Things To Know While Comparing Two Wheeler Loans


If you are planning to buy a two-wheeler in the near future, you must know that the easiest way to arrange money for your bike without burning a hole in your pocket is to go for a two-wheeler loan. 

Numerous leading NBFCs and lenders like Bajaj Auto Finance are ready to finance your motorcycle with lucrative repayment schemes. To avail the best possible finance for your bike, it is necessary to understand several factors associated with a bike loan and compare them on various grounds.

What Is A Two-Wheeler Loan?

A Two wheeler loan or a bike loan is a financing method through which a lender lends you money that you require to purchase your bike at a specific or floating rate of interest. 


A good thing about bike loans is that you need to pay a small part of the bike’s total price as a down payment, and the lenders are ready to disburse around 80 – 85% of the cost.


A bike loan interest rate can vary between 7% – 17%, based on the lender and their lending conditions. You can always use a reliable bike loan EMI calculator to get more information about the EMIs, which you will need to pay back as part of the loan repayment.


Documentation Required

Any loan requires some documentation, and a good thing about the bike loans because they need minimal documentation than the other categories of loans. A typical two-wheeler loan application requires you to produce your last six months of bank statements, last year’s ITR document, ID proof, address proof, etc. 


Applicable Interest Rate

After you have collected the required documents, the next thing that you need to consider is the applicable interest rates through various lenders. As mentioned earlier, two-wheeler loans in India vary under a window of 10%, thereby making it a useful yardstick to compare the different bike loans.

As a matter of fact, various lenders offer variable interest rates, and the onus is upon you to choose the one which suits your requirements. It has been observed that there’s a standard balance between the interest rate and repayment tenure. 


For example, a lower interest rate is associated with a longer tenure which refers to a longer loan burden, and you can adjust the inflation rates to get a clearer picture. Using a bike loan EMI calculator can be the best option for this.


Available Loan Amount

You might have seen two-wheeler brands offering bikes on minimum down-payment. Well, the offer works in favour of all three parties as the bike companies can sell more vehicles, and loan disbursers can give out more significant loan amounts. Lenders disbursing larger loan amounts imply larger interest returns. 


Finally, the buyers also get to bring their vehicle home at the minimum possible cost. A win-win situation for everyone, but if you choose to pay the maximum part of your bike cost, then the loan burden may be very less.


Repayment Tenure

Depending on your financial liabilities and affordability, you can choose your repayment tenure between twelve to sixty months. However, it is a well-known fact about bike loans that the longer the tenure, the greater the interest payable. 


Therefore, you need to figure out a balanced tenure so that you pay your loan back in time and that too without punching holes in your pocket.


Hidden Charges

Full transparency in loan disbursement still appears to be a far cry, and it is expected to stay that way in the future too. Therefore, a savvy lender will always carefully read all the terms and conditions before signing the loan documents. 



Looking at increasing fuel prices and high traffic on roads, most people are switching to the swiftest mode of transport, i.e., the two-wheelers. If you also want to avoid the bustle of public transport and delay due to four-wheelers, it is an excellent time to buy a stylish motorcycle!


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