Looking for a Bike Loan? Know The Eligibility Criteria and Documents Required

If you are looking to purchase a bike but are short of funds then a bike loan can solve your problem. A bike loan is a type of personal loan specifically designed to finance the purchase of a motorcycle or other two-wheeler. It is important to understand the eligibility criteria and documents that will be required before applying for a bike loan. This article will cover everything you need to know before availing of a bike loan.

Eligibility Criteria for a Bike Loan

Each bank will have different eligibility criteria for their bike loans. However, there are some requirements that are uniform across all banks.

Here are the key eligibility criteria that you will likely need to meet.

  • Age: To be eligible for a bike loan, you’ll typically need to be at least 21 years old.
  • Income: Banks prefer granting a bike loan to borrowers who have a steady source of income, whether self-employed or salaried. A minimum income of Rs. 20,000 per month makes you eligible for a bike loan. 
  • Credit Score: A good credit score is important for any type of loan, and a bike loan is no exception. It defines your creditworthiness and makes you a reliable and trusted borrower. A CIBIL score of 700 and above is considered a healthy one that can help you easily avail of a bike loan.
  • Down Payment: You may be required to make a down payment on the bike depending upon your bank. The amount of the down payment will vary depending on the bank and the price of the bike.
  • Debt-to-income ratio: It refers to how much of your income goes into paying existing debts. A DTI ratio of less than 40% makes an eligible candidate for availing of a bike loan. 

Documents Required for a Bike Loan

In addition to meeting the eligibility criteria, you will also need to provide certain documents when applying for a bike loan. These documents differ as per your employment status. More or less, the documents required by salaried and self-employed are the same with some little changes in them. 

The documents required are mentioned below. 

Application Form: The application form can be filled out online or offline at your convenience. 

Identity proof: You’ll need to provide proof of your identity, such as a passport or driver’s license, Aadhar card, or voter’s ID card.

Address proof: You’ll also need to provide proof of your address, such as a utility bill or rental agreement.

Income proof: Your bank will want to see proof of your income, which can be in the form of salary slips of the past 6 months, Form 16 or ITR returns if you are a salaried professional. 

Employment proof: You may also be required to provide proof of your employment, such as a letter from your employer or a copy of your contract if you are a salaried professional.

Bike details: You’ll need to provide details about the bike you’re planning to buy, including the make, model, and year. This is important as it helps the bank to understand the road price of the bike which helps in its financing.

Existence/Proof of Business: In the case of self-employed professionals, the bank asks for proof of business to ensure the creditworthiness of the borrower. 

While applying for a bank loan, there are certain tips you should keep in mind. These include:

Check your credit score: Before applying for a bike loan, check your credit score to see where you stand. A credit score of 700 or above makes you eligible for one. 

Research thoroughly: Don’t settle for the first bike loan you come across. Compare rates and terms from different banks to find the best deal.

Calculate the total cost: When comparing bike loans from different banks, consider the total cost of the loan over the tenure including any fees and charges. This will give you a better idea of which loan is really the best deal.

Look for 100% financing: many banks offer 100% of their bike loans per the road price. Look out for a bank that offers the same as this will lessen the financial burden for you. 

Consider the loan tenure: The longer the tenure, the more interest you pay, and vice-versa. Due to the same, it is necessary to consider the loan tenure your bank has to offer. Every bank offers a different tenure but most banks offer tenure of up to 4 years. Keep your future finances and current financial situation in mind before finalizing the tenure. 

Look for processing fees: If you meet the two wheeler loan eligibility for instant disbursal, then your bank might charge a processing fee on the same which might be high. This increases the cost of your loan. Look carefully for these processing fees and make a decision accordingly.

Prepayment and Foreclosure Charges: You should check whether the bank allows prepayment or foreclosure of the loan and the charges associated with it.


Getting a bike loan can be a great way to finance the purchase of a new motorcycle or another two-wheeler. However, it’s important to understand the eligibility criteria and documents that will be required, as well as to shop around and compare rates from different lenders. By following these tips and doing your research, you can find the bike loan that’s right for you and get on the road in no time.