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Applying for a Two Wheeler Loan? Here are some Do's and Don'ts To Be Aware Of

Published on Jul 12, 2022Updated on Aug 29, 2023

Applying for a Two Wheeler Loan? Here are some Do's and Don'ts To Be Aware Of

With the increasing population, flats are seeming to become smaller, roads are seeming narrower. Thus, to avoid congestion and save time, the importance of two-wheeler vehicles is growing. Two-wheeler vehicles are much cheaper as compared to cars, and are easier to maintain. They are also more convenient in terms of commuting and parking requirements. . In today’s time, especially after the pandemic, the need for an affordable and convenient means of private transport is driving the moment for the purchase of  two-wheelers. Just as cabs, even bike ride services are being offered as they’re cheaper.

Even though two-wheeler vehicles are cheaper than four-wheeler vehicles, it is a substantial amount. To provide financial assistance while purchasing a bike, two-wheeler loans are provided.

What is a Two Wheeler Loan?

A two wheeler loan is an amount lent to eligible borrowers for the specific purpose of purchasing a bike/scooter of their choice. The amount borrowed, plus interest can be repaid in Equated Monthly Instalments (EMIs).

How to Apply for a Two Wheeler Loan?

Here are some ways in which you can apply for a Two Wheeler Loan:

  1. Approach your two wheeler dealer for financing. This is one of the easiest ways, however, if you wish to find your own financier, then you can follow the next few steps.
  2. Research online for reputed lenders who offer two wheeler loans. Go through their eligibility criteria carefully, as well as their offerings. If you meet the criteria and if their offer sounds good, you can apply online or visit the nearest branch

Prepare your two wheeler loan documents. Most lenders will require you to provide basic documents such as PAN & ID proof, Driving licence and address proof (residence and employment), income proof and bank statements. SMFG India Credit offers two wheeler loans for eligible applicants at attractive interest rates and repayment tenures up to 36 months. Please note that at this moment, we do not provide bike loans to those interested in buying electric vehicles or second hand bikes.

Must Read: What Are the Benefits of Owning a Two-Wheeler?

The Eligibility Criteria for Applying for a Bike Loan with SMFG India Credit are:

  1. The individual must be a salaried or self-employed person.
  2. Applicant must be a resident Indian
  3. The age limit is between 21 years to 65 years of age.
  4. The person shall be an Indian resident and have a minimum income of INR 10,000 per month.
  5. CIBIL score of 620 or higher with a good repayment history.

Do’s and Don’ts to be Aware of While Applying for a Two Wheeler Loan:

A two-wheeler is an asset, and while building an asset it is important to take all the right steps to avoid hassles in the future. To prepare you for such an event, below are some do’s and don’ts while applying for a bike loan.

Do’s for Two-Wheeler Loan:

Some of the things that are advisable to do while applying for a two-wheeler loan are:

  1. Eligibility
    The first thing to do before approaching a financial institution is to understand the eligibility criteria for applying for a bike loan. If you fulfill the same, you can move ahead with your application. 
  2. Research the Market
    Doing some homework does not hurt. You shall research the available, affordable, and reasonable financial institutions providing bike loans. Check their terms, including the two-wheeler loan interest rate and compare among lenders before shortlisting your options. 
  3. Co-Applicant
    In case you do not fulfill the minimum eligibility criteria, getting a bike loan can be a hassle. A provision for such a situation is available. If you add a close family member with a stable income and good credit score as a co-applicant to your two-wheeler loan, it could be possible to get the financial support you need at favorable terms. 
  4. Debt Clearance Options
    Once you take up a loan, you need to repay the same in installments. It is in your interest that you choose a financial institution that provides you with flexible debt clearance options. Choose a repayment option that suits your pocket and does not make it difficult in managing your budget. You can use our online two wheeler loan EMI Calculator to make an informed decision.   
  5. Terms and Conditions
    You shall choose a lender that helps you understand and clear all your doubts about the bike loan. You are allowed to take your time, and the lender will provide you assistance in the same while making a decision. Understand the terms and conditions thoroughly before signing any loan agreement to avoid future hassles.
Must Read: How to Buy a Bike on EMI?

Don’ts for Two-Wheeler Loan:

Some of the things one must avoid doing while applying for a bike loan are:

  1. Delay EMI Payments
    Once you have taken up a bike loan, ensure that you do not delay on the EMI repayments. Any delays will add penalty charges and affect your creditworthiness. Defaulting on your loan may cause you to lose your bike, as the lender will repossess it to recover their dues.  
  2. Loan Amount- Down Payment and a Small Amount
    While taking up a two-wheeler loan, avoid taking up a zero-down payment option. It may seem simpler, but it will be heavy on your pocket while repaying. Taking up a small or minimum amount of loan will make things simpler and not impact your budget. 
  3. Authorized Lenders
    It is in your best interest to borrow from an authorized lender that is registered with the RBI like SMFG India Credit. Thoroughly research a lender before applying, and make sure that they are genuine.   
  4. Additional Fees and Charges
    Avoid signing loan agreements without completely understanding any additional fees and charges that may be applicable such as processing fees, late payment fees, etc. 


We hope that this article will help you in making an informed decision while applying for a two wheeler loan. If you are interested in applying for a SMFG India Credit two wheeler loan, click the “Apply now” button and select “Two wheeler loans”. Alternatively, you can visit your nearest branch. 

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.