Heres How You Can Finance a Bike in India

Purchasing a two-wheeler is not as cheap as people often tend to think. If you go for the best of the models from India's top brands, their cost might even be slightly higher than the value of some particular four-wheelers.

Many people flow with their emotions when it comes to buying a two-wheeler and let their love for bikes overpower their ability to make level-headed judgments. Such situations often lead to misguided vision and debts at the end of the day.

Therefore, it is imperative that one knows how to finance a bike and doesn't rush with the decision.

To help you with the same, we have jotted down some crucial points to simplify the task:

1. Build Your Credit Score

Your credit points or credit score is an essential factor in deciding your eligibility for the loan. Not only this, but a healthy credit score can also quickly strengthen your odds of being granted the loan and makes you seem more reliable to the lenders.

Therefore, it is suggested to clear all your debts before you apply for a bike loan to prevent your image from degradation in front of the financers. Make sure you keep the credit history as healthy as possible and process all payments on time.

2. Knowing Your Financing Options

People new to such situations often think that only organizations like banks and credit unions help you avail loans. But it's not true. Although, yes, such institutions are always a better and more reliable choice, you must know your other options. Your bike dealers also offer loan-granting facilities as well as motorcycle manufacturers do, too.

Additional Read: How to Choose the Best Two Wheeler Loan

3. Compare All the Lenders Thoroughly

The only way to grab the perfect deal for you is to research extensively and keep all the data in front of you. Find out who the top lenders in your city are, go to their online portals (if available), and read about them, or if possible, you can also consult them in-person and then apply for a bike loan online.

Clear all your doubts regarding their schemes, loan lending process, terms and conditions, documentation required, eligibility criteria, debt clearing conditions, rate of interests, EMIs, etc.

Reason and compare all the lenders in your list and then draw a conclusion.

4. What Not to Do?

Besides knowing how to finance a bike, it is also vital to know how not to. Do not fall for the notion that you have to purchase a bike no matter what happens, even if you are not in a condition to afford it. Loans are an option to help you through the financial crisis, but you must be able to repay the loan within the agreed period, with all the interest, lest you shall fall deeper in debts.

Moreover, don't keep assets more expensive and crucial than your bike as collateral, such as your home. You obviously wouldn't want to risk everything for the sake of a new bike.

Last but not least, it's suggested you do not buy the two-wheeler on your credit card. In case you are unable to repay the debts, you might face disastrous consequences.


So, putting it in a nutshell, the most critical point is to combat indecisiveness with maturity and research. Make sure you have all the information on the table before you make a final decision.

You may even consult your friends or family who have been in the same spot as you are. Don't let your mind stray on emotional thoughts regarding your new vehicle, and be reasonable.

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