What is the best way to finance a two-wheeler in India?

Posted on Thursday, August 10th, 2023 | By IndusInd Bank

When buying a two-wheeler in India, it is important to learn all about two-wheeler loans and then choose the right financing option. IndusInd Bank provides attractive interest rates, flexible repayment options, quick processing, and wide-ranging loan amounts.

Cost-effective and convenient, a two-wheeler remains the preferred mode of transport for millions of Indian families across the country. While not all bikes and two-wheelers are steeply priced, many people prefer to take out a two-wheeler loan for various reasons. When it comes to funding your two-wheeler purchase in India, it’s important to evaluate your financing options. With numerous choices available, understanding the features and benefits of each can help you make an informed decision. In this blog post, we will explore the best way to finance your two-wheeler purchase, focusing on the advantages of a bike loanfrom IndusInd Bank.

What is a Two-Wheeler Loan?

A two-wheeler loan is a financing option that allows individuals to purchase a bike and repay the amount in easy instalments over a specific predetermined tenure. It is a secured loan wherein the two-wheeler itself serves as the collateral. These loans are provided by several leading banks and non-banking financial companies (NBFCs).

4 Factors to Consider While Choosing a Two Wheeler Loan

Given the numerous two-wheeler loan options available, one must carefully consider several factors while choosing a bike loan. Here are four of the most important factors to take into account:-

1. Interest Rate: Compare bike loan interest rates to find a loan that suits your repayment abilities.
2. Tenure: Choose a repayment tenure and pocket-friendly EMI plan that will fit your budget and not put a strain on your finances.
3. Relationship with Bank: Explore loan options from your current banking partner for favourable terms and preferential rates.
4. Eligibility Criteria: Evaluate lenders’ eligibility criteria based on age, income, employment, and credit history to find a suitable match.

Key features of two-wheeler loans:-

• Competitive Interest Rates: Bike loan interest rates are competitive due to an array of options, but may vary based on factors such as credit score, age, income, and relationship with the issuing bank or financial institution.
• Secured Loan: The two-wheeler serves as collateral, making it a secured loan option.
• Flexible Loan Tenure: Loan durations typically range from 1 to 5 years, allowing borrowers to choose a tenure based on their repayment ability.
• Convenient Application: Existing bank account holders can easily apply for a loan at the same bank.
• Showroom Tie-ups: Many bike showrooms have partnerships with banks, enabling customers to apply for a loan during the purchase process.
• Minimal Documentation: The application process typically involves minimal documentation, ensuring a simple and hassle-free experience for applicants.

Why Choose IndusInd Bank’s Two-wheeler Loan Solutions

A two-wheeler loan from IndusInd Bank is a great way to help you realise your dream of owning a bike. Here’s what makes IndusInd Bank the ideal choice for a two-wheeler loan:

• Attractive Interest Rates: IndusInd offers some of the most competitive bike loan interest rates across India.
• Flexible Repayment Tenures: IndusInd Bank gives you the freedom and flexibility to choose from tenures ranging between 12-36 month for regular two-wheelers and up to 60 months for high-end, fancier bike models.
• Quick Loan Processing: The processing time is as low as 4 hours. Additionally, IndusInd Bank offers doorstep documentation services for your two-wheeler loans.
• High Loan Amounts: Get up to 95% finance on the on-road price of your two-wheeler with loans starting from as little as INR 15, 000, to as much as INR 25 lakhs.

Whether you’re self-employed or salaried, IndusInd Bank makes it easy for you to get the bike of your choice with minimal eligibility criteria. You could even use IndusInd Bank’s Two Wheeler EMI Calculator to calculate and select a payment plan that suits you. All those above 21 years of age and with a stable source of income (above the threshold of INR 10, 000 per month for salaried individuals) can fill out the application form online.

So if you are looking to buy your dream vehicle, opt for IndusInd Bank’s two-wheeler loan for an easy, hassle-free experience. Apply for a bike loan today! 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.