Owning a two-wheeler gives a lot of comfort to commute from one place to another especially in busy metro cities where travelling in public transport could turn out to be quite a nightmare. Hence, a two-wheeler has become an indispensable object for convenient transport. For many, buying a motorcycle by paying the full amount would not be possible due to multiple economic commitments. In such a scenario, taking a loan is the only option. However, banks do not lend money to every individual who applies for a loan. There are lots of eligibility criteria that decide the loan approval.

With a good credit score, you may not find it difficult to get a lender to finance the vehicle. What if you are already under bad credit and still buying a motorcycle is an utmost necessity? How will you find a lender who would extend credit to you even with a poor credit score? Read on to find answers to all these questions.

What is a Good Credit Score for a Bike in India?

There is no such fixed score for availing a bike loan, but it is generally assumed that all financial institutions accept a score of 600 plus or 750 upwards. Credit score could range between 300 to 900. The higher the number, the better are your chances of getting a bike loan. Different banks have different criteria or eligibility conditions for dispersing a bike loan. Therefore, it is advisable to maintain a good credit score.

Impact of a Low Credit Score on Two-Wheeler Loan

One of the few reasons why many banks reject an application for a bike loan is because of a low credit score since this is the minimum requirement. Mentioned below are a few reasons for a poor credit score.

  • Previous or existing loans - If you have an existing bike loan or have been recently rejected for a bike loan application and have immediately applied for another loan, there is a greater chance for the new loan application to get rejected. This can further lead to a bad credit score.

  • Delayed payment - If you fail to pay credit card EMIs on time regularly, it will hurt your credit score

  • Credit card bills - Ensure that you pay your credit card bills in full every month on the due date. The reason being that the outstanding amount is considered as overdue by the credit rating agency. A consistent build-up of overdue can lower your credit score.

  • Missing payments - This is probably the worst-case scenario for your credit score. Failure to pay even a single payment can give a negative marking to your overall score.

  • Multiple credit applications - When you apply for credit to multiple banks at the same time, it increases the chances of a hard inquiry. Each negative inquiry can downgrade your credit score drastically.

Ways to Get a Bike Loan With a Bad Credit Score

If you have a bad credit score and still need a loan, you will have to compromise on a few pointers mentioned below.

  • More down payment - With a bad credit score, you will have to pay more on a down payment. A down payment is the fixed amount you have to pay on any bike loan that you seek. Banks usually finance 80 to 90 per cent of the vehicle via a loan, the remainder is paid upfront as a down payment. Making down payment reduces a lot of outgo on your interest rate and reduces the loan tenure. This is a suitable option as the loan amount to be repaid is less.

  • Negotiate better lending terms - There are many instances which may have caused you to default on your previous loan and can still have an impact on your credit score. It is always advisable to negotiate better lending terms with your bank and bike dealer even if the interest is a little bit higher.

  • Compare multiple lenders - It is always wise to keep multiple options open for selecting and comparing different lenders. By doing enough research, you will be successful in getting a two-wheeler loan from the right lender with a better interest rate, terms and conditions. This has been further facilitated by a new method of evaluating the creditworthiness of the borrowers. Banks and credit institutions look for additional criteria such as employment and a steady state of income.

  • Co-signer - A co-signer is a person who is equally held responsible for your bike loan, they are like a guarantor. If you have a bad credit score, getting a co-signer with a good credit score could be another viable option to get a two-wheeler loan. The creditworthiness of your co-signer will be taken into consideration for the loan approval.

Benefits of a Two-Wheeler Loan

  • Low down payment - The best part about a bike loan is the low amount you have to pay as a down payment. Banks finance up to 90% of the bike’s value. The remaining 10% is what you have to pay for a down payment. This implies that if your bike is worth ₹50,000, all you have to pay is ₹5,000 to bring your brand-new bike home!

  • Instant loan - All automotive houses have got direct deals with banks for loan disbursement. You can do this entire process online within a day and bring home a new bike by EOD.

  • Repayment tenure - The repayment tenure of a bike loan is usually between 12 and 48 months. You also have an option to choose the flexibility of tenure for EMI and online payment. This ensures a lesser financial burden and provides a suitable period to pay back the two-wheeler loan.

  • Flexible tenure - As mentioned above, you can choose a flexible tenure in 2-wheeler loans for up to 4 years for easier repayment.

  • No charges - Most banks do not have any additional or extra charges for the loan amount. This again helps ease the financial burden.

  • Insurance cover - As per Indian Motor Act, the automotive dealer along with the bank provides insurance cover for both the vehicle as well as the accidental cover for the buyer at a marginal annual premium, while sanctioning the loan.

End Note

Some financial institutions consider credit score as the main criterion for granting a two-wheeler loan. Bad credit could be a result of defaults that you had done years back which have an impact on your credit score even today. Your economic situation might have improved, and you could be having steady employment despite having a bad credit score


  1. What is a good credit score for a bike loan?

There is no such fixed credit score required for a bike loan, but it is advisable to have a score between 600 and 750, as this range is considered ideal for banks and credit institutions.

  1. Can I get a bike loan without a good credit score?

The chances of getting a bike loan with a bad credit score are difficult, but not impossible. You can always negotiate a deal such as more initial down payment to reduce the overall loan amount.

  1. How to check your credit score?

You can check your credit score online. You may need to submit the following details - name, identity proof details and date of birth. Post submission, your credit report will be sent to you in email.

  1. How can I improve my credit rating?

You can improve your credit rating by paying all your outstanding credit card bills and loan EMIs on time. Another way is to clear all your previous debts and existing loans.

  1. How can I check my eligibility for a two-wheeler loan?

Some online loan aggregators will take you through a process which will show you the loans you’re eligible for.