Two-Wheelers are not a luxury in India, but It’s life blood that flows through all its roads. Professionals, youngsters, housewives and senior citizens alike use two wheelers to drive through rush hour traffic every day. Two wheelers are so popular in India mainly because it is fuel-efficient, easy to traverse, and allows storage space as well. While two-wheelers are affordable in India, their price range is roughly INR 50,000 to INR 100,000, which people do not normally choose to pay in a single instance. In these situations, people normally prefer to avail two-wheeler loans to buy two-wheelers, so they can pay for it in instalments. This reduces the stress on the buyers and allows them to start using the bike as soon as they avail the loan and complete the payment.

Benefits of Availing a Two-Wheeler Loan

  • When you avail a two-wheeler loan, it also includes the cost of the insurance, accessories, and the registration fees.
  • To get the most out of two-wheeler loans, try checking out payment options with your automobile dealer
  • The eligibility criteria for two-wheeler loans is extremely lenient in India, which includes the required income level as well
  • Most banks offer a flexible repayment terms along with an easy tenure in case of bike loans

How to Apply for Two-Wheeler Loans?

You can either apply online for EMIs on two-wheeler loans, or talk to your automobile dealer about loan option during payment. Usually both options include you filling an online form which includes filling of basic identification and income details.

If you apply online, you are required to submit scanned copies of your documents (in some cases, the bank agents will visit you personally to secure the document copies). After you submit the require documents and your loan is approved, the scooter is yours to drive.

The documents required for a loan include the following:

  • Either one of these as Photo ID – PAN Card, Password, Voter ID Card, Driving License, Aadhar Card
  • Either one of these as address proof – Ration card, Passport, Aadhar Card, Driving License, Landline Bill, Sale Deed



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Interest Paid on Two-Wheeler Loan

No, the down payment is an amount fixed by the automobile dealer. However, it is an amount separate from the EMI cycle, and interest is not charged on the down payment amount. For instance, if avail a loan of INR 60,000 for your two-wheeler and your down payment is 10,000, the interest is calculated only on the remaining amount. The higher down payment you pay for your two-wheeler, the interest amount reduces for you.

In India, two-wheeler interest rate is usually around 15-17%. However, some banks or NBFCs categorize customers in bands which are based on their credit rating and charge an interest rate on the loan accordingly. Alternatively, you can check out which banks provide the lowest interest rates.