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.
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.
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.