7 Important Things To Know Before Two-Wheeler Purchase

In this era of COVID-19, getting a two-wheeler has become a necessity. It is the best way to not only navigate through daily traffic but protect yourself from contracting the deadly virus and following the social-distancing norms. Therefore, the demand for two-wheelers has significantly increased over the past two years. 

With the financial instability induced by the COVID-19, not everyone can afford to buy a wheeler from their savings. In such cases, you can apply for best bike loan to manage your finances without constraining your monthly budget. Most lenders in India offer up to 100% of your preferred bike’s value as a loan. The best part is that interest rates start from as low as 0.99%, enabling you to make timely repayments. 

Things you must know before applying for two-wheeler loans

With numerous options available in the two-wheeler market, it is common for borrowers to fall prey and end up paying higher interest rates. Here are the essential things to know before applying for an online bike loan: 

Know the eligibility criteria 

Before applying for a two-wheeler loan, make sure to check the eligibility criteria of your preferred lender. The requirements vary across different lenders, but here are the ones common across all lenders: 

  • You must be an Indian citizen
  • You must either be a salaried or self-employed individual. 
  • You must earn a minimum salary of Rs. 96000/- per annum and Rs. 120,000/- as net profit. 

Know the loan amount

Not all lenders offer the entire value of the bike as a loan. Some of them offer up to 80% of the vehicle’s on-road price. However, it is worth noting the loan amount is determined based on your repayment capacity. Before applying for a loan amount, you must assess your needs and repayment capacity to make an informed decision. 

Make use of a two-wheeler loan EMI calculator

An online bike loan EMI calculator is a financial tool that enables borrowers to determine a suitable  EMI amount based on their needs and preferences. Similarly, you can use the EMI calculator to check your affordability based on the loan amount, interest rate, and loan tenure. The best part about it is that you can alter changes as many times as you want until you come up with a suitable figure. 

Consider a hassle-free loan application process 

There are two ways to apply for two-wheeler loans. You can visit your nearby bank or apply online. The most convenient and hassle-free mode is through online platforms. The benefit of applying for a loan online is that you can fill in your application form, upload your document, and submit your application from the comfort of your home.  Besides that, the process of application is simple, easy, and quick. So, while applying for a two-wheeler loan, make sure the application process is easy and hassle-free. 

Choose the right repayment tenure 

 The benefit of applying for two-wheeler loans is that you can avail yourself of flexible repayment tenure. You have the luxury of repaying your loan amount with interest within 12 to 48 months.  However, your loan tenure has a direct on your interest rate. If you choose a higher loan tenure, your interest will increase in the loan run. But, if you opt for a shorter loan tenure, your EMI may increase, but your interest will decrease.  

Pay a higher down payment 

Not all lenders offer the entire on-road price of your bike as a loan. You may be offered up to 80% of the bike’s value as a loan. It means that you will have to pay the remaining 20% as a down payment. It would be wise to make a higher down payment if you wish to secure a lower interest rate as a higher down payment means a lower loan amount. 

So, before applying for an online bike loan, check how much you have to pay as a down payment. If you have the budget, pay a higher amount towards your down payment. 

Apply for a loan during special offseasons 

Most banks and non-banking financial companies offer lower interest rates and discounts during festivals, such as Holi, Diwali, and EID. You can get the best rate by applying for a loan during such seasons. Furthermore, make sure to compare different rates from different lenders to choose a bike loan that best serves your needs. 


Two-wheeler loans are the best way to own your dream bike without putting any burden on your pocket.  The best part is that you do not have to pledge anything as collateral to get a loan. Also, before sending your application, make sure to read their customer testimonials to get a sense of your preferred lender’s reputation and services.

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