Two-Wheeler Loans
- "Two Wheels, One Dream."
A two-wheeler loan allows you to purchase a motorcycle or scooter without having to pay the entire amount upfront, making it a more affordable option.
Benefits of Two-Wheeler Loan
- Get the funds you need to buy the bike you want.
- Use a guarantor or co-applicant to get the money you need.
- Get affordable interest rates.
- Enjoy a wide spectrum of loan repayment periods.
- Repay your loan in affordable EMIs.
- Pay every EMI on time and build your credit history.
- Flexible Repayment Terms: Two-wheeler loans typically offer flexible repayment terms, allowing you to choose a tenure that suits your financial situation.
- Quick and Easy Approval: Two-wheeler loans are often approved quickly, allowing you to purchase your vehicle without delay.
Characteristics of Two-Wheeler Loan
- Loan Amount: Two-wheeler loans typically cover a significant portion of the vehicle’s on-road price, often up to 90%.
- Loan Tenure: The repayment tenure for two-wheeler loans is usually between 1 to 5 years, depending on the borrower’s preference.
- Interest Rate: Two-wheeler loan interest rates can be fixed or floating, and they vary based on factors such as the loan amount, tenure, and the borrower’s creditworthiness.
Loan to Value (LTV) Ratio: The loan amount is usually determined based on the on-road price of the vehicle and the lender’s maximum LTV ratio, which is typically up to 90%.
Two-Wheeler Loan - Eligibility Criteria
| Two-Wheeler Loan Eligibility Criteria | Constraints |
| Age | Minimum - 21 years at the time of application |
| Maximum - 65 to 70 years at the end of the loan tenure | |
| Monthly income | Rs.7,000 |
| Credit score | Above 750 |
| Loan amount | Up to 100% of the value of the vehicle |
| Residential stability | Must be staying at the current address |
| Work experience | At least 1 year |
EMI Calculator for Two Wheeler Loan
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Calculate Your Two Wheeler Loan EMI
The formula to calculate EMI for a Two Wheeler Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.
Calculate Your Two Wheeler Loan EMI
The formula to calculate EMI for a Two Wheeler Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.
Documents required for Two-Wheeler Loan
Photo Identity Proof:
- Passport
- PAN Card
- Voter’s ID
- Aadhar Card
- Driving License
Vehicle Proof:
- Details of the vehicle being purchased.
Income Proof:
- Salary slips (Last 3 months)
- Bank statements for the last 3 to 6 months (showing salary credit)
- IT Returns
Address Proof (Any one):
- Passport
- Utility Bill (telephone, electricity, water, gas) – less than 2 months old
- Aadhaar Card
- Driving License
- Ration Card
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A two-wheeler loan is a type of loan specifically designed for purchasing a two-wheeler vehicle, such as a motorcycle or scooter.
You apply for a two-wheeler loan from a bank or financial institution. If approved, the lender provides you with the funds needed to purchase the vehicle. You then repay the loan in monthly installments over a specified period, typically 1 to 5 years.
Eligibility criteria vary but generally include factors such as age, income, employment status, credit score, and existing debt obligations.
Interest rates can vary based on the lender, loan amount, and repayment tenure. They can be fixed or floating.
Loan amounts vary by lender but generally cover a significant portion of the vehicle’s cost, often up to 90% of the on-road price.
- Apply for loan
- After a quick eligibility check, get instant approval
- Pick the amount and repayment tenure according to your choice
- Purchase your new bike