two-wheeler loan interest

Two-wheelers have become a necessity in today’s fast-paced lifestyle. Only a two-wheeler like a scooter or a bike can save you so much time by quickly running through busy streets. Another significant aspect of owning a two-wheeler is that parking is easier and more convenient. It is cost-effective; thus, many ridesharing companies are leaning towards offering bike services to daily commuters. Not only does a two-wheeler help you escape the traffic, but it also fuels your passion for adventure. There are so many riding expeditions that you can be a part of.

Coming back to reality, you know two-wheelers are expensive. Some of you need sound financial backing to purchase a two-wheeler. Although there are easy finances for motorcycles, the interest rates are intimidating. Banks and other digital lenders offer two-wheeler loans with a substantial interest rate. Understanding the loan terms and estimated interest is better before you sign the legal papers.

What is a two-wheeler loan?

A two-wheeler is known to fulfill a middle-class family’s dream of having their vehicle. Motorbikes are inseparably linked with your day-to-day life. However, only one person can buy a two-wheeler in cash under extreme financial circumstances. Here comes the part of a bank or other online lender who offers you a loan for a two-wheeled vehicle and asks for personal loan documents. In a way, it enables you to purchase and repay the bank in equal monthly installments.

People tend to lean more towards bank loan EMIs than financing EMIs because they don’t want to pay a down payment. Lenders who offer two-wheeler loans are flexible with the interest rates if you have a good credit score. Moreover, they provide exciting interest rates, instant loans, and loans for used bikes.

Benefits of a Two-wheeler loan

A two-wheeler load has multiple benefits that enable borrowers to fund their purchases and repay in simple terms. Here are the advantages of a two-wheeler loan-

Easy Approvals and Affordable

Banks and other financial institutions offer most two-wheeler loans that are safe and transparent. These loans are easy and convenient to bear, from the interest rates to the scheduled monthly installments. The documents mention all the charges, which helps the borrower understand the repayment timeframe and amount clearly. Therefore, they can plan their finances accordingly.

No Cash Investment

Despite the digitalization of finances, running entirely out of cash can land you in trouble. Especially in sudden emergencies, cash payments are more accessible and faster. A two-wheeler loan enables you to keep your money to yourself while they take care of your purchases. All they want from you is an on-time monthly consolidation of the installments.

Helps Build Your Credit Score

When you get a loan, you will likely repay it in monthly installments. This practice of clearing debt regularly helps increase your credit score. As your credit score increases, you become more credible as a borrower. Additionally, sometimes you get loans at a low-interest rate.

The other perks of a two-wheeler loan are-

Easy Approval

Depending on your current financial situation and your ability to repay the loan on time, lenders promptly approve your loan. The approval comes faster because significantly fewer personal loan documents are required.


Most two-wheeler loans are EMI-based, which means you can get a loan and then have to start repaying through EMIs. There are multiple EMI structures a borrower can choose from according to their convenience. Also, with the help of an EMI calculator, one can calculate the monthly installments in advance. It helps them plan their finances every month.

Lucrative Interest Rates

Lenders charge attractive interest rates on the loan amount. Depending on your credit score, the interest rate can be lower. It will also help lower your EMIs and help you save money.

These benefits of a two-wheeler or personal loan help you manage expenses and plan your finances efficiently.

How to Apply for a two-wheeler loan?

There are multiple factors to consider before applying for a two-wheeler loan.

Firstly, you need to decide on which type of two-wheeler you want to purchase from the loan amount. It helps you apply for the exact amount of money you need. If you apply for a bank loan with an estimated amount, you end up paying more than you need. It limits not only the amount of the principal but also the amount of interest and the EMI, which can mess up your monthly budget.

Next, checking your eligibility is essential to apply for a two-wheeler loan.

There are several eligibility criteria for such a loan. The requirements include- your age, residential status, and minimum gross income. If you don’t have a job, you can still apply for a personal loan if your credit score is higher.

Lastly, the documentation is straightforward and fast with a two-wheeler loan. You need a significantly smaller number of documents to apply for a two-wheeler loan. You can apply for a loan if you have all the personal loan documents required.

How is the two-wheeler loan interest calculated?

A two-wheeler loan is a type of personal loan with an interest rate. Once someone gets a two-wheeler loan approved, the first concern would be the interest rate and how it is paid back. What happens if you get an overview of the loan amount and value before applying? That would be a breakthrough idea. So, here you get to know how a two-wheeler loan interest is calculated-

Your interest rate is dependent on the following factors-

  • The two-wheeler you are looking for
  • Your age
  • Your credit score
  • Loan tenure
  • Existing financial commitments or debts
  • Annual Income statement
  • Your lender

Many lender websites now have an online tool to calculate the EMIs but if you prefer manual calculations, then go for the formula- EMI = [P x R x (1+R)^N]/[(1+R)^N-1]



A two-wheeler is the best substitute for a car in terms of pollution control and commuting convenience. Two-wheeler loans are a blessing for middle-class people who need the help of quick funding. Now that you know everything from eligibility to get a two-wheeler loan to calculating the estimated EMI, you can go on a ride on your dream bike.

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