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Two-wheeler Loan V/S Personal Loan

By Finserv MARKETS - Nov 26,2019
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Two-Wheeler Loan vs Personal Loan
A common dilemma faced by two-wheeler buyers is whether to take a Two-wheeler Loan (Bike Loan) or Personal Loan, when buying a two-wheeler. Though both these loans serve the purpose, there are some important differences. Here are a few points that will help you make the right choice.

Loan type:

The major feature that differentiates a bike loan from personal loan is the type. Bike loan is secured loan – a loan that requires you to pledge any asset for the collateral. In case of bike loan, bike itself can serve as a collateral. A personal loan is an unsecured loan, which do not require any collateral against the loan.

Loan Amount: 

A Two-wheeler Loan usually depends on the price of the two-wheeler and will cover the exact value of the vehicle but what if you want a riding jacket and a premium helmet as well? This is where a Personal Loan has the edge as it lets you avail funds up to Rs. 25 Lakhs. This will cover the cost of the two-wheeler and any additional products you need.

Interest rate: 

Since personal loans are unsecured loans, they do not require any collateral, hence their interest rates are relatively high. Since the vehicle itself serves as collateral in a two-wheeler Loan, the interest rate is significantly lower.


Loan disbursal time: 

Personal Loans can be sanctioned within 24 hours while a Two-wheeler Loan disbursal takes 4 to 5 days.

To learn more about Two-wheeler Loans and Personal Loans, head to Finserv MARKETS.


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522