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The maximum amount of loan that you can avail to buy a bike will vary from lender to lender. Most banks offer financing up to 90% of the on-road price of the bike but there are some banks such as HDFC Bank, ICICI Bank, etc., that offers financing for up to 100% of the bike’s on-road price.

Yes, you can prepay the entire bike loan and save on vital interest payments in the future. However, most banks will allow the pre-payment option after you have chalked off 6 months on your loan tenure. Plus, you will be expected to pay a small fee as pre-payment penalty that will be dependent on the leftover loan amount.

Unless otherwise specified, almost all small to medium sized bike, Commercial Vehicle Loan, Sports Utility Vehicles (SUV), and Multi Utility Vehicles (MUV) come under the purview of car loans available in India. However, as mentioned, refer to the loan brochure for exceptions to this rule.

Almost all bike loan products available in India are secured loans, with the procured vehicle itself acting as the customary security. Most lenders in India will not insist upon any guarantors; however, if your annual income does not match up to the expected requirement, then you may be expected to sign-up a co-applicant and/or guarantor.

Repayment tenures usually range from 12 months to 84 months (1-7 years).

Just like with most loans, a high credit score above 750 is ideal. But you can still apply for a loan if your credit score is above 600. Remember, if your score is too low, your application may be rejected.

Yes. Some banks will offer lower interest rates to applicants with high credit scores. Likewise, borrowers with low credit scores will have to bear higher interest rates.

When you apply for a bike loan, lenders will look for a credit score of at least 750. Below this score, lenders may be reluctant to lend to you as it indicates your low repayment capacity. Some banks may offer you a bike loan despite your low credit score but they may charge a higher interest rate.

Before you apply for any bike loan, ensure that you explore all the options available. Once you explore, you will get an idea about the benefits offered by various lenders on their bike loans. Compare the benefits offered and pick a lender that fits your requirements. Whether it is a bank or a bike dealership, pick the one that offers better interest rates.

One of the most important factors that lenders consider before offering you a bike loan is your credit score. As stated above, a credit score of above 750 can fetch you lower interest rates and other benefits. The other factors that lenders look for when you apply for a bike loan are your employment status, residence and job stability, income, debt-to-income ratio, etc.

The amount of EMI (equated monthly instalments) that you will be paying towards your bike loan will depend on the interest rate, loan amount, and the repayment tenure you choose. You can calculate the EMI by using the EMI Calculator tool available on the BankBazaar website. For example, let us suppose that you avail a bike loan of Rs.1 lakh at an interest rate of 12% for a tenure of 5 years. Using the tool, we calculated the EMI and found it to be Rs.2,224.

Making a higher down payment will mean that you will need to avail a lower loan amount to buy a bike. When you avail a lower loan amount, there are chances that banks or lenders may offer you a bike loan at lower interest rates. This is simply because if the loan amount is lower, the repayment will be quicker. So, though there is no hard and fast rule to how much down payment you should make, a higher down payment will ensure that your debt liability is lesser.

If your credit score is above 750, you can negotiate with the banks to offer you a bike loan at a lower interest rate. Many lenders will let you negotiate on the interest rates since your high credit score is an indication of your high repayment capacity. Some lenders may also offer you a waiver on the processing fee if you have a good credit score.