Two-wheelers are ideal for navigating the often congested Indian roads. Both in rural and urban areas, individuals prefer owning two-wheelers for their daily commutes over four-wheelers. These vehicles are easy to handle, offer better manoeuvrability and are fuel-efficient. Additionally, you won’t have to rely on public transport to reach your destination. Over the last decade, there has been a substantial increase in the number of registered two-wheelers in the country. Individuals today can easily purchase bikes by applying for – and gaining access to – two-wheeler loans. Thus, you can now buy your preferred bike on EMIs and repay the amount over a period of 1-7 years.
While buying a bike on EMIs, you have to follow a sequence of steps and these have been highlighted below:
First and foremost, ensure that you are eligible to apply for the two-wheeler loan. Different lenders have varying eligibility criteria. By visiting their websites, you can go through the terms and conditions and ascertain the eligibility terms, such as minimum age, minimum monthly income and documents needed to apply for the loan. This also significantly reduces the chances of your loan application getting rejected.
Next, you can calculate the EMI amount you might have to pay once the lender approves your loan application. It is prudent to anticipate the EMI amount, which will help you streamline your finances. You can do this by using a bike loan EMI calculator and by entering the interest rate, principal amount and loan tenure. By calculating the EMI amount, you will be in a better position to gauge the two-wheeler loan amount you require and the ideal repayment period, so that you wouldn’t be overburdened while repaying the loan.
Finally, you need to apply for two wheeler loan and buy the bike on EMI. You can either apply for the loan online or visit the lender’s office or the nearest branch. Once you provide the basic details online – such as your personal and employment details, your loan application will be assessed by the lender. If your loan application is approved, a representative from the lending entity will get in touch with you to finalise the details.
EMI calculators are helpful tools, as these predict the EMI amount you will have to pay every month, depending on the loan amount, interest rate and repayment period. You won’t have to worry about spending a significant chunk of your monthly income to pay the EMIs, and you can strike the right balance between the EMI amount and the tenure. You can also ensure that the interest component isn’t substantial and get the best interest rate possible.
Purchasing a bike on EMI has several merits and a few of them are highlighted below.
Affordability: Even if you want to purchase a high-end bike that is expensive, you can easily afford the bike by paying for it in bite-sized instalments. This does not require you to disrupt your savings reserve and you can save for a rainy day.
Flexible repayment terms: Different lending institutions offer loans with varying repayment periods. The tenure can range from 1 to 5 years, while certain lending entities offer tenures of up to 7 years. This allows you to spread the instalment amount, resulting in low-cost EMIs.
Competitive interest rates: Before you buy a bike on instalments, you can assess the interest rates offered by different lenders. The interest rate for buying a two-wheeler can range from 8% to 28%, depending on various factors such as your credit score, employment status and monthly income. You can choose a lending entity that offers the best interest rate.
Faster approval times: Unlike the offline application process, online loan applications are quicker and more convenient. Certain lenders also approve your loan application within 48 hours, and also boast quick disbursal times.
Up to 100% funding: Select lending institutions also provide up to 100% financing of the on-road price of the bike. This is particularly helpful if you are short on funds, or if the bike you wish to purchase is expensive.
Different lenders have varying eligibility criteria while assessing loan applications. However, the most common eligibility criteria include the following.
Criteria |
Salaried Individual |
Self-Employed Individual |
Age |
21 - 65 years |
21 - 65 years |
Credit Score |
750 or above |
750 or above |
Employment |
Gainfully employed for at least one year at a Private Limited Company, MNC or a PSE |
Working for at least one year |
Monthly Income |
At least ₹10,000 per month |
At least ₹10,000 per month |
Residence |
Residing in the same city for at least one year |
Residing in the same city for at least one year |
While the credit score requirement isn’t a prerequisite for all lending entities, it is wise to have a credit score of around 750. This shows the lender that you are a responsible borrower, and have dealt with previous loans and debts responsibly. Additionally, different lending entities have different minimum monthly income mandates, but you should earn around ₹10,000 - ₹15,000 per month.
During the loan application process, you are required to submit a few documents.
Documents |
Salaried Employee |
Self-employed |
ID Proof |
Aadhaar Card, passport, PAN Card, driver’s licence, Voter’s ID or an Identity Card with your photo, issued by the State or Central Government departments or PSU |
Aadhaar Card, passport, PAN Card, driver’s licence, Voter’s ID or an Identity Card with your photo, issued by the State or Central Government departments or PSU |
Passport-size Photos |
You also have to submit two recently taken passport-size photos |
You also have to submit two recently taken passport-size photos |
Address Proof |
Aadhaar Card, passport, driver’s licence, Voter’s ID, electricity bill, or your bank account or Post Office’s savings bank account statement, issued by the PSU or private sector or MNC banks. Additionally, you can also submit your property or municipal tax receipt |
Aadhaar Card, passport, driver’s licence, Voter’s ID, electricity bill, or your bank account or Post Office’s savings bank account statement, issued by the PSU or private sector or MNC banks. Additionally, you can also submit your property or municipal tax receipt |
Employment Proof |
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Certain lenders do let you buy bikes on EMIs with zero down payment. However, the zero down payment bike loan also depends on the bike’s price, as these vehicles usually aren’t very expensive.
You can follow these steps to buy a scooter or bike on EMIs.
Visit the lender’s website or go to their office/nearest branch
Click on the ‘Apply Now’ button
You will then be redirected to a page with all the different loan offerings
Opt for a two-wheeler loan
Choose ‘Salaried’ or ‘Self-employed’ as applicable
Fill out the online form mentioning your personal and employment details
Click the ‘Submit’ button and submit the details
A representative from the lending entity will get in touch with you, and mention the loan terms, such as the loan amount, interest rate, repayment period, documentation process etc.
Once you submit all the relevant documents, you will be able to purchase the scooter or bike on instalments.
The bike loan interest rate varies from lender to lender. While applying for a two-wheeler loan, the bike loan interest rate ranges from 8% to 28.3%, depending on your credit profile, age, employment status etc.