A two-wheeler loan enables you to buy a bike of your choice on low-interest rates with monthly EMIs without hurting your budget EMIs or Equated Monthly Installments are designed to repay the two-wheeler loan at affordable prices.

A two-wheeler loan EMI calculator to an online tool designed to calculate the EMI amount payable towards clearing the loan. You need to simply fill in the financial details to get the required information. Once you enter all these details correctly, you can see the auto-computed EMI amount.

There are several factors that affect your bike loan EMI that one should need to consider before applying for a bike loan.

Credit Score:

Credit Score is one of the most important factors when it comes to taking a loan. It considers numerous facets including the number of loans you’ve taken, the loan amounts, whether you made timely payments or missed them and so on. The score comes on a scale that is out of 900, and anything above 700 is deemed a good score. The loan interest rates will depend on this score, and you will have a low-interest rate if your rating is good.   

Loan Amount:

The interest rate also depends on the total amount of the loan you are asking for. To qualify for a bike loan, financial institutions look at the net income you earn. Income criteria for getting a bike loan is quite low, there are usually high chances for low-income earners too to get a bike loan. However, the higher the income level, the lower is the interest rate charged, as higher income means lower risk of default.

Loan Tenure:

The duration of the loan in which the loan is paid off also has an impact on the interest rate charged. Bike loan EMI price depends on your loan tenure. If you have a high monthly EMI price, the interest rate will be lower, as it reduces the risk of you defaulting. Similarly, if you have a long tenure, and a lower EMI rate, your rate of interest will be much higher. As interest rates create a huge impact on your bike loan EMI, but we can reduce it in several ways such as:                                                                         

  • Making a higher down payment
  • Apply for a bike loan with longer tenure                                                                                                                                           
  • Apply for a bike loan from your existing bank account                                                                       
  • Apply for your bike loan on behalf of your spouse by opening a woman saving account, as it offers lower interest rates for women.                                                                                       –
  • By making a full or part repayment of your bike loan amount. 

Dealership Location: 

Prices also depend on the dealership location. As you know, the price of the bike has small variations depending on the dealership location, as each distributor has different costs and different local tax amounts. Since the price of the vehicle varies, the loan amount you apply for will also be different. Thus, in order to get the best deal in the bike loan interest rates, ensure you choose a dealership that gives a good price.

Secured Vs Unsecured Loan: 

As a borrower, one must be aware of secured loans and unsecured loans. A secured loan is one where you promise an asset to the bank as security or collateral. This reduces the rate of interest as there is less risk for the bank in giving you the loan. Whereas unsecured loans are loans where you do not pledge collateral, and thus have higher rates of interest to justify their risk. As bike loans come under secured and unsecured loans wherein secured loans we can keep our bike as collateral, as a result, we can get a higher amount of loan amount and lower interest rate. Whereas unsecured loans are provided with a higher interest rate and lower loan amount as there is no collateral provided as security. So it completely depends upon the borrower to choose whichever option works the best while applying for the loan.


Overall, interest rates charged on bike loans vary a lot, depending on the factors discussed above. While buying a bike, it is important to look at various options of getting loans from different financial institutions to best suit your requirements and grab the lowest interest rate possible.  A bike loan EMI calculator can help you plan your finances better by calculating the amount you have to pay on a monthly basis.

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