Motorcycle loans are different from car loans, with different interest rates and repayment terms. When buying a new or used motorcycle, there are three different financing options: Manufacturer financing: Manufacturer financing is available from some motorcycle companies, such as Harley-Davidson or BMW.
Does a motorcycle count as an auto loan?
Like a car loan, the motorcycle acts as collateral for the loan. If you fail to pay your loan, the lender repossesses the bike.
What does your credit score have to be to get a loan for a motorcycle?
To secure a motorcycle loan, you will need a good credit score (670 or above), but the best rates will be reserved for those with very good to excellent credit (740 or above).
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.
Is motorcycle loan same as car loan? – Related Questions
What is the best way to finance a motorcycle?
One of the most cost-effective places to seek out a loan is through a local bank or credit union. The rates and terms available are almost always better than those you would receive from other sources. In addition to traditional banks and credit unions, there are online lending options.
What is a good down payment for 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.
What is the average term for a motorcycle loan?
Typically loan terms are offered at 36, 48 and 60 months.
How long should you finance a motorcycle for?
An ideal motorcycle loan should have a life of 24 to 36 months, and definitely no more than 60 months.
Which finance is best for bike loan?
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 |
Can I get a motorcycle loan with a 550 credit score?
Typically, lenders require a minimum credit score of around 620 to qualify for a motorcycle loan. Even so, we were able to find some that have even lower minimum requirements than that. Note that to get the lowest interest rates, you must have a credit score of at least 720 or higher.
How long should you finance a motorcycle for?
An ideal motorcycle loan should have a life of 24 to 36 months, and definitely no more than 60 months.
How old of a motorcycle can you finance?
Up to 10 model years in age. No commercial vehicles, off-road bikes, or ATVs.
Do you need a motorcycle license to buy a motorcycle?
Yes, if you buy the bike cash, you can do it without a licence. But of course, you shouldn’t… If you finance the bike, the bank would want proof of insurance on the bike before they give a release note to the seller. And the insurance company will not cover the motorcycle with an unlicensed rider.
What bike can you ride without a license?
Compulsory Basic Training (CBT)
If you passed a car test before February 2001 you can legally ride a 49cc moped with a passenger. You don’t need L-plates. You are restricted to 28mph.
Can I finance a bike without a license?
Yes you will need to have either a Full Cat A motorcycle licence or CBT pass to obtain bike finance. This is because you need to have passed your CBT (Compulsory Basic Training) to ride any bike over 50cc, so a CBT is now necessary for all 125cc riders. Above a 125cc you will need a Full Cat A bike license.
Can you get finance for a motorcycle without a license?
NO deposit Required. NO motorcycle learners or license required (subject to the approval of a personal loan at a higher interest rate). Finance from 6 months to 60 months. Instalments from as little as R490 per month.
Do banks finance motorcycles?
Some banks and credit unions offer loans specifically for motorcycles. Unlike an unsecured personal loan, these motorcycle loans are secured by the bike you’re purchasing. Because there’s less risk to the lender, they often come with lower interest rates and sometimes longer repayment terms.
What is needed to buy a bike?
Proof of Identity: Aadhar Card/Pan Card/Passport/Driving License/Voter ID and passport size photos. Proof of Address: Driving License/Passport/Voter ID/ Aadhar card/ Utility Bill/Bank statement. Income Proof: Income Tax Return (ITR), Last 3 months’ bank statements.