A two-wheeler loan is a loan given by a bank or an NBFC (Non-Banking Financial Company) to an individual to help them buy a bike or scooter when they do not have enough funds to buy the same. This can help the individual with transportation to get through the city traffic with ease. Bikes are expensive, so it is generally very hard for a person to pay the entire amount in one shot especially if one has other financial obligations for the month. So, the two-wheeler loan goes easy on the pocket as one can pay EMIs on a monthly basis and repay the loan over a period of time.

Features of a two-wheeler loan:

1. In most cases, 100% of the bike amount is given by the bank/lender. In other cases, the bank/lender provides up to a certain percentage of the value of the vehicle

2. Tenures range from 1 year to 4 years in most cases. Some lenders provide tenures up to 5 years as well to repay the loan

3. Since a two-wheeler loan is a secured loan, the interest rates are generally low. The interest rate on a two-wheeler loan ranges from 9% to 17% depending on one’s credit profile, relationship with the bank and other factors

4. Pre-approved loans are available for existing customers of the bank and these are disbursed very quickly

5. Documentation is very minimal, easy and fast

6. In some cases, the registration and the insurance charges are also covered by the loan

7. Many banks offer easy repayment schemes as per the customer’s convenience. They can choose for the EMIs to be auto-debited, use post-dated cheques and more


1. Must be a minimum of 18 to 21 years of age

2. Must be a salaried employee or self-employed individual

3. Must have a good credit score and good credit history

4. Must have a regular monthly income 

5. Must have a good relationship with the bank

This can change based on the bank/lender you are borrowing from. Do check your eligibility with the bank before applying. If one does not meet all the eligibility criteria, there is still a possibility of getting the loan approved, but it will have a higher rate of interest.

To apply for a two-wheeler loan, click here.