Reading the fine print before choosing a two wheeler loan is critical. If you are in the habit of making a monthly budget, it should be easy to see how it could affect your other priorities. If not, you can use a bike loan EMI calculator to determine if it is affordable. All you need to do is enter the loan amount and tenure. Make sure you have enough money set aside for the down payment and processing fees. Apply for bike loan online to get the most competitive offers.

Here is a checklist you can use to zero in on the best possible 2 wheeler loan for your needs:

Two wheeler loan eligibility criteria:

First, you must be a resident of India to apply for a two wheeler loan. Although students too can apply – as long as they have a guarantor – the minimum age limit is 21 years while the maximum is 65. Both salaried employees, as well as entrepreneurs, are eligible to apply as well. Corporate organizations can also avail two-wheeler loans. 

However, every institution follows its own rules when it comes to the minimum loan amount and tenure. Depending on the amount you need to borrow and the loan provider you approach, the tenure could be anywhere between 12-48 months. It’s worth noting that longer-term tenures of up to 60 months are also available for select superbike models. 


For your bike loan application to be considered, lenders need to verify your identity and domicile, i.e., residential status. You will be required to furnish copies of government-issued documents such as driver’s license, Aadhar Card, PAN Card, Voter ID Card, in addition to passport-sized photographs. To prove your income, you will need to submit your most recent payslips, Form 16 and Income Tax Returns.

Terms and Conditions:

Terms and Conditions for Two Wheeler Loan

While prepaying a 2 wheeler loan by adding an extra 5% to your EMIs each year is a good strategy; however, there may be a downside to it – prepayment charges. Check with your provider if any charges are applicable if you repay the loan ahead of schedule. 

If yes, negotiate a waiver or choose a different provider. Don’t forget to ask for a breakdown of the processing charges. Also, loans are only available on standard bike models. The cost of any customization will have to be borne by you.

Interest rates:

Your EMIs will vary depending on whether you opt for a fixed or floating rate of interest. Other factors that influence two wheeler loan interest rate calculations are your CIBIL score, the bike model you’re considering and the duration of the credit. 

If you opt for a loan without collateral, the interest rate is likely to be higher. Additionally, you may have to pay more if you are self-employed. Check the overall credentials of the provider; do not base your decision on the lowest two wheeler loan interest rate only.

Finally, check for hidden charges or bundled insurance premiums, which might add to your monthly outgo.

Choose Tata Capital for your long-term bike loan requirements and drive home your dream bike today!

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