Two-Wheeler Loans

Introduction to Two Wheeler Loan

5 min read

Banks and lending institutions offer loans to individuals for a number of purposes. Of these, automobile and vehicle loans are very popular as they help facilitate a comfortable lifestyle and offer a better mode of transport. In this section to our Introduction to Two wheeler loan not only will you learn about the bike loans but also the finance rates. A Two Wheeler loan is one which is offered by lenders to those who wish to get a two wheeler vehicle (motorcycle or scooter). Bike loans are very popular as they are far more affordable to a large segment of the population. Quite a few banks and motorcycle lending financial companies offer bike loans in India. At BankandFinance.com, prospective borrowers can access information on the best lending companies and their finance rates for the next motorcycle purchase. Getting loans in India has become easy and simple, where you just need to know your eligibility and if one can meet the specified requirements.

Going for a two wheeler loan is a good and practical idea when one is looking for a vehicle. Using public transport is becoming quite difficult due to growing pressures on the system. With the rise in population, public transportation has become overcrowded and it is very difficult to get a seat on the bus or even get on it. Getting a two-wheeler is one way to meet transportation needs, travel comfortably and get to places on time.

Loans in India are available to salaried and self-employed professionals. With the release of new models in scooters and motorbikes every year on to the market, buyers are always looking for vehicles which not only look trendy but also offer good gas mileage. This helps them to save money on insurance and maintenance as well. The demand for two wheelers keeps going up every year as they are an efficient way to get around and maneuver through tough traffic conditions. With the increase in usage of two wheelers, there has been a lot of competition with banks and other motorcycle lending companies in India for loan finance. A two wheeler loan is available at attractive finance rates to customers along with easy repayment options in the form of monthly installments or EMI. There are many motorcycle lending services which offer 70% to 90% of loan to value for the bike loans.

Benefits of Bike Loans

  • Applicants can get a vehicle in no time. Generally, banks take 48 hours to sanction a two wheeler loan after the verification of documents.
  • As there are a number of motorcycle lending companies and banks in India, applicants can easily get loans at low finance rates along with good repayment options.
  • The bike loan repayment and tenure period is very flexible and easy. Borrowers can choose pay off the loan with in 12, 24, or 36 months.
  • Minimum documentation is needed to get bike loans in India.
  • Bike loans are a hassle free process, where no guarantor or security is needed.
  • Customers can use the BankandFinance.com financing calculator to estimate the down payments, monthly payments and interest rates before applying for two wheeler loans.

Before applying for a two wheeler loan, applicants should consider a few things. The first thing to do is to look at their financials and check if they can pay off the loan amount taken and how long it would take. Check with the banks or the loan finance companies on finance rates and documentation needed. Borrowers have to keep in mind that if they don't have the repayment capacity and have a history of defaults, then the banks and motorcycle lending services can repossess vehicle if payments are not made. This process can have a negative impact on a person’s credit score and eventual ability go get loans for other needs. It pays to use the financing calculator to know the monthly payments on bike loan or any other type and stay on a repayment schedule.

Motorcycle lending services and banks will always check to see if applicants have a good credit history and repayment schedule. Banks should feel that applicants are a good credit risk and able to repay the loan amount. After verifying documents and information, only then do they sanction the loan amount. If borrowers have a good credit history, they can negotiate and get better finance rates from lenders. As there are many lending companies and banks vying for business in India, customers benefit in the form of cheaper and low finance rates to meet their needs.

The minimum and maximum two wheeler loan amounts that banks offer is Rs.5000 to Rs. 150,000. The maximum amount that a bank can sanction depends on the vehicle type (new or used). If the vehicle is new, banks would normally offer 85% of the loan amount. If the vehicle is used, banks can offer 90% of the loan value. For example, if you are looking for a used motorcycle which cost Rs. 100,000 then the bank can give a loan up to Rs. 90,000. The remaining Rs. 10,000 will have to be paid upfront by the buyer. That finance rates vary from one bank to another is a given. Prospective buyers should do their due diligence and find out which bank or lender offers the best loans. One can fill out a free quote estimate on the BankandFinance.com site and get the latest and most accurate information on the cheapest motorcycle loan. Use the bike loans calculators to calculate monthly payments and then work on the personal budget.

Gather information about the two wheeler interest rate from various lenders by providing personal information, vehicle details, and loan amount on are looking for. Lending rates from various banks should be gathered and compared to get low and cheap rates. Once the application has been submitted by a customer, representatives from the bank/lenders contact the person for more information on their credit history, income, loan amount required and so on. They will explain the benefits, offers and finance rates being offered by the bank. If the motorcycle lending company feels that an applicant can repay the loan amount, then bike loans application gets expedited quickly. The banks will verify credit history, documents and then process the loan application.

One can gather information on two wheeler finance options from top banks like SBI Bank, HDFC Loans, ICICI Bank, AXIS and many more. You can receive HDFC bike loan details and lending rates along with other various banks by going through BankandFinance.com.