Why You Should Avoid Buying a Two-Wheeler On a Credit Card?

Home to an extensive market of two-wheelers- motorbikes, scooters and motorcycles have become the fuel that drives India’s population to their destination. Highly admired by the youth, the middle-aged and the working-class people, two-wheelers guarantee a more pocket-friendly and quick mode of transportation.

Indian roads are the right fit for two-wheelers. Whether it’s the typical traffic congestion scenario across the states or the massive potholes, these roads make everyone own at least one motorcycle or a scooter.

Even though two-wheelers cost much lower than cars, they are still a considerable one-time investment to make, and it is a fact worth considering that people of all income groups alike prefer the bikes.

Therefore, it is common for people to opt for a finance option while buying their two-wheeler. If you are also planning to buy a two-wheeler with the help of a loan anytime soon, the following article will surely help you decide your financing option.


Why Prefer Two-Wheeler Loan Over Credit Card Finance?


People often ask why avoid buying a two-wheeler on a credit card, and you are at just the right place to know a precise answer to the question. Given below are the parameters on which two-wheeler loans look preferable to credit cards:


1. The Repayment Tenure

We opt for a bike loan, mainly because we don’t want to suddenly invest a large amount of money due to its unavailability. Taking a two-wheeler loan from an NBFC gives you an extensive tenure of five years to pay your loan back. In contrast to this, the credit card dues need to be paid back within just two years.

Hence, repayment tenure is more than double if you opt for a two-wheeler loan and not a credit card.


2. Interest Rates

Another apparent reason why avoid buying a two-wheeler on a credit card while opting for longer tenures is the difference in the interest rates of a credit card and a two-wheeler loan.

For longer tenure the credit card interest rates can rise, which is not the case in case of a bike loan.


3. Cost Inclusion

It is not a hidden fact that a vehicle’s on-road price is way different from its ex-showroom price. One good advantage of two-wheeler loans over credit cards is that the finance account includes registration costs, road tax, accessory costs, and insurance amount.

On the other hand, your credit card finance is only available for the vehicle you buy, which roughly makes up to around 80% of the two-wheeler’s on-road price.


4. Make Use Of Good Credit Score

If you have a good credit score, you automatically tick all the eligibility boxes for a two-wheeler loan, and hence, you don’t have to worry about its approval. A two-wheeler loan from an NBFC hardly takes a day to get a green flag, and the process is entirely paperless and hassle-free.


5. Credit Cards Are Unsuitable For Large Amounts

It depends on your preference whether you are willing to buy a 100 cc scooter or a 1200 cc sports bike. In the latter case, you may not want to opt for a credit card loan as you get a better deal with a two-wheeler loan.




Owning a vehicle is a dream for many people because they help eliminate the dependency on public transports, and they also provide a sense of ownership. As for a two-wheeler, it comes in handy for regular commutation and joyriding as well.

If you plan to buy a two-wheeler on your credit card, you should consider the parameters mentioned in this article before finalising your decision. For positive outcomes, it is suggested to finance your two-wheeler through a bike loan.

Apply for Loan Calculate Your EMI