5 Basics Of Bike Finance You Should Know Before Applying

The daily commute to the workplace has become increasingly expensive and time-consuming over the past few years. With fuel prices at an all-time high, traveling in a four-wheeler has become costly, and with more vehicles on the road each year, the commute to work, even on public transport, has become a long and arduous task. Here know about 5 Basics Of Bike Finance You Should Know Before Applying.

Two-wheelers have emerged as the go-to option for commuters— saving both time and fuel to an enormous degree. Furthermore, if you work in sales, marketing, or any other job that requires frequent traveling to visit clients, two-wheelers enable you to make more trips in less time. 

Before going ahead and buying a two-wheeler, there are few fundamentals of Bike Finance you must know before applying for a loan:

Personal Bike Finance

  1. Two-wheeler loans are easier to pay off as they are relatively smaller loans, and they reduce the burden on your budget as you pay small monthly instalments instead of paying the full amount.
  2. They can also help boost your creditworthiness for other loans as they create a positive financial track record for you at a lesser cost than other loans, especially if this is your first loan. This makes it easier for you to get bigger loans in the future, such as for a house. 
  3. A loan can also improve your personal finance management, as a fixed monthly obligation of paying an EMI will automatically make you more careful about spending. 

Broader Range

Taking an EMI based bike loan also opens the doors to fancy bikes that would be out of your budget if you were going to make a full one time purchase, as the EMI price differential would be relatively small. Thus you will have access to a much broader price segment of bikes. EMI Stands for Equated monthly installment, it is a good thing to calculate bike loan EMI before applying for a bike loan, you can calculate it with bike loan EMI calculator. Steps to calculate EMI simply select your loan amount, interest rate and tenure and get the results in the form of payable EMI.


There are a few eligibility criteria required to take a bike loan:

  1. Minimum age is 18, and the maximum is 65. 
  2. Identity and residential proof will be required, and you must be residing in the same house for at least one year to show residential stability. 
  3. You must have a stable job of at least a year or be self-employed with income tax returns of at least two years. 
  4.  Along with a decent credit score, you must have a permanent telephone number, possess KYC and other required documents. 

Documents Required for Loan

Salaried person:

  • ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
  • Two recent passport size photographs
  • Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector, or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
  • Last 3 month’s salary slips/ Form 16/Latest ITR
  • Last 3 month’s bank statement is mandatory

Self Employed:

  • ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
  • Two recent passport size photographs
  • Address Proof: Driver’s License /Voter’s ID/Utility Bill/Passport/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector, or MNC Banks only. (All banks except corporation bank)/  Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
  • Latest Income Tax Return (ITR)
  • Last 3 month’s bank statement is mandatory.

Features of Loan 

  1. Banks and Non-Banking Finance Companies offer reasonable and flexible repayment plans, where you can repay your loan in durations varying from a matter of months to even a few years.
  1. These loans are hypothecated, meaning the bike purchased acts as collateral for the financial institution, and if you fail to repay the loan, they can take back possession of the bike and recover other costs. 
  1. The interest rate of the loan is the same and is not affected by the duration of the loan. However, the longer period you take the loan for the more overall you will pay to the Finance Company. This could be essential information when evaluating Bike loan interest rates

Choose The Finance Company Wisely 

Very often, companies advertise super-low interest rates, but they only have to offer the advertised rate to a fixed percentage of their customers. Moreover, choose a company that has an excellent track record and has a clear and transparent process of securing you a loan. 

Pay close attention to these factoids about Bike Finance before you apply for a loan.


Bike Finance is a very effective method to get a two-wheeler. which is a handy form of transportation at a reasonable monthly price that does not burden your day to day spending. EMIs are easily available, with flexible plans, making it easy to apply for a loan.

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