You can finance a motorcycle similarly to financing a car: check your credit score, decide on a budget, choose your ride and apply to a few lenders of your choice. With an array of offers, pick the motorcycle loan offer that’s best for you, sign on the dotted line and ride off into the sunset.
How hard is it to finance a motorcycle?
There’s no minimum credit score required for a motorcycle loan, but the better your score, the easier it may be to qualify for better rates and terms. In general, a higher credit score will lead to a lower interest rate on your loan and, therefore, less spent on interest charges over the life of the loan.
Are motorcycle loans cheaper than car loans?
Motorcycle loans tend to have lower limits than car loans. The average motorcycle is much less expensive than the average car. As a result, the average motorcycle loan is much smaller than the average car loan. Whenever the loan is smaller, it is likely the interest rate on the loan will be lower.
Are interest rates higher on motorcycles?
Key Factors Impacting Motorcycle Loan Rates
They are well aware that motorcycle riders are at a greater risk of not repaying due to injury or death, and potential damage to the vehicle reduces the value of the bike as collateral. Consequently, motorcycles carry higher interest rates than traditional auto loans.
Can you finance motorcycle like a car? – Related Questions
What is a good downpayment on a motorcycle?
A good rule of thumb is to put a 10-20 percent down payment on a motorcycle. That gets you in a good, equitable position. If you have bad credit, putting more down can make you a better risk for lenders. It usually depends on credit criteria, but more people put 10 percent down than do double that.
Is it worth getting a bike on finance?
Since their cash at hand is limited and they cannot increase their budget, they cannot buy an expensive bike. A bike loan can increase a person’s options as most lenders can cover up to 90% of a bike’s MSRP. Sure, the EMIs and the rate of interest will be high but one can buy a bike they want. It is as simple as that!
Why are motorcycle interest rates so high?
Motorcycles require more repairs and the motorcycle depreciation rate is higher than a car depreciation rate. Motorcycle crash rates are also higher. All of these factors add up and make for a higher risk loan, therefore lenders charge a higher APR.
Why are bike loan rates so high?
The higher the cost of your bike, the more the loan you will need. Thus, this also increased the interest rate, as the financial institution is taking a bigger risk in awarding you with a loan of a higher amount as it increases your chances of defaulting.
What is the highest APR on a motorcycle loan?
Rates start as low as 5.99% APR as of October 2022 but excellent credit and auto-pay is required to qualify. Otherwise, rate ranges are 0.50% higher than the APRs shown on its website, which can end up as high as 14.14% without auto-pay.
What is interest rate on bike?
The following table helps you compare the interest rates and processing fees charged by lenders in India along with their respective tenures. 17.20% to 18.95% p.a.
What is the minimum downpayment for a bike?
Minimum Down Payment Required for a Bike Loan
It ranges from 15-30%* of the two-wheeler value. Down payment solely depends on the cost of the bike and your repayment capacity. It is advisable to pay some amount as down payment for availing lower EMIs on bike loan.
Which finance is best for bike?
Best Two Wheeler Loan Providers in India Based on Interest Rates
| Bank/NBFC |
Interest Rate Per Annum |
| Bajaj Auto Finance |
11.60% onwards |
| Karnataka Bank |
12.45% onwards |
| HDFC Bank |
14.50% onwards |
| State Bank of India (SBI) |
16.25% onwards |
Which bank is good for bike loan?
State-run Bank of India is the cheapest lender when it comes to two-wheeler loans, offering an interest rate of 6.85 percent, comparable to home loans. At this interest rate, the EMI for a Rs 1-lakh loan with a three-year repayment period will amount to Rs 3,081.
What credit score is needed for a bike loan?
What is a good CIBIL score for bike? A CIBIL credit score of 750 or more can fetch you low interest rates on your two wheeler loan. The processing charge for the two wheeler loan may also lower down if you have a good CIBIL credit score.
Can I get bike loan without income proof?
Can I get a bike loan without income proof? Yes, you can acquire a two-wheeler loan without income proof if you have other documents in place and are applying with a co-applicant.
What is the minimum salary for two-wheeler loan?
Individuals: Salaried or self-employed. Age between 21 and 65 years. Minimum monthly income of Rs 10,000.
How do I qualify for a bike loan?
The minimum age limit for procuring a bike loan is 21 years. The maximum age limit to qualify for bike loan eligibility is 58 to 65 years or retirement age. Your employment status should either be salaried or employed, with a minimum annual income of Rs 50,000 per year.
How much vehicle loan can I get on 40000 salary?
It is advised to customers that they restrict their car loans to not more than 20 percent of their monthly income. For example, if you make Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000. But the criteria for getting a loan also depends on the creditworthiness of the customer.
How much loan can I get on 60000 salary?
However, if you are deliberating on the loan amount with how much loan I can get on a 60,000 salary, the approved amount should be close to Rs. 16.20 lakhs.
Multiplier Method.
| Salary |
Expected Personal Loan Amount |
| Rs. 40,000 |
Rs. 10.80 lakhs |
| Rs. 50,000 |
Rs. 13.50 lakhs |
| Rs. 60,000 |
Rs. 16.20 lakhs |
How much loan can I get on $70000 salary?
$70,000 salary
A $70,000 annual gross income with a mortgage at 2.10% p.a. equates to a loan amount of up to $568,000. With a 10% deposit contribution, the maximum affordable property price would be $624,800, or with a 20% deposit $681,600.