What is Two Wheeler Loan?

You can avail a two wheeler loan secured against your two wheeler (The two wheeler is the collateral).You can also avail a two wheeler loan without collateral. Your bank would charge you a higher rate of interest if your two wheeler loan is unsecured.

Why Two Wheeler Loans?
Maintain Living Standards

Amount of Loan

The maximum amount of loan that you are entitled to is Rs.60,000/-. However, this amount can be increased to Rs.1 lac if you go for feature rich two-wheelers.

Low on Price

Processing Charge

You will be charged with 1.00% of the loan amount as processing charge. The minimum amount that you need to pay as processing charge is Rs.500/-

Rider Benefits


The repayment must be done in a maximum of 48 months. The full amount should be repaid in 48 Equated Monthly Instalments.

Tax Benefits

Prepayment Charges

There are no prepayment charges.

Types of Two Wheeler Loan:
There are 2 types of Bike loans available in India, based on the security of the loan:

• Secured Bike Loans: You generally take these loans against a security or collateral that may be an asset, such as home, bonds, lands, etc. While these loans are easily available and have comparatively lower interest rates than unsecured loans, they also carry the risk of losing your asset, in case you are unable to successfully pay off your loan amount.

• Unsecured Bike Loans: At first this may seem quite lucrative, consider they require no collaterals to be declared for loan sanction, but it eventually makes pay a much higher price for vehicle than you should have paid, if you had taken a secured loan. But first time buyers. Sometimes a secured loan is not a possibility. Hence, this type of loans is the only option that remains.

Eligibility Criteria for Two Wheeler Loans:


Generally, for two wheeler loans, the banks allow a ripe age of 18 years as the minimum acceptable age for a loan application in India. This is not only because of the factor of repayment capacity, but also the fact that many students use bikes as their form of commute to their institute or college. Some banks may require the applicant to be at least 21 years, too. The maximum age for loan application is generally around 65 years for most banks.


This is absolutely essential because banks sanction your loan application based on the fact that you are a salaried individual or at least self-employed, involved in some sort of business or have a source of regular income.

Employment Tenure

Now there are banks that offer special loans to students who are not employed yet, with a system that works similar to an education loan, but if you are applying as non-student, some banks may want to check your stability of income by requiring you to have worked with your current employer for at least 6 months.

Minimum Income

The minimum income requirement is really low for 2 wheeler loans and if you are living in urban areas and salaried, it would not need much trouble to cover for. However, it is always a good idea to check for the same because often the minimum income may be based on the loan amount.

Residential Requisite

Banks often require that an individual stay in a singular home as sign of stability in address for loan sanction because to avoid loan defaulters who change their residence often.

Permanent Numbers

Some banks may require to provide a permanent land line number, where they can get in touch with you, whether it is your residence or your office landline.

Credit Score and Ratings

For those who are just starting off their financial portfolio, this loan is a very good path to start with. However, if you already have a credit history, make sure it is good. The most accepted credit score, by banks, that is considered is CIBIL score.


To prove the above, you are required to furnish some documents, which are comparatively lower for two wheelers, when compared with other loan products. Read the next section to know more.

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