Latest Trends in Two Wheeler Loans 2025: What To Expect
July 05, 2025

Are you considering purchasing a new motorcycle? With motorcycles being the most preferred mode of commute in India, it's no surprise that many people turn to two-wheeler loans to fulfil their dreams of owning a bike. In fact, around 75% of motorcycle owners in India fund their purchases through these loans.
In this article, we have laid out the latest trends in two-wheeler loans in 2024 so that you can understand where the market is shifting towards.
Bike Loan Trends for Electric Bikes
Electric two-wheelers (E2Ws) have gained significant popularity due to their environmental friendliness and lower operating costs. The sale of EVs in India is expected to grow by 8-10% annually, reflecting positive consumption of electric two-wheelers. In fact, the Indian Government’s EV adoption target to make 30% of the total sales of vehicles EVs by 2030, further strengthens the focus on electric vehicles.
Banks and NBFCs have introduced specialised loan schemes for EV purchases with extended repayment periods, lower interest rates, and minimal processing fees, aligning with the current bike loan trends. Government incentives and subsidies further enhance affordability.
As demand for electric bikes grows, lenders are likely to offer more buyer-friendly features, shaping the future of motorcycle loans. Overall, loan market trends indicate a focus on sustainable transportation, positioning electric two-wheeler loans as a key segment in the financial landscape.
Lower Interest Rates for the Luxury Motorcycle Segment
The luxury motorcycle segment in India is booming, driven by rising incomes and the passion for riding. Banks have recognised these trends offering competitive interest rates for high-end models.
Bike loan trends also show financial assistance for purchasing luxury bikes and accessories, making superbikes more accessible. The future of motorcycle loans and overall loan market trends favour this growing demand.
Government Subsidies - Future of Motorcycle Loans
Apart from affordable loans for electric bikes, government subsidies play an important role in promoting the adoption of electric two-wheelers in India. The EMPS 2024 program offers a subsidy of up to ₹10,000 on the purchase of electric two-wheelers. These subsidies further incentivise buyers to opt for electric bikes and contribute to a cleaner environment.
Digital Loan Application Process
The digital revolution has transformed the financial sector. Instant loan approvals, digital sanctioning with minimal paperwork, and paperless documentation are now the norm. Banks and NBFCs use digital platforms to ensure a seamless borrowing journey.
On these platforms, you can submit loan requests, upload documents, and track application status online. E-signatures and digital verification streamline the process, enhancing your experience. Advancements in Artificial Intelligence (AI) and Blockchain technology will further enhance the future of motorcycle loans, making the process even more efficient and user-friendly.
Risk-Based Pricing
Risk-based pricing is a strategic approach where lenders determine loan rates and terms based on borrowers' risk profiles and creditworthiness. Financial institutions analyse credit scores, income stability, debt-to-income ratios, and employment history to assess risk. Borrowers with higher credit scores and lower risk profiles can qualify for lower interest rates and favourable loan terms.
Advancements in data analytics have enhanced risk assessment accuracy, allowing lenders to make informed decisions and offer competitive pricing.
Loan Market Trends - Customised Two-Wheeler Loans
The future of motorcycle loans lies in personalised products tailored to borrowers' needs. Established banks and NBFCs are already customising offers with flexible loan terms, repayment options, and interest rates. Step-up EMIs, balloon payments, and variable interest rates are gaining popularity, reflecting bike loan trends in 2024.
These options ensure borrowers can choose the most suitable repayment structure based on their financial circumstances, enhancing accessibility and aligning with evolving loan market trends.
Final Thoughts
If you're considering purchasing or upgrading a motorcycle, stay informed about trends in two wheeler loans 2024. Understanding these bike loan trends can help you make decisions aligned with your financial goals.
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FAQs
1. Are two-wheeler loans only available for new motorcycles?
No, two-wheeler loans are available for both new and used motorcycles. Banks and NBFCs provide financing options for both types of purchases.
2. Can I get a two-wheeler loan if I have a low credit score?
While banks typically require a minimum credit score of 700+. Ideally, to fetch better deals on your two-wheeler loan, your credit score should be above 750. Though you can still get a two-wheeler loan with poor credit score, it's important to note that lower credit scores may result in higher interest rates.
3. What are the documents required for a two-wheeler loan application?
The documents required varies across banks. But, commonly requested documents include identity proof, address proof, PAN card, salary slips, bank statements, cancelled cheque, and vehicle registration certificate. Check with your bank for better clarity.
4. How long is the repayment tenure for two-wheeler loans?
Two-wheeler loans are typically given for a duration of 1 to 4 years. Some lenders may offer longer repayment tenures depending on the loan amount and borrower's profile.
5. Can I prepay my two-wheeler loan before the designated tenure?
Yes, you can prepay your two-wheeler loan before the designated tenure. However, lenders may charge a foreclosure fee for early repayment of the loan. It's advisable to check the terms and conditions of your loan agreement regarding prepayment charges.
6. Are there any benefits for women borrowers applying for two-wheeler loans?
Some lenders offer special benefits such as lower interest rates or exclusive schemes for women borrowers applying for two-wheeler loans. It's worth exploring these options to find the most suitable financing solution.
7. Can I get insurance coverage with my two-wheeler loan?
Many banks offer bundled insurance coverage as part of the loan package. Contact your bank to get better clarity on the insured amount.
8. What are the tax benefits associated with two-wheeler loans?
While personal two-wheeler loans generally do not offer tax benefits, loans taken for business purposes may qualify for tax deductions on interest payments.
9. How does my employment history impact my loan eligibility?
Your employment history may not be a Banks consider factors like credit score, repayment capacity, monthly income, and other such parameters in assessing loan eligibility.
10. Are there pre-approved two-wheeler loan offers available?
Yes, some banks pre-approved loans to existing customers based on their credit profiles making the borrowing process quicker and more convenient. However, check your EMI obligations with the help of a two-wheeler loan EMI calculator before applying.
11. What is the minimum down payment required for a two-wheeler loan?
The minimum down payment can vary but is typically around 10-20% of the vehicle's cost. Understanding this requirement helps in planning your finances and aligns with current loan market trends. Ujjivan SFB offers up to 95% financing of the on-road price.
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