Reasons why you should avoid buying a two-wheeler with a personal loan | Kiran of Udaipur | Latest news from Udaipur

Two-wheelers have always been the preferred choice of Indians for commuting to and from work and traveling short distances. It’s faster, convenient, affordable and, of course, an important way to escape traffic. As the world turns to electric vehicles, the increase in demand for two-wheelers is unparalleled. With less maintenance and no fuel costs, owning a two-wheeler and getting around has never been so economical before.

The cost of two-wheelers ranges between Rs. 50,000 to Rs. 1,00,000 for a standard vehicle. Suppose you opt for high-end versions or sports bikes; the price itself increases. However, despite the available two-wheeler loans, people resort to personal loans to finance their two-wheelers. This only burdens their finances. Below are the top reasons to avoid personal loans to finance your two-wheeler and opt for an affordable two-wheeler loan instead.

Reasons to Avoid Personal Loans for Two-Wheeled Finance

Below are reasons to avoid personal loans as a two-wheeled financing option:

  • Higher interest rates: Personal loans have a higher interest rate than two-wheeled loans. While the two-wheeler loans the interest rate starts at just 10% to 11% per annum, personal loans can start from 12% to 13%. Paying a higher interest rate may not be wise, especially when a more affordable alternative is available.
  • CIBIL score: As personal loans are unsecured, banks rely on CIBIL scores to assess creditworthiness and review the borrower’s credit history. Therefore, opting for a personal loan may require you to have an excellent CIBIL score; otherwise, the risk of loan refusal increases.
  • Eligibility: The personal loan also requires income stability apart from work experience requirements. These requirements may be absent or relaxed in car loan requirements, making it easier to get a car loan than a personal loan.
  • Amount of the loan: The amount of personal loans you can benefit from depends on your income and your profile. This may allow you to only obtain partial financing for your vehicle. Ultimately, you will have to set aside a considerable portion of the down payment from your pocket, which will put a strain on your finances. While in the case of a two-wheeler loan, the lender can grant up to 95% of the cost of the vehicle as a loan. For certain vehicles, you can obtain a loan of up to 100% of the cost of the vehicle.

Two-wheeler loan eligibility

Here are the eligibility criteria for two-wheeler credits:

  • Age: The applicant must be between the ages of 21 and 60.
  • Residence: The applicant must have residential stability for at least one year.
  • Job:The candidate must have had a stable job for at least one year.

If you opt for premium vehicles, there may be a slight variation in eligibility requirements.


Two-wheeler loans have been instrumental in making two-wheeler purchases easier, and there seems to be no reason to opt for personal loans to buy your two-wheeler. If you are looking to finance the bike of your dreams, opting for a bike loan will always be advantageous compared to personal loans. If you want to compare and calculate the benefits of money saved, you can use a Bike Loan EMI Calculator. Enter the loan amount, bike loan interest rate, and loan term, and you’ll get the exact EMI amount as well as the total amount you’ll end up paying in both options. Make a wise decision when buying the bike of your dreams with the two-wheeler loan!