Considering the nature of Indian roads, a two wheeler is one of the best personal transportation vehicles that one can have. But what if you’re someone who wants to get their own two wheeler but lacks the funds for it? In such situations, a bike loan can come in quite handy. 

Apart from giving you access to funds, there are numerous other reasons why you should apply for a two wheeler loan to purchase your favourite vehicle. In this article, we’re going to take a look at 6 of the most important reasons. Let’s get started. 

  1. It Helps Reduce Your Financial Burden

Paying the entire value of a two wheeler out of your own pocket is not easy. And not all individuals may be in a position to do so as well. With a bike loan, however, you wouldn’t have to do that. 

All that you need to do is repay the loan in small, equated monthly instalments over a period of time. This reduces your financial burden significantly, allowing you to manage your finances in a much better manner.  

  1. It Allows You to Get the Two Wheeler of Your Choice 

Let’s say that you’ve set your eyes on a premium motorcycle with the latest features and technology. The price tag will most probably be out of your reach. What do you do in such a situation? Abandon your dreams of owning your favourite two wheeler? You won’t have to resort to such decisions with a two wheeler loan by your side.

By applying for a bike loan, you can get the two wheeler that you want without making any compromises whatsoever. And additionally, you won’t have to dip into your hard earned savings or stress your finances too. 

  1. It is Easy to Avail 

Contrary to popular opinion, getting your hands on a bike loan has become a lot easier of late. Almost all lenders now allow you to apply for one online from the comfort of your own home. That’s not all. 

The two wheeler loan eligibility criteria also tends to be quite relaxed too. As a matter of fact, you can apply for a two wheeler loan and get it approved within a matter of a few days instead of weeks. 

  1. It Comes with Tax Benefits 

Did you know that a two-wheeler loan offers tax benefits? Yes, you read that right. Section 80C of the Income Tax Act, 1961 allows you to deduct the interest component of the bike loan if you satisfy the following conditions. 

  • The vehicle is used for business purposes. 
  • You are a self-employed individual, business owner, or a professional. 
  • The vehicle is registered in your name. 

If you satisfy these criteria, you can deduct the interest component of the loan from your total taxable income up to the tune of ₹1.5 Lakhs in a financial year. This way, you can significantly reduce your tax liability. 

  1. It Comes with Lower Interest Rates

The interest rates on two wheeler loans are usually far lower than other kinds of loans like personal loans. One of the many reasons for this has to do with the fact that a two wheeler loan is secured in nature. This allows lenders to offer lower interest rates due to the lower amount of risk involved.   

Also, if you possess a good enough credit score, you may be able to land an even better deal as well. That said, here’s a tip. When looking to apply for a bike loan, make sure to compare offers from different lenders. This way, you can easily ascertain the one that offers the lowest rate of interest. 

  1. It Builds Your Credit History 

All loans and credit facilities, including two wheeler loans, are recorded and reported to Credit Information Companies like CIBIL. These companies then assign credit scores to individuals within a range of 300 to 900. 

A two wheeler loan, when repaid on time within the stipulated due date, builds good credit history and boosts your score as well. This can make it easier for you to avail loans and other credit facilities in the future. 


And there you have it. Top 6 reasons why you should apply for a bike loan. That said, before you go ahead with your application, always make sure to check the two wheeler loan eligibility criteria first. Ascertaining whether you qualify for the loan can help reduce chances of rejection.