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What is the ideal tenure for a Two Wheeler Loan?

By Finserv MARKETS - Aug 27,2019
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What is the ideal tenure for a Two Wheeler Loan?

Investing in your first two-wheeler is probably one of the first big financial commitments you will make. Your first two-wheeler will not only play a critical role in improving your commute but will also change your financial obligations considerably. With more and more people in the country using bikes and scooters as a preferred mode of transportation, there has been a rise in the availability of two-wheeler loans in the market. When you have made the decision to avail a two-wheeler loan to finance the purchase of your new bike, motorcycle or scooter, the next step is to decide what loan tenure you should opt for. While most lending institutions and banks offer the flexibility of the loan tenure you can opt for, this is a very important decision that you must think about.

Why does my two wheeler loan tenure matter?

Your loan tenure in combination with the loan amount and loan repayment capacity are most important factors you should consider when taking out a two-wheeler loan. The tenure of your loan will directly affect the EMI payment you will be making every month as well as will affect the overall interest rate you will be charged on your loan. You need to remember that while banks allow you flexibility in the tenure of two-wheeler loan you can opt for, taking out the maximum tenure of the loan will lead to a smaller EMI payment every month, however, you will be paying more EMIs, which means you will be paying overall more interest rate. However, if you opt to take out a smaller tenure on your loan, the value you will be paying as each EMI will increase, however, you will be paying lesser in interest as the overall rate of interest for your loan and the cost of borrowing it will decrease.

You can now avail Bajaj Finserv Two Wheeler loan online on Finserv MARKETS with minimal documentation and swift approval. What’s more, is that you get all the information about your loan amount, EMI’s and due dates, and contact details within 10 days of getting your two-wheeler loan. In fact, if you avail a two-wheeler loan through Finserv MARKETS, and do not want to open a bank account, you can also avail the cash repayment option for the loan.

How to decide how much two wheeler loan tenure should I opt for?

In order to calculate how much loan tenure you should opt for, you should see various tenure options and how much EMI you will have to pay for them monthly. An easy way to do this is through an online EMI calculator. Start by choosing a longer tenure and seeing how much the estimated EMI for your loan will be. Keep reducing the tenure until you arrive at a monthly EMI that you can afford. Ensure that you take your monthly expenses and budget into account when you are deciding this. Add your EMI payment as an additional fixed payment you will be making every month to ensure that your budget is not imbalanced as a result of the same. A rookie mistake would be to just opt for the highest loan tenure available to you as this generates the lowest EMI but will increase the overall cost you pay of taking out the two-wheeler loan.

Hence, once you keep all these factors into consideration you will be able to arrive at an EMI figure and loan tenure that will suit your repayment capacity. Typically, it is advisable to have a maximum tenure of 2 years for a two-wheeler loan. However, most banks and lending institutions offer you a flexible tenure of anywhere between 3 months to 24 months to suit your repayment capacity.

Once you have taken all these factors into consideration, go ahead and bring home the bike of your dreams without worrying about burning a hole in your wallet by paying the entire cost of your bike in one go. Thanks to Finserv MARKETS, you can easily avail Bajaj Finserv Two Wheeler loans with a seamless, transparent online buying process. Assistance, cash payment options, early foreclosure options and a low foreclosure fee make this an attractive value proposition.

Read more on how you can get the best comprehensive deal on two-wheeler loan only at Finserv MARKETS.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers, which are tailor, made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522