Is it Better to Go for a Loan to Buy a Two-wheeler

March 04, 2019


Be it visiting the nearby market to buy groceries, daily commute, or travelling through the city, two-wheelers are now the most practical mode of transport. The popularity of two-wheelers in India is as such that almost every household now has at least one two-wheeler. An increasing number of buyers now take a bike loan for purchasing a two-wheeler due to the number of benefits it offers.

If you too are planning to purchase your dream bike, here are some reasons why you should prefer a loan against buying it with your own money-

1. Reduced Financial Burden

Needless to say, the most significant advantage of taking a two-wheeler loan is the reduced financial burden. Purchasing the bike with your own money can put stress on your financial health.

With a loan, you only need to make a small down payment while the lender would pay the rest of the money. You can then easily repay the loan in easy monthly instalments. Moreover, some of the banks now also offer zero down payment bike loans.

2. Low-Interest Rate

Thanks to the rising popularity of two-wheelers in India, the interest rate on bike loans have fallen considerably in the past few years. The interest rate can range from 10%-25% depending on the lender you consider for the loan.

Moreover, factors such as good CIBIL score and existing relationship with the lender can also help you get a cheaper deal.

3. Improve the CIBIL Score

Your CIBIL score or credit score is now a primary consideration for the lenders. If you are looking for a loan such as a home loan or personal loan, the lender will only approve your loan application if you have a high CIBIL score.

As the amount of loan to buy a two-wheeler is generally low, it is easier to repay this loan on time. This helps in improving your CIBIL score and makes you more eligible for loans you might take in the future.

4. Online Two-Wheeler Loan

To offer enhanced convenience to the borrowers, many top lenders now allow you to avail two-wheeler loan online. This eliminates the need for the borrowers to visit the lender personally to apply for the loan.

From submitting the loan application, documentation, to the approval of the loan, everything is done online to help borrowers save time and efforts.

5. Reduced Eligibility Requirements

Every lender has its own eligibility requirements based on which it approves and rejects loan applications. A bank loan for bike has minimum eligibility requirements which even an individual who has just started working can easily fulfil.

This makes two-wheeler loans more accessible to people across every income range.

Should You Take a Loan for Purchasing a Two-Wheeler?

As you can see, several reasons make a loan to purchase a two-wheeler an excellent choice. With attractive interest rates, flexible repayment tenure, and a host of other benefits, the loan is the easiest way to fulfil your dream of purchasing a two-wheeler.

Consider these benefits if you are planning to purchase a two-wheeler to make the right decision.



The contents of this document are meant merely for information purposes. The information contained herein is subject to update, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient’s own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. ‘lClCl’ and the ‘I-man’ logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.