When you think about it, two-wheelers are one of the best and trustiest companions of middle class families in India. During all times of the day and night, you can see bikes or scooters on the roads of India. They are not just a tool for commute, but people also use them for leisure cruising, racing, long distance travel, and off-road riding. However, not everyone can afford to purchase a bike outright in cash. This is where two-wheeler loan enters as the saviour. Such loans are especially designed to ensure that the customers are able to buy their dream bike or scooter. A two-wheeler loan is loan provided to individuals to purchase their dream two-wheeler in attractive payment options. Lenders can be paid back in Equated Monthly Instalments (EMIs).

You may have heard some people claim that availing a two-wheeler loan is a bad idea, and it will be better to avail a car loan. Well, everyone is entitled to their opinions, even if it is wrong. Two-wheelers are so beloved in India because:

  • They are easier to manage in traffic
  • They cause less pollution
  • They save time during commute, helping cut through traffic a lot better compared to cars.
  • It is easier to get bike loan without down payment

Two-Wheeler Loan! Applicant’s Dilemma!

Majority of the people in India choose to avail a two-wheeler loan even if they have the necessary cash or funds to purchase the vehicle outright. The reason for doing so is that a two-wheeler loan provides the option of paying back the amount in EMIs. The EMIs are large enough to repay the loan in due time but not large enough to put a major financial dent on your funds. As a result, two-wheeler loans are one of the best products of banks, NBFCs (Non Banking Financial Companies), and lenders. The popularity of two-wheeler loan, in particular bike loan without down payment, has led lenders to compete with each other. Thus, people now have numerous choices that offer attractive interest rates and EMIs in addition to other perks such as instant loans and loans for used bikes among others to entice the customers.

However, people now numerous choices for buying their dream bike or scooter. As a result, they are bombarded with different perks and offers, but most do not know the requirements of applying for two-wheeler loan or all factors that need to be considered before applying for bike loan. So, without further ado, here are some key factors that you need to know about two-wheeler loans.

The process of Availing A Two-Wheeler Loan

There are two methods two apply for bike or scooter loans: Online and Offline. However, the steps for applying for the loan largely remain the same, they are:

  1. Research interest rates and tenure of different lenders or bank, and use two-wheeler loan EMI calculator to assess feasibility. Additionally, you should check out the documents that the lender requires and the complexity of documentation process.
  2. Check eligibility criteria to ensure that you meet all the requirements of the bank or lender.
  3. Select the bank or lender that best suits your needs. Remember that you should also consider factors such as urgency of loan, etc.
  4. Ensuring that you have all the right documents to complete the documentation process.
  5. The best step of the process: Get your dream bike or scooter.



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Eligibility Criteria to Apply for Two-Wheeler Loan

Since majority of the bike loans are unsecured, banks are extremely cautious and ensure that their customers are capable of repaying the loan. Every bank or lender will have their own set of eligibility requirements. However, here is the general eligibility criterion:

Factors Requirements
Age Between 21 and 65 years of age. Some banks have minimum age as low as 16 for mopeds and electric scooters
Credit Score Preferably 750 and above. However, a score below 750 will make you eligible but the interest rate would be higher
Minimum Annual Income INR 75,000
Employment Status Self-employed or Salaried


Documents Required for Bike Loans

It is important to remember that while eligibility criteria are important to avail a loan, not having the required documentation to back that information will lead to a rejection. Just like eligibility criteria, every bank may have different documentation process and requirement of documents. However, here are the most basic documents that you may require:

Type of Documents Requirement
Photo Identity Proof 2-6 passport size photographs
Identity Proof The following are considered as identity proof:

  • PAN Card
  • Passport
  • Aadhar Card
  • Driving License
  • Electoral Voter ID Card
Proof of Employment For self-employed Individuals:

  • The Last Form 16
  • Proof of income source
  • Bank Statement

For salaried individuals:

  • Salary Slips
  • Offer letter or letter of employment
  • Bank Statements


Interest Rates for Two-Wheeler Loan

The interest rates for two-wheeler loans vary based on numerous factors such as your credit score, the tenure of the loan, and the type and nature of the bike or scooter. The rate of interest could be as low as 11% and as high as 18.25% depending on the factors mentioned above and your choice of lender. If you want to know which banks you should consider, check out banks that offer the lowest two-wheeler loan interest rate.

Instant Two-Wheeler Loan At PaySense!

Applying to a bank for a two-wheeler loan is a safe and conventional option. But, in the age of information, there are better lenders in the digital world. While the banks offer slightly lower interest rates, they have a lot of drawbacks that include tedious documentation and time-consuming approval process. Additionally, some banks do not allow you to use the loan to purchase a secondhand bike or scooter. Not only does PaySense offer you loans for both new and used two-wheelers, you also get instant approval for the loan. So, do not wait, use the two-wheeler loan EMI calculator to check affordability and apply right now!