A two-wheeler loan is a personal loan you can use to purchase a new or used two-wheeler. Individuals can purchase the vehicle they need without paying for it outright by taking out a two-wheeler loan. This allows for more flexibility in managing personal finances, as the cost of the vehicle can be spread out over a longer period. 

A two-wheeler loan can be applied for by anyone who has been working for at least one year at their current job, earns a decent income, and has a good credit history with no faulty payments. This article will help you know everything about two-wheeler loans to make a wise decision. 

Two Wheeler Loan Eligibility Criteria

To check for a two-wheeler loan eligibility, you must meet specific criteria. These include

  • Age – You must be at least 18 to apply for the loan. However, the minimum age requirement may vary, so make sure that you check with your preferred financial bodies before applying.
  • Income – One of the most important eligibility criteria when applying for a loan is income. It will help determine how much money you can borrow and what interest rate they will charge on your loan amount.
  • Employment status – To qualify for this, your employer must be an Indian government institution or public sector unit. 

Documents Needed

You will need to submit the following documents.

  • Proof of identity (driving license, passport)
  • Address proof (electricity bill, government documents)
  • Income proof (last 3 months’ salary slips or Form 16)

How to Check Your Two wheeler Loan Eligibility

  • Online: You can check for a two-wheeler loan eligibility by visiting a lender’s website or using their mobile application. 
  • Through The Lender: This is the best option if you want a quick way to check whether you qualify for the loan. All that is required is filling up an online application form with basic details such as name, age, and address. After submitting the same, one should receive an instant response about whether they are eligible to avail of such a facility within minutes of applying online.

How to Apply for a Two-Wheeler Loan

You can apply for a two-wheeler loan online or through a lender. You can apply directly to the lender’s branch if you don’t want to do it online. You may be asked to pay the initial processing fee for the loan.

Tips for Applying for a Two-Wheeler Loan

  • Check the interest rate. The interest rate is among the most important factors when applying for a two-wheeler loan
  • Compare lenders’ offers. If you’re looking at multiple offers from different lenders, it’s worth comparing them.
  • Read all documents carefully before signing anything! It is the most obvious thing. Also, keep it ready for yourself. It will save a lot of time throughout the application procedure.
  • You must check the terms and conditions of the loan application.
  • The most important thing in applying for the loan process is that you borrow only what you can afford to pay. It will decrease your chances of defaulting on the loan.

Features of Two-Wheeler Loan

  1. Loan Amount: The loan amount for a two-wheeler loan ranges from a few thousand rupees to several lakhs, depending on the lender and the borrower’s creditworthiness.
  2. Repayment Period: The repayment period for a two-wheeler loan can vary from one lender to another but is usually longer than other types of personal loans. Mostly, it ranges from 12 to 60 months, with some lenders offering even longer repayment periods.
  3. Interest Rates: The interest rates for two-wheeler loans are generally lower than other loans, such as personal loans or credit cards. 
  4. Processing Time: Two-wheeler loans are usually processed quickly and efficiently. Some lenders also offer instant approvals and disbursements.
  5. Prepayment and Foreclosure: Some lenders allow borrowers to prepay the loan amount or foreclose the loan before the end of the repayment period without incurring any penalties or charges. Look for this feature, as it will reduce your cost of borrowing. 


A two-wheeler loan can be a terrific choice for those wishing to buy a new or used two-wheeler without paying for it upfront. Two-wheeler loans can help borrowers with their monthly payments by offering cheaper interest rates and longer repayment terms. It can also be a practical and appealing choice for borrowers due to the rapid and effective processing time, flexibility to prepay or foreclose the loan, and others.