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20 Mar
  • Editorial Team

Riding your dream bike is a thrill unmatched. Right from the time you cross 18 years of age, getting a motorcycle becomes one of the top priorities. Whether you are a student or a young guy with a new job or an established person with a family to support, getting a motorcycle is definitely not as easy as riding it.

Or is it? Motorcycle financing could definitely make things simpler for you, but there are many things you must consider before going on that route. Let’s dive deeper into the details.

Understanding the loan

Before you decide to zoom away on your dream bike, there are certain things to be kept in mind, most importantly the amount of loan you can afford. There are various aspects to determine that:

  1. Use a loan calculator: Why stress your brain with all the calculations? Loan calculators are simple tools that will tell you about the monthly installments you would need to repay on the basis of the loan amount, tenure and interest rate.

  2. Know the interest rate: Interest rate is one of the things you must really focus on while taking any kind of loan. In general, two-wheelers have a flat rate of interest. Hence it is easy to compare and look around to find the lender that offers the optimum interest rate.

  3. Loan duration: Another important thing to consider while taking a loan is the loan tenure. If you have a stable financial status and/or want to repay the loan quickly to clear your credit record, then shorter duration is good. If you have a weaker financial situation and/or have other heavy expenditures, then go for a longer tenure.

  4. Application process: Here, we simply look at the convenience. In most cases, you need to first apply for the loan and wait while the lender determines if you are eligible for the loan. If that is cleared, you would need to submit all the relevant documents to complete the application process.

  5. Fees and other charges: You need to pay the principal amount and the interest rate, but that is not all. There are other charges involved too, most of which you would need to pay upfront.

Processing fee is the amount charged for simply processing your loan application. Prepayment fee is the amount charged if you want to pay off your loan before the prescribed tenure is over. Late payment fee is another charge that you must pay if you crossed the installment payment deadline.

Choosing a reliable financer

Taking a loan is a transaction between two people with mutual benefits. If the financier wants to be sure about your credibility, you must do the same. Go for someone who is considerate of your needs and is flexible enough. Alternatively, you can always choose the safest route and go with Financial Institute.

Documentation and eligibility

Getting a loan is not like buying a commodity. After you submit your application, the lender will determine if you are eligible to get a loan. Following factors are considered:

  1. Age: Generally the minimum age for acquiring a loan is 21 years, but it could be relaxed to 18 years if other factors play out in your favor. Generally, financiers are hesitant to give loans to young people.

  2. Employment: Employment is perhaps the most important factor that decides the outcome of a loan application. If you have a stable job at the same company for a long duration, it works as an added bonus. Freelancers and self-employed people are not generally preferred, but it could work out well if you have a good financial statement.

  3. Income: Your income is also an important factor to consider. In case of two-wheeler loans, lenders do not generally care about a minimum income as long as it is stable.

  4. Credit score: A very important thing that lenders consider is your credit score. Credit score comprises of your financial statement, your credit card payment and previous loans. A good credit score means the lender can trust you with the loan.

If you are found eligible, your loan is forwarded and you need to present the necessary documents:

  1. Photos: Photos are absolutely necessary, so make sure you have a bunch of latest, colored, passport-sized photographs

  2. ID Proof: Nothing would happen without a valid, government-approved ID proof. Voter ID card, driving license and Aadhar Card are some of the ID proofs that are accepted everywhere.

  3. Address proof: Every lender would require an address proof of your residence. It serves as a point of contact if you fail to repay the loan. In case you live on rent, provide the utility bills of past few months.

  4. Employment proof: Some lenders also require a proof of employment that certifies that you are currently employed. However, it is optional and can be waived off.

Finding the best bike

Now that all the tedious formalities are done, it is time to get your dream bike. Chances are that you already have one on your mind. If you haven’t, there are certain things you must consider:

  1. Decide if your bike is your luxury or necessity. If you are buying out of necessity, then go for the features that are more practical and less shiny.

  2. Go for bikes that have excellent reviews and a proven track record to go a long way, without incurring the overhead of servicing and repairs.

  3. Keep your current income in mind, not future. A common mistake people make is buying something on the basis of their potential future income, which can land you in some unforeseen trouble.

Test drives and riding experience

Once you have locked down the bike of your choice, it is time to go for a test drive. Since you are taking a loan for it, it is important that the bike is absolutely perfect for you. Be attentive during the test drive and look for any flaws. As a tip, you can create a checklist of things you expect from your dream bike, and see if the bike fulfills your expectations. Go ahead with the purchase only if you are completely satisfied with the performance.

Final considerations

With everything said and done, it is time to purchase your motorcycle. But before that, there are some last things you might want to check, like the added costs.

Instead of blindly following the dealer, give your own opinion. If you don't want a certain accessory, remove it and get the cost deducted. If you want to get insured under a different company, inform the dealer.


Getting your own bike is a thrilling experience by all accounts, and getting an easy loan makes things go even smoother. However, things could go sour really fast if you commit even a basic mistake. Fortunately, the tips we shared above will ensure a Hassel-free ride 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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