the nearest physical branch of the bank from which you wish to borrow a second - hand two - wheeler loan. You can also fill in the application form and submit it with the necessary documents. A bank representative can help you with the application procedure.


Applying online is very convenient by visiting the lender's website and then submitting all the documents with the application form. After you submit all the documents , the bank will also verify them, and if they are legitimate they will sanction your loan as quickly as possible.

Now that you know how to apply for second hand bike loans , you can easily apply for the same by following the details mentioned above . But what if you have a low credit score, can you still apply for second hand bike loans ?. The answer is discussed in the next section.

Two-Wheeler Loan with Lesser CIBIL Score

Two-wheelers are a well known need for commuters in India . Bikes are cheaper if compared to cars and are also quicker to move through traffic. Almost all banks and Non-Banking Financial Companies also offer two-wheeler loans at attractive interest rates.

The process to apply for a two-wheeler loan is simple and usually most of the lenders provide the option to apply for a loan online.Also, it is important to have a good credit score to borrow a two-wheeler loan at an attractive interest rate. In case your CIBIL score is lesser , then the two-wheeler loan application can face rejection or might have high interest rates.

Why your Credit Score may is Low

The major reasons why your credit score might be below are mentioned below:

  • Multiple Credit Applications: In case you are applying for multiple loans or credit cards to various lenders and they get rejected, it could also lead to a drop in your credit score.
  • Missing Payments:Your credit score doesn't follow a proper payment on time than you do not pay any bills by the due date.
  • Credit Card Payments:It is significant that the entire credit card bill payment is done within the due date. Any outstanding amount is referred to as overdue. Your credit score will come under if the overdue amount increases.
  • Delaying payments : Failures to pay your credit card or loan Equated Monthly Instalments (EMIs) regularly will definitely influence your CIBIL score negatively.

You will also need to meet the eligibility criteria to apply for a two-wheeler loan in low cibil score. Also , you can check the next section that talks about availing two - wheeler loans with lower cibil score.

Procedure to avail a Two-Wheeler Loan with a Lesser CIBIL Score

There are multiple ways by which you avail a two-wheeler loan if in case your CIBIL score is low are mentioned below:

  • Co-Signer:A co- guarantor is an can assist you get a bike loan in case your credit score is not upto mark. However, the credit score of the co-signer is also liable to help get the loan amount you are asking for . Make sure that your co-guarantor is responsible for the repayment of the loan.
  • Compare:If it is necessary to have compared lenders before opting for a particular loan . Various lenders provide loans even if your credit score is low. But , the lender might ask you for higher interest rates. Comparing it with enders will ensure that you gave a two-wheeler loan with good terms and conditions.
  • Negotiating the Terms:If you negotiate the terms of the loan in case you have missed any payments earlier. Negotiating the lending terms should help you in the long run.
  • Higher Down Payment:In case your CIBIL score is bad, you have to make a higher down payment. Banks offer up to 90% of the price of the bike as a loan and the remaining is kept as down payment . In such cases your credit score is not up to mark , then the lenders may provide a loan to make a higher down payment.

There are other ways by which you can get a two-wheeler loan even if the CIBIL score is lesser . However, if you maintain a good credit score it can help you in getting a bike loan with low interest rates along with the best terms and conditions.

So, after you have applied for the loans there are various ways to monitor your two wheeler loan status . Hence, the next section will discuss ways you can track your two -wheeler loan status.

Ways to Monitor Two-Wheeler Loan Status

In any case, if you are planning to apply for a two-wheeler loan, almost all banks and Non-Banking Financial Companies provide the option to check the status of the loan online. Apart from visiting the official website of the lender, you can also monitor the status of the two-wheeler loan by calling the customer care number of the lender or by physically visiting the lender branch.

Monitor the Two-Wheeler Loan Status - Online

The lender, the process to check the status of the two-wheeler loan might vary. The process to check the loan status on the official website of HDFC Bank, Tata Capital, Axis Bank are mentioned below:


Step 1: Visit the bank site

Step 2: Provide the Application Name or Reference Number.

Step 3: Provide the Date of Birth or Mobile Number.

Step 4: Press on ‘Submit’ to check the application status.

Tata Capital

Step 1: Visit tata capitals official website

Step 2: Select the ‘Mobile Number’ or ‘PAN’.

Step 3: Also you can opt for a mobile number, enter the number.

Step 4: Press on ‘Send OTP’.

Step 5: Provide the OTP that is forwarded to the registered mobile number.

Step 6: Also, you can opt for PAN, enter the number and then click on ‘Submit’.

Step 7: After the details have been verified, the status of your two-wheeler application.

should display on the screen.

Axis Bank

Step 1 : Vist the Axis Bank website

Step 2: Choose ‘Customer’ and press on ‘Proceed’.

Step 3:Now, provide the mobile number.

Step 4: Now finally you can Click on ‘Submit’ to monitor the status of the application.

Monitor the Two-Wheeler Loan Status – Offline

Check the status of your application for a two-wheeler or by going to the lender's branch and take the step that is most convenient for you. Now you can also verify the loan's status, the basic information must be given.

Monitor the Two-Wheeler Loan Status – Customer Care

Check the status of your application, by calling the lender's customer service line. The customer service representative will also inform you the status of the two-wheeler loan once all necessary information has been provided.

Monitor the Two-Wheeler Loan Status – SMS

Particular lenders allow you to monitor the status of the two-wheeler loan via SMS as well. However, the SMS has to be sent via registered mobile number.

Hence, now that you know various ways to monitor your two wheeler loan status . You can now move to the next section to understand major facts about loan wheeler statements .

Two Wheeler Loan Statement

Non-Banking Financial Companies and banks also offer two-wheeler loans at unignorable interest rates with an extremely flexible repayment tenure. Unlike earlier days , now the process to get a bike loan is even simple and there are several lenders offering the option to apply for a loan online.

After you have availed a two-wheeler loan, it is very important that you monitor the loan statement to manage the loan effectively. Several details are such as the number of payments due and the number of payments that will be mentioned in the statement clearly. Monitoring the statement will also make sure that you do not pay any additional charges.

Details for two wheeler ( Bike ) Loan Statement

The details that are mentioned in the two-wheeler loan statement are mentioned below:

  • Statement Number:The statement number will display the total statements that you have been forwarded . The statement number will be different once a new statement is generated.
  • Equated Monthly Installments :The number of EMIs that they have been paid and the number of EMIs you are due will be provided in the bike loan statement. It is important that you monitor this information as penalties for any missed payments.
  • Balance: After an EMI has been paid, the pending balance will get reduced. You can find out the total amount after checking the statement.
  • Rate of Interest:The interest rate that is provided on your two-wheeler loan will be provided in the statement.

Merits of two wheeler ( Bike Loan) Statement

Some of the main merits of the bike loan statement are as follows :

  • Payments can be Tracked: In many cases payments are missed that you can be asked to pay for penalties. Monitoring the statements will help in tracking the overall number of payments that you have made and the number are due.
  • Future EMIs: You can monitor the number of payments due by checking the statement of the bike loan . Tracking the bike loan statement will assist in planning your future payments.
  • Additional Fee:Additional fee has been charged, after you have done the checking through the loan statement. In the case of any errors, you can contact the lender directly to rectify them.

Various Ways to get the Two-Wheeler Loan Statement

The different ways by which you can get the bike loan statement are mentioned below:

  • Visiting the Branch:You can also get a physical statement by visiting the bank branch.
  • Customer Care: You can also contact the bank's customer care to get the two-wheeler loan statement through mail.
  • Email:You can also forward an email to the bank by requesting for the bike loan statement.
  • Net Banking: You can log in to the net banking portal by downloading the two-wheeler loan statement.

Hence, you should remember the importance of monitoring the loan statement to manage the loan effectively. Also, you visit the next to know more about states that offer most subsidies for electric vehicles.

States Offering Most Subsidies for Electric Vehicles

India is approaching to become very popular for electric vehicles as several initiatives are being taken with a number of initiatives. Earlier due to the lack of infrastructure the individuals have to rely on two wheelers that come with internal combustion engines,

The Central Government as part of the FAME-II scheme has also put forth various offers . Apart from the benefits under the FAME-II scheme, each state has to offer various policies to make sure that the prices of electric two-wheelers are getting reduced . Each state follows a different criterion when it comes to offering benefits on electric vehicles.

Depending, also on the size of the lithium-ion batteries, subsidies are also allotted by various states on electric two-wheelers. Presently, the higher the subsidy is provided in Delhi, followed by Maharashtra.

The subsidies that are offered by different states are mentioned in the table below:

State Exemption of Road Tax Maximum Subsidy Per kWh (battery capacity)
Andhra Pradesh 100% - -
Madhya Pradesh 99% - -
Telangana 100% - -
Tamil Nadu 100% - -
Karnataka 100% - -
Kerala 50% - -
Uttar Pradesh 100% - -
Odisha 100% Rs.5,000 NA
Rajasthan NA Rs.10,000 Rs.2,500
West Bengal 100% Rs.20,000 Rs.10,000
Assam 100% Rs.20,000 Rs.10,000
Gujarat 50% Rs.20,000 Rs.10,000
Meghalaya 100% Rs.20,000 Rs.10,000
Maharashtra 100% Rs.25,000 Rs.5,000
Delhi 100% Rs.30,000 Rs.5,000

Now that you know about the subsidies offered by different states , then you should also know about the impact of GST on Bikes. So the next section talks about just that.

GST Impact on Bikes

Since the introduction of GST, several sectors have seen a benefit. One such sector is the two-wheeler industry. Earlier, the tax rate was 30%, however, with the introduction of GST, the tax rate has fallen to 28% for two-wheelers with an engine capacity of less than 350 cc. Two-wheelers that come with an engine capacity of more than 350 cc, the GST is 31%.

Several bikes such as the Royal Enfield have seen prices fall by up to Rs.7,000. The prices will vary on the place the bike is purchased and the model. Bikes above 350 cc have also seen their prices been affected. However, bike prices have fallen with the introduction of GST when compared to the previous tax system.

GST Rates

Category GST Rate
Two-Wheeler Insurance 18%
Gauge Oil Level, Brake Pads, and Clutch Cable 28%
Battery Charging, Consumables, and Lubricants 18%
Two-Wheelers - Engine Capacity more than 350 cc 31%
Two-Wheelers - Engine Capacity less than 350 cc 28%

Hero HF Deluxe

Before GST, Hero HF Deluxe's ex-showroom price was Rs.42,830 (Delhi). The displacement is 97.2cc, and after the tax, the bike has been reduced by 3%-5%. The new ex-showroom price of the bike was Rs.41,545, with the GST tax .

Hero Splendor

It is affordable and will fit in almost everyone's budget. Before GST, the ex-showroom price was Rs.48,280 in the national capital. The bike price was reduced by 3%-5% and was at Rs.46,349 post GST.

Hero Glamour

The displacement of Hero Glamour is 124.7cc and the ex-showroom price of the bike in Delhi was R.56,655. The new ex-showroom price was around Rs.54,389.

Hero Passion

Before the GST , the ex-showroom price of the bike was Rs.52,605 in Delhi and the engine capacity was 97.2cc. The Hero Passion ex-showroom price post GST was around Rs.49,974.

Honda Dream Yuga

The Honda Dream Yuga comes with a 124.7cc and the ex-showroom price was Rs.51,977 pre-GST. The price of the bike was around Rs.50,418 after the introduction of GST.

Honda CB Shine

The Honda CB Shine price was Rs.56,268 along with the engine capacity was 124.7cc. After the GST, the new ex-showroom price of the bike was around Rs.53,736.

Bajaj Platina

Bajaj Platina has 100cc displacement along with the ex-showroom price was Rs.45,985. The ex-showroom price after GST was around Rs.44,606.

Honda CB Unicorn 150

Honda CB Unicorn 150 with an engine capacity of 149.1cc and the ex-showroom price was Rs.70,503. The new price is around Rs.68,388.

Royal Enfield Classic 350

The Royal Enfield before the GST, the ex-showroom price was Rs.1,34,919. Post-GST, the ex-showroom price was Rs.1,30,197.

Bajaj Pulsar

Bajaj Pulsar was Rs.92,200 and has a displacement of 220cc. After the GST, the bike's ex-showroom price was around Rs.88,512.

Summing up

After you have availed the desiring two-wheeler loan, it is important that you monitor the loan statement regularly. Checking the statement will help you find the outstanding balance, and rectify any errors, and plan your future payments at the earliest.


A two- wheeler loan is a type of personal loan that need not pledge any collateral. Availing one is easy – you can apply online – and you can use the money to meet almost any expense.

You can apply for a two-wheeler loan if you wish to purchase any of the below cases:

  • Second hand bikes
  • Showroom bikes
  • Racing bikes, and so on

Getting approval on the two-wheeler loan online via Buddy Loan is easy.

Please keep the latest documents required by the lending company. The eligibility criteria differ marginally with different lenders.

However, most often the approval is mostly dependent on the credit history. The better the credit history, the quicker the approval.

With Buddy Loan two - wheeler loan, post submission of the application, the applicant will receive an acknowledge within 15 minutes.

Buddy Loan aggregator has the easiest application process for two-wheeler loan. However, the minimum salary required for the availing a two-wheeler loan is Rs. 20,000/-

To avail a two-wheeler loan, you only need to meet the basic eligibility criteria.

  • You must be a citizen of India
  • Aged between 23 and 57 years
  • Employed with an MNC, public or private company, self-employed too.
  • As long as you meet the salary requirements as specified based on your city of residence, you qualify for a personal loan.

To avail a personal loan for two-wheeler, you will need to submit the following documents:

  • Proof of Identity: Passport / Driving License / Voters ID / PAN Card (anyone)
  • Proof of Residence: Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (anyone).
  • Proof of income: Latest 3 months Bank Statement (where salary/income is credited).

One can use the handy two-wheeler loan EMI Calculator to determine your monthly installments.

No, Buddy Loan does not have any pre-payment charges whatsoever.

The applicant can borrow up to Rs.15 lakhs without pledging any asset. You can repay your loan over flexible tenures ranging from 12 months to 60 months.

Buddy Loan aggregator offers two-wheeler loans with a range of attractive benefits including:

  • Instant approval
  • Minimal documentation
  • Flexible tenures
  • No hidden charges

Complete the application form online and avail your two-wheeler loan now.