About Two Wheeler Loan

A two wheeler loan helps you purchase a motorcycle or a scooter of your choice, and pay for it in equated monthly instalments (EMIs).

A two-wheeler loan is a form of a secured loan that is given by a bank or an NBFC (Non-Banking Financial Company) to an individual to help him/her buy a bike or a scooter when he/she does not have enough funds to buy the same. This can help the individual with transportation to get through the city traffic with ease. Bikes and scooters are costly and so it is generally very hard for a person to pay the entire amount in one shot especially if one has other financial obligations for the month. So, a two-wheeler loan goes easy on the pocket as one can pay EMIs (Equated Monthly Instalments) on a monthly basis and repay the loan over a period of time.

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Features & Benefits

A vast array of institutions offer you the best Two Wheeler loan rates at the most competitive rates and affordable EMIs.

Full financing of vehicle

Most banks and Non-Banking Financial Companies (NBFCs) finance up to 100% of the two-wheelers on-road price.

Flexible tenures

Two-wheeler loans generally have tenures that can extend up to 4 years. In some cases, tenures of up to 5 years is also possible.

Simple documentation

Most two-wheeler loans have very minimal documentation that needs to be done by the customer. ID proof, address proof and income proof are the only documents that are commonly asked for.

Speedy disbursal

Most lenders who provide two-wheeler loans ensure that the loan amount is in your bank account in 3 working days or sooner.

Eligibility Criteria

To qualify for a Two Wheeler Loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a Two Wheeler Loan.

Age

Must be a minimum of 18 to 21 years of age and a maximum of 60 years of age.

Employability

Must be a salaried employee or a self-employed individual

Credit Score

Must have a good credit score and a good credit history

Income

Must have a regular monthly income

Relationship

Must have a good relationship with the bank

Residence

You must be a resident of India

Documents Required

Below is some of the basic documents which are required at the time of Two Wheeler Loan

  • ID proof (Aadhar card, Driving licence or Passport)
  • Address proof (Aadhar card, Driving licence, Passport, Voter’s ID or Electricity Bill)
  • Passport size photograph
  • Bank statement for about 6 months
  • Income proof (Pay slips)
  • PAN card
  • Form 16 (For self-employed individuals)
  • Income Tax Returns (For self-employed individuals)

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, then have a look at some of the basic FAQs.

Individuals like a salaried employee or self-employed professional and institutions like firms, trusts or private and public limited companies can avail a two-wheeler loan.

There is no fixed figure but the bracket is regulated by government policies. It can differ from one applicant to another, courtesy the discounts offered by manufacturers and dealers. Also, people with better credentials to repay the loan are given better rates. You can always negotiate the loan rate with the lender.

The interest is calculated on a monthly reducing balance basis. It is a method where the interest paid every month reduces a part of the principal amount. The interest for the next month is calculated on the basis of the reduced/outstanding principal.

Because two-wheeler loans are secured loans, there is no need of a collateral. The bike itself acts as a collateral i.e. till the loan is not fully repaid, the vehicle will be hypothecated to the lender.

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