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Things To Know Before Buying Bike On Emi

You may have made up your mind about buying a 2500 CC bike, but you might not have enough to manage your finances.  In such cases, buying a bike on EMI is the best option to manage your finances without redeeming your savings or investments. Most Indian bike owners finance their bikes through loans as it is the most affordable option.

It enables you to secure a loan amount based on your needs. For instance, you can even get up to 100% of the vehicle’s value as a loan. But, you will have to convince your lender that you can repay the loan amount without any defaults. With affordable bike loan interest rates and flexible loan terms, you can easily make on-time repayments of your loan.

Here are the top things you must know before getting a bike on EMI:

Loan amount

If you want to buy a bike on EMI, it is crucial to consider the loan amount you are applying for. As mentioned earlier, you can get up to 100% of your bike’s market value as a loan. But, that does not mean that you should opt for a higher loan. You must assess your needs in advance because choosing a higher loan amount always attracts a higher bike loan interest rate.

Bike loan interest rate

Your bike interest rate depends on factors such as your age, income, credit score, etc. When applying for a bike on Emi, make sure you have a stable income and a healthy credit score. The higher your income and credit score, the lower your interest rate will be. Also, not all lenders offer the same interest rate. You will need to compare rates to choose one that best serves your needs.

Credit score

After your income, the credit score is the second most crucial factor in your bike loan application. When you buy a bike on EMI, the lender will check your credit score to determine your repayment capacity. It is a three-digit number that contains information about your credit history, credit behavior, etc. It generally ranges between 300 to 900. The minimum CIBIL score requirement to get a bike loan is 750. So, before applying for a bike loan, make sure to check your credit score and ensure to meet the lender’s requirements.

Type of bike loan

While applying for a bike loan, you will have two options to choose from. You can get a secured or unsecured loan. A secured loan allows you to pledge an asset of considerable value as collateral. It is generally the bike itself. An unsecured loan does not have such requirements. However, unsecured loans come with higher bike loan interest rates. If you can pledge asset collateral, you can get the best interest rate there is.

Loan tenure

When you buy a bike on EMI, you get to enjoy a repayment tenure that ranges between 12 to 60 months, ensuring the flexibility to repay your loan amount within the stipulated EMIs. However, it is worth noting that a longer loan tenure may decrease your EMIs, but you will have to pay more interest in the long run. So, if you have the budget, choose a shorter loan tenure to reduce the financial burden.

Eligibility Criteria

The best part about a bike loan is that it is getting secure. The eligibility norms are relaxed, due to which almost anyone with a stable income and repayment capacity can apply for a loan.

Here are the criteria to apply for a bike loan:

  • You must be a citizen of India currently living in India
  • You must be a salaried employee of an organization, or you must be a self-employed professional.
  • The minimum age requirement is 18 years at the time of application.
  • The maximum age requirement is 65 years at the end of the loan tenure.
  • Salaried individual: You must earn a minimum net income as per your lender policy.
  • Self-employed: You must show a minimum net profit as per your lender’s policy.


While applying for a bike loan, you will need to submit certain documents along with your application. Even though the documents required to apply for a bike loan vary across lenders, they are almost the same.

Here are the documents required to get a bike loan:

  • ID Proof: Aadhaar Card, Driving License, Passport, Voter ID Card, or PAN Card.
  • Address proof: Aadhaar Card, Voters ID Card, Passport, or Utility Bill.
  • Income Proof: salary slips, bank statements, ITR, or Form 16
  • Cancelled cheque
  • A passport-size photo

Processing fees

To buy a bike on EMI, you will have to pay a processing fee to get a loan. The processing fee differs from lender to lender, but it generally ranges between 1% to 3# of the total loan amount. If you wish to secure lower processing fees, the best time to apply for a bike loan is during festive seasons, as most lenders offer discounts.

These are the factors that determine your bike loan. Keep these things in mind and decide individual factors according to your budget and needs.

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