How to apply for bike loans

Bikes are becoming a necessity these days, particularly for the younger generation including college goers. And buying a bike is also easy because 100% upfront payment is not required if you don’t have it. Loans for any amount and on easy installments are easily available in India and you can make a physical application or apply online. You can get 80% loan and, in some cases, even 90%.


Bike loans are available from banks as well as finance companies. The showroom which sells you the vehicle also provides finance and loan schemes. Additionally, motor cycle companies in India team up with banks to provide attractive loan benefits to the customer. Such a loan provides faster and easier documentation and processing plus repayment term is longer. Flexible installments are available, generally ranging from 12 to 48 to even 60 months.


Loan types

Loans are available for all types of bikes – new or used. There are essentially two kinds of bike loans available in India - secured and unsecured.

Secured bike loans:

  • You have to pledge a security or collateral which may be confiscated if loan is not repaid.

  • Has lower rate of interest as compared to unsecured loan.

Unsecured bike loans:

  • You may need to pay 10-15% of the bike’s value as down payment.

  • Has higher interest rate since there is no security.

Interest rates

Most banks have similar loan requirements and interest rates. If you take it from the bank where you have an account you might get a slightly more competitive interest rate. You also can bargain for better loan features if you are a long-standing customer of the bank.

If you repay the loan amount before the end of tenure, you may not be charged prepayment or early foreclosure charges.

What documents you have to provide:

  • Identity proof – driving license, PAN card, passport copy or ration card.

  • Address proof – passport copy, utility bill, bank passbook.

  • Income proof – latest salary slip, Form 16, six-month bank statement (for salaried person); two years’ ITR, six-month bank statement (for self-employed).

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