Top 5 Reasons Why You Should Apply for A Two Wheeler Loan

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Bike prices in India are reaching new heights.

Hence, if one wants to buy a bike, applying for a Two Wheeler loan is the way of the wise.

Why buying a bike through a loan is better than buying it with cash?

Well, a motorcycle loan offers many benefits to the borrower.

Some of them are enunciated in the sections below – 

One can buy the bike they want when they want!

The prices of motorcycles sold in India are not what they used to be. They have been hiked several times in the last few years. The situation has come to a point where even entry-level commuter bikes are costly. The reason behind the incessant hikes in bike prices is that all bikes these days come with modern electronics. Furthermore, the production costs of motorcycles are increasing due to the exponential increase in the prices of raw materials. 

Hence, one cannot even think about buying a bike with cash. Furthermore, buying a bike with cash means that a person would have limited choices as they have a limited budget.

Furthermore, when one has plans to buy a bike with cash, they would have to wait for a long time. This waiting period is used by the person to arrange finances.

With a bike loan, budget constraints and time limitations are thrown out of the proverbial equation. In simple words, with a bike loan, one can buy a bike they want, when they want!

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One can keep their savings and FD intact

It is no surprise that when one decided to buy a bike with cash, they would have to break out their FD. Or they might even have to empty their savings as well as emergency funds. Breaking out one’s FD, emergency funds or savings leaves the person vulnerable. India is yet to become a cashless economy. Furthermore, the cost of living in India is increasing with each passing year. This means that with no cash reserves to cover financial emergencies, one is putting them at risk.

Applying for a bike loan will provide the borrower with a financial cushion. At the same time, one would not need to deplete their emergency cash reserves.

Motorcycle loans entail low-interest rates

Motorcycle loans these days are affordable. Back in the day, bike loans entailed hefty interest rates and non-negotiable terms. Furthermore, borrowers were even penalized for clearing their debt before the loan tenure is over.

Not anymore. These days, one can use a bike EMI calculator and choose a custom principal + tenure combination. Using the calculator enables borrowers to keep interest rates and EMIs affordable. Furthermore, bike loans these days, come with custom repayment clauses. Hence, clearing off debt before its tenure is over does not entail penalties!

Borrowers can boost their credit score and build their credit history

As bike loans are secured, borrowers can use the debt to boost their credit score and build their credit history.

Every EMI paid by the borrower boots their credit score. At the same time, the credit history of the borrower strengthens.

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A strong credit score and a spotless credit history can help the borrower in the long run. 


Life is unpredictable. It means that one might need to apply for a hefty loan in the future to cover a financial emergency. With a strong credit score and spotless credit history, the borrower will be offered low-interest rates and EMIs. If the credit score and credit history of the borrower are poor, they might have to endure hefty interest rates. Chances are also high that the lender refuses to grant them a loan. And even if they did, it would entail steep EMIs and interest rates!

The process of applying for a bike loan is easy

All traditional, as well as non-traditional lenders these days, offer online bike loans! One can also file the necessary documents from their home. 

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