Bike loans and personal loans are two different entities. Both of them have different parameters to gauge the borrower’s credibility before approval. Many banks and private lenders offer personal and two-wheeler loans after doing a background check of the borrower and verifying the requisite documents. In today’s time, it has become a lot easier to get a personal loan or a bike loan as these loans are sanctioned without any collateral security and can be easily repaid in Equated Monthly Installments (EMIs).
Difference Between a Personal Loan and Bike Loan
A personal loan is usually taken to meet any emergency requirements and can be availed without giving any reason to the bank. Bike loan is availed to buy a two-wheeler of your choice as it is an easy option for prospective buyers.
Additional Read: Minimum Down Payment for Bike Loan
- Interest rates on personal loans are higher as compared to Interest rate on two-wheeler loans. Therefore, they should only be availed in case of dire need.
- Personal loans are available from Rs. 02 lakhs to 20 lakhs for any two-wheeler depending on your needs. Bike loans are sanctioned as per the value of the vehicle, and there is a specific down payment involved in these loans.
- A personal loan is sanctioned much faster usually within 24 hours while a bike loan takes 4 to 5 working days.
- Eligibility criteria for a personal loan are different from a bike loan. You can check bike loan eligibility, over here.
- Documentation required for personal loan includes the last six months salary slips, six months bank statements, address proof and identity proof.
- Documentation required for two wheeler loan includes identity proof, address proof, the last three months salary slips, the last three months bank statements and the last two years income tax returns.
Though both the loans meet the goal, you should take into account your financial goals and abilities before finalizing the loan.
Contact us and we can help you take the right decision!
Additional Read: How To Buy a Bike on EMI
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