3 Major Factors That Affect Your Bike Loan EMI


Bikes are an accessible mode of transportation for people. Especially in India, where roads are packed, and commuting becomes challenging, it is easy to travel on a bike. Moreover, owning a bike also gives you a sense of freedom and independence.

However, there is a catch to all this happiness. You know that bikes do not come cheap; they are expensive. The most affordable bike is around 6000 rupees, and the most expensive motorcycle is ten lakhs rupees. But bikes are one of the most sold goods in India, and prices keep fluctuating day by day according to market demands and supply rates.

What is a Bike Loan?

A bike loan is an agreement between you and a loan institution, where you borrow money to finance the purchase of a bicycle. Most loans are secured by the bike itself, meaning that you fail to make payments or sell the bike. It is done before it is due, then your lender can repossess it.

Two-wheelers are a natural spot of attraction for people in India. In 2017 a total of 7.5 million two-wheelers were sold in India, accounting for 31% of total vehicles sales. The two-wheelers market is growing from strength to strength, with sales increasing ever since 2015.

Factors that Affect a Bike Loan in India         

As mentioned already, bike loans are pretty standard in India. It allows the borrower the money which is required to purchase the bike. While choosing an EMI option, it is best to take the help of a bike loan EMI calculator. It not only saves time but makes sure that the borrower issues the loan amount right on time.

With low-interest rates to easy and flexible EMI options, some factors affect the purchase of bike loans. Let us check what they are:

  1.  Credit Score

Your credit score is one of the most important numbers you will ever know. Understanding what it means can make a huge difference in your bike loan’s journey. By better understanding what it is and how it is calculated, you will make smarter financial decisions like getting a bike loan.

Your credit score is a 3-digit number that tells your lenders how creditworthy you are. It is calculated based on information in your credit report when it is pulled, which usually occurs when you are applying for a loan. 

A higher score means you’re more likely to pay back what you owe and be less of a risk to lenders. On the other hand, a lower score can make it difficult for you to land an affordable car loan and get the best interest rates on your credit cards and home equity line of credit.

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  1. Loan Amount

The second factor that affects the interest rate is the total loan amount. If you have applied for around 85% on the current road price of your bike loan, then there are flexible rates. Some institutions extend the loan to about 36 months for EMI. It is advisable to use a bike EMI properly to calculate the right amount. If the loan amount is higher, then there is an increased risk attested to it. Thus the lender can charge you a higher rate of interest to cover all the losses and justify the risk.

  1. Loan Tenure

Since bikes are often one of the most desired purchases, it is essential to consider what terms will work best for you. When looking at bike financing, given the state of the economy, there are much easier advancement options for borrowers.  The loan tenure depends on the amount of loan availed. Depending on the salary of a person and their repayment capacity, the term is set. For a high salaried person, the loan tenure can be up to a lesser amount. The bike loan EMI calculator determines how much you can pay per month once you have a two-wheeler. 


It is essential to choose a service where loan processing is an easy task. The documentation handling is hassle-free, and there is quick loan disbursal. There are even working professionals who go through the process quickly without any disruption. Thus, there is the option for instant digital approval, making it easier for the borrower to get the loan amount.