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17 Jun
  • Editorial Team

Buying a two wheeler is many a times your flight to freedom.

That first college bike or scooter is your grab at youthful romance. In the next few years it is your ticket to riding into your workplace in style. Somewhere in between, one lucky girl / boy gets to take a special pillion ride. A scooter, at a later stage, for the lady of the house comes with a fresh air of independence. It helps in not only dropping her children to school but running errands and taking control of her life.

Let's shift to a less urban context where owning a two wheeler is not just about mobility but also about greater financial freedom. A small town salesman can make more sales visits, a building contractor can access faraway projects and a village doctor can be faster in reaching places during an emergency. While some transform their bikes through 'jugaad' to carry more of their produce to the market. And yet others have gained access to more customers as they've saved big on traveling time with their bike. It's not just two wheels and a motor - to many Indians, it is what accessible dreams are made of.

So what is the easiest way to get to this dream?

Well, if you need to buy a bike, you may need some kind of financing. For most people of India, that means a loan from a financial company or bank, since that is the easiest way to secure finance for your bike. The biggest reason why bike financing is preferred by most customers is the ease of getting one. Compared to other loans, bike loans are easier to apply for, offer competitive interest rates, special schemes for women, easy documentation and flexible tenures.

Interestingly, for the rural population, buying a motorbike often means the first trip to the bank. It is through this loan experience that they take their first steps towards better prospects in their venture or their work by entering into the organized financial system, thus, driving the financial inclusion agenda as well.

There are quite a few questions that'll pop up in your mind if you are considering financing a two wheeler for the first time. Will you be eligible for a loan? If so, how much? What are the interest rates like? How much EMI should you expect? What documents will you need?

That is quite an exhausting list of questions, so let's get started on some useful information that will clear all your doubts regarding a two-wheeler loan.

Here is what you need to know:

Hero FinCorp

Loan eligibility: When you begin to check your loan eligibility, you may be asked to furnish a few details like your current city, salary, residence type, age, type of two wheeler, your employment status, PAN number & Loan Amount requested etc.

If you are checking eligibility online, then after filling in the basic details on a website, like, an executive from the financial company will give you a quick call. They will collect additional details, answer any questions and walk you through the entire loan process.

The financial company will check your credit history before working out your eligibility. Based on all the details you provide, the financial company will get back to you on your loan status. If you are a student or housewife with no source of income, your in-house 'financer' or 'co-borrower' (like your parent or husband) will be considered for your credit score.

For being eligible for a two-wheeler loan in India, few of the key criteria are -

  • As a working professional, you need to be at least 21 years of age while applying for a loan and not more than 60 years when the tenure of your loan ends. For people who are self employed, the limits are 21 years and 65 years.

  • There may be a minimum amount that the applicant must earn per annum to be eligible for a loan. This minimum amount varies if you live in a metro or in a non-metro city. It maybe a little higher for self employed applicants.

  • You should be staying at the same address in the same city for at least a year and have a phone number at your residence or office.

  • If applying as someone in a regular job, you need to have at least one year long work experience.

Please note the above is not an exhaustive list, the criteria may change from one financial company to another.

Interest rates: Financial companies take into account few factors when deciding the interest rate to offer like financial background and past history. A trusted financial partner will offer you a comfortable interest rate which is not too heavy on the pocket so that there is no undue stress or burden on your finances. Most financial companies today want to support the growth of their customers and be a partner for the long term, thus, one can expect fair rates as per ones profile and past re-payment behavior.

If for some reason you find that interest rates being offered are on the higher side, it may be due to a low credit score. A poor history of repayment can mean a bigger interest rate offered to you. If you have an opportunity to fix your credit score before you procure a loan, it is highly recommended, as it can make a significant impact on the loan interest rate offered.

What all documentation needs to be provided? The documentation is very simple, only a few KYC documents, like Identity and address proofs along with income proof, and a passport size photograph needs to be provided to check eligibility and start the loan process.

Choosing the right financial company to secure a loan: Read all the terms and conditions very carefully. The fine print, as always, helps you understand the nuances under which you receive the loan. Here are a few things to consider:

  • Fee and charges: Most people charge a one-time processing fee and include some additional charges here and there to sum up the costs for the paperwork.

  • Promised interest rate: This is where your credit history and other factors come into play. If you have a good credit score, be sure to drive a hard bargain by calling comparisons

  • Plan benefits: Are there any supposed benefits of choosing this partner over another? Does the lender offer a lower interest rate to existing customers? Is there an added benefit of choosing one lender over the other?

  • Insurance Policy coverage: How well are you covered throughout your loan tenure? Check for both accident and theft terms.

  • Customer service: Go through the lenders website, online review sites and forums where you'll hear what existing customers have to say. How soon do they respond to a genuine query or put you on a "Your call is important to us" line.

  • Turnaround time: Check out the processing time for the loan. Shorter the better as always

  • Additional offers: Buying it during the festival season. Many throw in offers from an assured gold coin to a chance to win a house to free insurance.

  • Prepayment benefits: Do they allow prepayments and is there a cap to the amount?

A word of caution here.

While the above pointers are important in choosing a particular financial company, it's also important to check the market reputation of the lender and the kind of customer service they usually offer. For example, you might have negotiated a low rate of interest for your bike loan from a lender but that might not have earned you an easy loan repayment process.

A single bounce of EMI, even though it might have occurred at no fault of yours, may lead to harassment. A lender with robust processes and technology will identify the reason for the EMI bounce quickly and take corrective action so that the customer is not inconvenienced. Thus, a trusted brand might be a better partner for financing than a party which is trying to sell you loans with cheaper interest rates.

One such financial company, Hero FinCorp which is part of the most trusted Business House 'Hero Group' of India, has designed its processes and technology to make the entire loan process Quick, Easy & Transparent. Built on the motto of 'Finance Made Easy', within a short span of time they have become the leaders in financing of Two-Wheelers in India.

With all questions answered about the bike financing process, let's come to the main point and understand this -

What are the benefits of taking a two-wheeler loan in India?

  • It's very easy to apply for a bike loan. Online loan application has definitely eased up the entire process and also made it faster to obtain finance. Also the processing time of such loans is as less as 2-3 days.

  • Due to the demand in bike loans and the number of players in the market, you can get loans that are extremely competitive rates.

  • A lot of financial companies offer special discounts for their women customers

  • There are several options to get loans even in rural areas where there are no banks. Non-banking finance companies, which have a much larger reach in the rural areas, can be accessed by rural people who do not have access to banks or have been rejected by banks due to their low credit score.


A customer today is spoilt for choice. And technology provides ready access to information that can give you the upper hand. Use it to your advantage. You can be anywhere in India and still get access to a two wheeler loan within minutes of making an enquiry. Many lenders have their representatives stay in constant touch with their customers updating them on schemes and payment due dates, ensuring they don't accidently miss their EMIs.

Your dream starts with just one vehicle but you'll be amazed to know that many people refinance multiple vehicles over the years with the confidence and support of a reliable financial company that becomes the backbone of a thriving business. Hence, take the first step by choosing the right partner in your journey to success.

If you have any further questions about taking a bike loan, please leave a comment and we would love to answer it for you.

Did You Know


The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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