Secrets of Bike Loan Interest Rates: What You Need to Know?

two wheeler loan

India is a growing economy, and each year sale of two-wheelers is on the rise. It is estimated that there was a 4.7 per cent increase in Dec 2022. Two significant ways to buy a new bike are to make a down payment or take a two-wheeler vehicle loan. Most people opt for the latter since it is a viable option, and you don’t pay a considerable amount from your pocket. 

In this blog, we’ll take a closer look at the bike loan interest rates, including how they work and what to consider when applying for one.


Before we jump into the metrics of acquiring a two-wheeler vehicle loan, we must first know the criteria for obtaining a loan. The first criterion is you should be at least 18 years old and not be over 65 years of age when your loan matures. Second, you must have been employed for at least one year with six months in your current organisation; if you are self-employed, you should have been in your existing business for at least one year. You must have a good CIBIL score. Meeting all these criteria can help you get an attractive interest rate on your bike loan. 

Down Payment

A down payment is an upfront amount to buy a bike via the finance method. A reliable lender can help you with the loan process. The top two-wheeler loan providers typically finance up to 95% of the total bike loan amount. There might be some cases where you do not require to pay any down payment, but the interest rate may be higher.

Type of Income 

If you plan to buy a two-wheeler via a loan, the first thing a lender will check is the source of income. You need a steady income if you want a lower interest rate. The higher your income, the better your chance of getting a lower interest rate, as your income helps lenders formulate the interest rate. It becomes feasible for salaried people to get a lower interest rate as their income is stable and reliable.

Type of Bike

The type of bike you would like to buy will affect the rate of interest for your EMI. The expensive and high-performance bike usually has lower rates since the loan amount is much higher and they have better resale value. Economical bikes often have higher rates of interest. Some popular bikes may also have lower interest rates because they are more likely to be sold second-hand.  


The factors mentioned in this article influence your two-wheeler’s interest rate. Have a good CIBIL score to get a loan quickly. An applicant with a CIBIL score above 750 gets a loan without hassle. You should also consider the type of two-wheeler you are considering buying since it affects the interest rate a lot. 

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