Personal Loan

Own Your Favourite Ride With A Two Wheeler Loan


Bike riding is a wonderful experience, particularly for youngsters. Choosing the correct two-wheeler will allow you to navigate congested roads to work, and going on a trip with friends without any worries.

A new two-wheeler may easily go on for more than 1 lakh kilometres. But if you want a good bike, you may apply for a bike loan. Knowing your eligibility for a bike loan is crucial because it can help you comprehend the subsequent steps involved in determining an applicant’s eligibility for a bike loan. This step-by-step guide will help you find the best two-wheeler loan and clear any questions or doubts.

What is a two-wheeler loan?

A loan for a two-wheeler is offered to people so they may buy the two-wheeler of their dreams and pay in EMIs. Purchasing a bike on an EMI won’t affect your savings as you must pay the amount every month over up to 84 months. Two-wheeler loans are secured loans and have lower interest rates. If you select a loan with no down payment, then you need not make any payment to the lender at the time of loan disbursal.

Eligibility for a two-wheeler loan

Here are some requirements that must be met to qualify for a two-wheeler loan in India:

  • For working professionals, the age range while applying for a two-wheeler loan should be between 21 and 60 years old. Self-employed people should be between the ages of 21 and 65.
  • The monthly income for self-employed individuals must be at least Rs. 6,000. For salaried employees, it should be at least Rs. 7,000.
  • Your business or home must have a landline phone connection, and your address must be the same for at least a year.
  • For a two-wheeler loan, you may only get up to Rs 10 lakhs in funding. The two-wheeler loan can be repaid in a maximum of 84 months or seven years.
  • Your eligibility for a bike loan is affected by the city in which you reside. Your chances of securing the loan might increase if you reside in a major city.

Interest Rates

Financial institutions determine bike loan interest rates after considering your financial situation and history. However, the credit score has a significant impact on the interest rate. A poor credit history would result in a higher interest rate, and vice versa. The interest rate charged on a two-wheeler loan typically ranges from 9.5 to 17.75%. Although there is no set credit score requirement for a bike loan, it is recommended to have a score between 700 and 750 because banks and NBFCs view this range as optimal.

Advantages of a two-wheeler loan

There are several benefits of applying for a loan to purchase the bike you’ve always wanted. Some of the benefits are as follows: –

  • A high income is not required to qualify for a two-wheeler loan. Additionally, it’s not required to fall into the tax bracket. You can apply for a two-wheeler loan even if your yearly salary is INR 96,000.
  • You can get the money you need to purchase the bike of your choice. You may get a loan to purchase superbikes as well.
  • It is ideal for young people to get a two-wheeler loan and repay it on time to create a good credit history.
  • Bike loans are available at low-interest rates as compared to other unsecured loans.
  • You will make monthly payments in the form of EMIs against the loan. Hence, you’ll save your money for other expenses.

Things to consider for a Two-Wheeler Loan

  • You should evaluate your requirements and determine the precise amount of money required to purchase the desired bike. Never apply for more money than you require.
  • You can acquire a co-applicant or guarantor if your credit score is below what the lender requires. It may be easier to receive the loan you need if you have a co-applicant or guarantor with strong credit.
  • As you submit your loan application, submit all the papers that the lender requires. Your application might be denied if the required papers are not submitted.
  • Sometimes lenders also provide extra perks like zero processing fee, a free gold coin during the festive season, free insurance, etc.
  • Find out the fees involved if you ever want to prepay or foreclose on your two-wheeler loan.
  • A shorter term will aid in loan repayment. Your EMIs, however, will be high. Decide how much you can afford to pay down each month without stressing your finances.
  • Your debt-to-income ratio helps you learn more about your present debts and income. Your chances of securing a loan are greater if this ratio is lower.
  • Lenders will realize that you might not accept the loan they provide if you apply for many loans at once. They can turn down your application as a result. So, do not apply with several lenders at once.

Documents required

The following papers must be provided to assess eligibility and start the loan application process:

  • KYC Proof – Voter ID, passport, driver’s license, and PAN card
  • Income proof – Salary slip, IT returns, and bank statements
  • Address proof – Voter ID, passport, driver’s license, and PAN card
  • Signed and completed loan application
  • Passport size photographs


A two-wheeler vehicle loan has several advantages, allowing you to take advantage of various deals while owning a bike. You may get your ideal bike easily, thanks to the hassle-free lending process. The criteria for two-wheeler loans rely on a variety of factors. Piramal Finance is your company if you want a speedy two-wheeler loan with less paperwork. Start the journey to your dream bikes with Piramal Finance now.