Published on May 19, 2022Updated on Nov 6, 2025
You can get a bike loan to get the two-wheeler you want without having to use your own money. It also comes with a slew of other advantages, making it a consumer favourite.
Traveling by bike is more convenient. It is less likely to be stuck in traffic, provides more mileage, and lets you to drive at your leisure. Thanks to two-wheeler loans, purchasing a bike has also been easier. Salaried and self-employed people can apply for a two-wheeler loan and get the bike they've always wanted.
There are two types of loans: secured and unsecured. It's crucial to know the difference between the two to save money.
A secured loan is one that is backed by an asset. Your home, investments, or automobile could all be considered assets. The vehicle itself serves as security in a secured bike loan. If you do not pay your secured loan EMIs on time, the lender can sell your vehicle. Most two-wheeler loans are secured loans, especially when the borrower uses the funds to purchase a brand new bike.
Collateral is not required for unsecured loans. Unsecured loans include credit cards, education loans, and personal loans. Unsecured loans are easier to obtain, but they come with a high interest rate. This is because lenders don't want to take the risk of making a loan without collateral. Depending on the borrower’s choice and eligibility, they can also use a personal loan to purchase a two-wheeler. This is possible, since personal loans can be used for any purpose.
The best option is determined by several factors.
A secured two-wheeler loan may be the best option for you if you want a lower interest rate and have an asset that you can use as collateral. Also, because you're putting up an asset as collateral, your chances of getting a loan are better, and you might be able to secure a larger loan amount. The eligibility criteria for a two-wheeler loan are less stringent. At SMFG India Credit, a salaried or self-employed individual with a credit score of 650 or higher may be able to get a two wheeler loan. Depending on their eligibility and our policy at the time of loan application, the 2-wheeler loan interest rate can be as low as 20% per annum, with a flexible repayment tenure between 12 to 48 months.
Unsecured loans are less stressful than secured loans because you don't have to continually worry about your assets. Because unsecured loans are based on your credit history, it's critical to keep a good credit score, a minimum of 750 or higher. If you don't want to put your assets up as collateral and don't mind paying a higher rate, a personal loan may be a better choice. At SMFG India Credit, we offer eligible borrowers personal loans upto INR 10 lakhs* at attractive interest rates starting from 12.5% per annum, with flexible repayment tenures between 12 to 60 months.
The top 5 things to think about before taking out a two-wheeler loan in India are mentioned below:
1. Your Credit Score
Most reputed lenders require a minimum credit score of 650 or higher, with a good repayment history to consider an applicant for a two-wheeler loan.
2. Type of Loan
Choose a secured two-wheeler loan or an unsecured one based on an informed decision by weighing parameters like eligibility criteria, documents required, amount required, preferred tenure, and so on.
3. Loan Duration
The duration of loan is the factor to consider while looking for a two-wheeler loan. Two wheeler loans allow you a maximum tenure of 48 months, whereas personal loans can be repaid within 60 months. Use an two wheeler loan EMI calculator to determine the optimal tenure so that your debt can be repaid as quickly as possible, and at the same time, the resulting EMI will fit within your budget.
4. Nature of Interest Being Charged
Rates of interests can be broadly classified into two types in the lending world: fluctuating and fixed. A variable rate of interest is one in which the rate of interest increases or comes down over time, depending on a number of factors like, current market conditions, the remaining loan balance, your credit score, and the payments you've made previously (both timely and missed). You must also ensure that you understand the terms thoroughly before choosing a loan - some lenders mention interest rates charged on a monthly basis, whereas others mention the same on an annual basis.
5. Documents Required
a. Salaried Professionals
b. Self-employed Professionals
By taking advantage of a two-wheeler loan, you can make the dream of owning a bike a reality. So, consider the aforementioned factors and make an informed decision.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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