Dreaming of a new two-wheeler but strapped for cash? A Personal Loan for a two-wheeler may be the right solution to bridge the gap and get you on the road sooner. But is it the right financial decision? This blog explores the reasons to purchase a new two-wheeler with a Personal Loan and things to remember before applying, helping you make an informed choice that fits your budget and financial goals.
Reasons to Purchase a Two-wheeler with a Personal Loan

Following are some of the most important reasons to purchase a two-wheeler with a Personal Loan for two-wheeler:
1. 100% on Road Price: A Personal Loan allows you to finance the entire on-road price of a two-wheeler, which includes the ex-showroom price, insurance, registration fees, and other road-related charges.
2. No Down Payment Required: Unlike two-wheeler loans, a Personal Loan does not require a down payment. This can significantly reduce the upfront cost of buying a two-wheeler, making it more manageable for your budget in the short term.
3. No Hypothecation Involved: When you take a two-wheeler loan, the two-wheeler you just bought becomes collateral for the loan. This means the lender has ownership rights until the loan is fully repaid. With a Personal Loan, the two-wheeler remains in your possession – there is no hypothecation involved.
4. Competitive Interest Rates: A Personal Loan offers competitive interest rates, especially if you have a good credit score. However, your credit score also affects your interest rate and loan terms.
5. Basic Eligibility Criteria: Personal Loan eligibility criteria are simpler than those for two-wheeler loans. Your income, credit score, and employment history are considered. This can be advantageous if you do not meet the stricter requirements associated with two-wheeler loans.
6. Shorter Loan Tenure: Personal Loan repayment terms are often shorter than those for two-wheeler loans. This can be appealing if you want to get out of debt faster. However, keep in mind that shorter repayment terms also mean higher monthly instalments. Be sure you can comfortably afford these before committing to a Personal Loan.
Also Read - What is Personal Loan? Things You Should Know
Things to Remember Before Opting for a Personal Loan for Two-wheeler
Here are the things you must remember before opting for a Personal Loan for two-wheeler:
- Budget Wisely: Calculate all costs – from the bike's price and insurance to registration and accessories. Set a budget that covers it all.
- Shop Around: Don't settle for the first loan you find. Compare different lenders and options to get the best deal with favourable terms.
- Avoid Overborrowing: Only borrow what is necessary to cover your bike and associated expenses, so you do not pay extra interest.
- Loan Tenure: Choose a loan tenure that fits your financial situation and repayment ability. Shorter tenures can help you save more money on interest, while longer ones offer smaller EMIs.
- Plan Repayments: Have a solid plan in place for repaying your loan. Ensure your monthly EMIs fit your budget comfortably and repayment capacity.
Also Read - Manage your Unplanned Expenses with an Affordable Personal Loan
To Conclude
Getting a Personal Loan for a two-wheeler can be a viable option if you want immediate access to funds. A Personal Loan provides funds for the entire two-wheeler cost, with no downpayment and hypothecation. However, remember to prioritise affordability and carefully compare interest rates with dedicated two-wheeler loans. By considering all the factors and planning your finances strategically, you can cruise confidently on your new two-wheeler without hurting your financial well-being.
If you are looking for quick funds, avail of a Personal for a two-wheeler with Poonawalla Fincorp. Get up to Rs. 30 Lakh with minimal documentation and quick disbursal. Apply now!