What is the Procedure to Apply for a Two Wheeler Loan?

Are you thinking of buying a new two-wheeler? It’s time to ditch public transport and own your own bike! Did you know that according to a recent survey, two-wheelers account for over 70% of all vehicles sold in India?

With the rise in demand for bikes, getting a two-wheeler loan has become easier than ever before. In this article, we will guide you through the entire process of applying for a Two-Wheeler Loan in India.

Two-Wheeler Loan

Six Easy Steps to Apply for a Two-Wheeler Loan in India

Step 1: Choose a bank

Choose a bank that offers competitive interest rates, flexible repayment options, and quick loan disbursal. Do your research and compare the rates and terms offered by different lenders before choosing one. Look for any hidden charges like processing fees, prepayment penalties, and foreclosure charges before making a final decision.

Step 2: Check your eligibility

Before applying for a two-wheeler loan, you need to determine if you are eligible for the loan with the chosen bank. Most banks have certain eligibility criteria that you need to meet. The eligibility criteria typically include age, income, credit score, and documentation requirements.

  • Age: To be eligible for a two-wheeler loan, you must be between 21 to 65 years old. Banks may have different age limits, so it is important to check with the bank before applying.
  • Income: You should have a stable source of income to be eligible for a two-wheeler loan. This can be as a salaried employee or self-employed. Banks typically have a minimum income requirement, which varies from bank to bank.
  • Credit Score: Your credit score is an important factor in determining your eligibility for a two-wheeler loan. A good credit score, ideally above 750, indicates to the bank that you are a low-risk borrower.
  • Documents: You should have all the necessary documents to prove your identity, address, and income. The documents required may vary from bank to bank but typically include a government-issued ID proof, address proof, income proof among others.

Step 3: Calculate your EMI using a Bike Loan Calculator

Once you have determined your eligibility, you need to calculate your Equated Monthly Instalment (EMI) using a Bike Loan Calculator. This will help you determine the loan amount you can afford and the tenure that suits you best. The two-wheeler loan calculator is available on most banks’ websites, and you need to enter the loan amount, tenure, and interest rate to get an estimate of your monthly EMI.

Step 4: Gather the required documents

To apply for a two-wheeler loan, you need to submit certain documents. The documents required may vary from lender to lender, but typically include

  • Identity proof (Aadhaar card, PAN card, passport, etc.)
  • Address proof (Aadhaar card, passport, utility bills, etc.)
  • Income proof (salary slips, bank statements, ITR, etc.)
  • Two passport-size photographs

Make sure you have all the required documents before applying for the loan.

Step 5: Apply for the loan

After gathering all the necessary documents, you can apply for the loan either online or by visiting the bank. Fill in your personal details, loan details, and upload the required documents. You may need to pay a processing fee to complete the application process.

Step 6: Wait for loan approval

After you have applied for the loan, the bank will verify your documents and assess your eligibility. If everything is in order, your loan will be approved, and the loan amount will be disbursed to your bank account. The loan disbursal time may vary from bank to bank.

Must-Know Tips to Get the Best Two-Wheeler Loan

  • Do your research: Compare the interest rates and repayment options offered by different banks before applying for a loan. Look for hidden charges like processing fees, prepayment penalties, etc.
  • Improve your credit score: A good credit score can get you a lower interest rate. Pay your bills on time, reduce your credit utilisation, and rectify errors on your credit report to improve your credit score.
  • Choose the right bike: Banks may have different Loan-to-Value (LTV) ratios for different bike models. Choose a bike that falls within the LTV ratio offered by the bank to get a higher loan amount.
  • Negotiate the interest rate: If you have a good credit score and a stable income, you can negotiate with the bank for a lower interest rate. You can also ask for a longer tenure to reduce your monthly EMI.
  • Opt for a higher down payment: A higher down payment will reduce the loan amount, which in turn will reduce your interest outgo. It will also increase your chances of loan approval as it shows you in good light as a borrower.

By following these tips, you can get the best two-wheeler loan deal that suits your financial situation.


In conclusion, a Two-Wheeler Loan is a convenient way to finance the purchase of a bike in India. By choosing a reputable bank and preparing all the necessary documents, you can make the loan application process smoother and increase your chances of getting approved. It is important to do your research and perform thorough comparisons to get the best deal. With proper preparation and patience, you can fulfil your dream of owning a two-wheeler and enjoy the convenience that comes with it.