India loves two-wheelers for the convenience they offer in daily commuting and steering through the traffic. This is because of their popularity that India sold over 1.96 crore two-wheelers in FY25. Over 75% of the bikes in India are bought with a credit, which shows that Personal Loans for bikes are as popular.
A Personal Loan for two-wheelers offers you the freedom to buy your dream bike without paying up front. In this blog, we will understand why you must opt for a Personal Loan for two-wheelers and its benefits. Read on!
What is a Personal Loan for Bikes/Two-wheelers?

A Personal Loan for two-wheelers is an unsecured loan that allows you to purchase a bike or scooter without pledging any security. Unlike traditional bike loans, a Personal Loan for bikes offers 100% financing without any hypothecation involved.
The bank or non-banking financial company (NBFCs) disburses the money into your bank account. A Personal Loan then gives you complete freedom and flexibility to buy a bike or a brand model you love. You can also use it to cover the associated expenses, such as insurance or accessories.
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Reasons to Purchase a Two-wheeler with a Personal Loan
A Personal Loan for bikes offers several benefits over a bike loan. Here are all the benefits of a Personal Loan for two-wheelers that make it ideal for buying a bike with it:
1. 100% Financing
Bike loans usually
offer a loan-to-value (LTV) ratio of 70-90%. This means that if you
are buying a bike of ₹2 lakh and lenders have offered you an LTV of
80%, you need to pay ₹40,000 out of your own pocket. Personal Loan
for bikes, on the other hand, offers 100% financing to finance the
full on-road cost of your bike, including GST, registration and insurance.
2. No Down Payment Required
A
two-wheeler loan always demands a down payment. As a Personal Loan
for a two-wheeler offers 100% financing, you don't need to pay any
amount out of your pocket to buy a bike. A Personal Loan provides funds to cover
everything from the ex-showroom price to insurance and GST.
3. No Collateral Needed
When you buy a
bike with a two-wheeler loan, your two-wheeler serves as collateral.
A lender marks a hypothecation, which means that the lender has
ownership rights until the loan is fully repaid. In the case of a
Personal Loan for a bike, hypothecation is not required, as you are
the complete owner of your motorcycle from day one.
4. Flexible Use
A Personal Loan offers
you flexibility over how you use the funds. You can use it for both
purchasing a two-wheeler and accessories, as well as insurance or
registration fees, which provide a higher level of financial flexibility.
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5. Quick Disbursal
NBFCs and digital
lenders approve personal loans within a short period. The money is
then disbursed into your account promptly, allowing you to purchase
your bike immediately. You can get a Personal Loan for a bike,
whether you are a salaried individual or self-employed.
To Conclude
Opting for a Personal Loan for your two-wheeler not only simplifies the buying process but also gives you complete financial control, no down payments, no collateral, and quick access to funds. With flexible usage and full ownership from day one, it’s a smart, hassle-free way to ride home your dream bike.
However, it is also essential that you avail of a loan from a trustworthy lender, such as Poonawalla Fincorp. Apply for a Personal Loan of up to ₹50 Lakh and enjoy attractive interest rates, minimal documentation requirements and no hidden charges. Apply today!
FAQs
What is a two-wheeler Personal Loan?
A
two-wheeler Personal Loan is an unsecured loan that you can use to
purchase a bike and cover associated expenses.
What is the difference between a Personal Loan and a
two-wheeler loan?
A two-wheeler loan is secured and
collateralised with the bike, whereas a Personal Loan is not secured
and can be used more flexibly.
Is it possible to finance my bike 100% using a
Personal Loan?
Yes, Personal Loans offer 100%
financing for a bike. It also provides you with complete
flexibility to pay for additional expenses, such as insurance, GST
and accessories.
Do Personal Loans for bikes require down
payments?
No. Personal Loans offer 100% financing when
purchasing a bike. This is why they do not require a down payment.
Is a Personal Loan collateralized?
No,
Personal Loans are unsecured, which means they do not require
collateral. When you buy a bike with a Personal Loan, you retain
complete ownership.
Can both salaried and self-employed individuals apply
for bike loans?
Yes. Both salaried and self-employed
individuals can apply for a Personal Loan for bikes, provided that
they meet the eligibility criteria.
Is it possible to use a Personal Loan to purchase bike
accessories and cover insurance?
Yes, there are no
end-use requirements on Personal Loans, and therefore, you can also
use the money on accessories or insurance.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply