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13 Feb
  • Editorial Team


The joy of riding a motorcycle is incomparable. From road trips for a little soul searching to your everyday commute to work; your trusty bike will take you places. However, saving up to buy the bike of your dreams can be a stressful process. Not only will it take a long time but it will also tie up your resources that you could use for other purposes.

A bike loan is the best solution to all your financing woes and if you choose the right two-wheeler loan, you can make the purchase without any stress and without compromising on the bike you purchase and other financial commitments you have. With so many lenders out there offering attractive two-wheeler loans, getting a loan that is just right for you is very important.

Here is a five-point guide that will help you do just that.

Loan Amount

Two-wheeler loans are some of the most accessible loans in India. The loan amount depends on your eligibility and the price of the bike you wish to buy. Hero FinCorp offers a loan amount between Rs 10,000 and Rs 1, 00,000 and has an LTV ratio of up to 95%.

For example, the lender will have a different loan-to-value (LTV) for a high-performance bike and for a daily commuter bike. Also, check your eligibility based on your financial status and credit score. Fulfilling all the eligibility criteria of the lender, not only increases your loan approval chances, but you can also get higher LTV.

Do Thorough Research

While choosing the lender, you need to conduct thorough research regarding the loan processing time, processing & administrative fees, and repayment options. 

You also need to check the pre-payment charges, late-fee charges, insurance cost, and other hidden clauses that may affect your loan application. 

Apart from checking the lender profile, you need to check how well the loan will work for you. Use a bike EMI calculator to estimate your EMI amount and your ideal repayment tenure. Ensure you do not over borrow and miss out on any payments.

Talk to the loan executives at length if you do not understand any of the clauses and phrases on the loan documents. This is necessary to ensure that you do not sign up for anything that is not suitable for you.

Get the Best Rates

The interest rate on bike loan depends on your employment status, income status, residence type, and creditworthiness.

If you have a good credit score and healthy finances, then you can ask for a better rate on the loan amount. Do not consider just the interest rate to decide whether the rates offered are the best in the market. Check the Annual Percentage Rate (APR) that includes interest expense and other fees and cost involved in taking the loan. It is a more effective rate when comparing loans.

Look for Special Offers

To boost credit growth and provide greater benefits to customers, financial institutions periodically come out with special loan offers. For example, up to 100% financing, zero down payment, zero processing fees, lower interest rate, free insurance and other benefits.

Taking a loan during such an offer period helps you save a significant sum of money on EMI during the loan tenure. 

Repayment Plan

Before signing the loan document, always have a repayment plan ready and avoid having a long repayment tenure. A longer repayment tenure results in losing more money in the form of interest. 

Going for a plan like flexible EMIs will help you repay the loan quickly and ensure that you never miss any EMI payments. It is also advisable to make a high down payment to lower your EMIs and reduce the repayment tenure. 


It is important to choose the right lender to finance the purchase of your bike to ensure a hassle free experience. Suitable loan terms and an appropriate loan amount that you can repay without breaking the bank are imperative to ensure that your investment is a sound one.

While it may not be the largest investment you make, you will depend on it for your daily activities. Therefore, do your research and find the plan that best suits your requirements before you sign on the dotted line.

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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