Two-Wheeler Loan for Low-Income Earners: Affordable Financing Options
May 22, 2025

For many low-income earners, owning a two-wheeler can significantly improve their quality of life and employment opportunities. However, the upfront cost of purchasing a motorcycle or scooter can be slightly daunting. To make your bike purchase easier, you can opt for a Two-Wheeler Loan.
In this article, we'll explore various Two-Wheeler Loan options designed for low-income earners, helping you find the perfect budget bike loan to suit your needs.
Why Two-Wheelers are Ideal for Low-Income Earners?
Owning a two-wheeler has numerous benefits, particularly for those with limited incomes:
- Cost-Effective: Compared to cars, two-wheelers are cheaper to buy, maintain, and fuel. With petrol prices hovering around ₹100 per litre in 2024, bikes are significantly more fuel-efficient.
- Time-Saving: A two-wheeler can save hours spent on public transport, allowing workers to reach their jobs quicker.
- Accessibility: Many Indian cities and rural areas have narrow lanes where two-wheelers are easier to navigate.
By investing in a two-wheeler, low-income earners can enhance their daily commute, improve work productivity, and even unlock income opportunities.
Understanding Two-Wheeler Loans for Low-Income Earners
Getting a two-wheeler loan as a low-income earner isn’t just possible—it’s designed to cater to your financial limitations. Banks understand that reliable transportation is crucial for people from all walks of life, and they offer loans with affordable EMIs to ensure you can manage payments without financial stress.
Key Benefits:
- Low Down Payment: Many banks and NBFCs (Non-Banking Financial Companies) offer two-wheeler loans with down payments as low as 10% of the vehicle’s on-road price.
- Flexible EMIs: Borrowers can select an EMI plan that fits their budget, with loan tenures ranging from 12 to 48 months.
- Quick Approval: Lenders often provide instant loan approval if the applicant meets the eligibility criteria and submits the required documents.
Eligibility Criteria for Low-Income Earners
While loan eligibility varies by lender, there are some standard criteria most financial institutions consider when granting a two-wheeler loan:
- Minimum Age: Applicants must be at least 18 years old.
- Income: Typically, a monthly income of ₹10,000 is required, but some lenders may set a lower limit, especially for those in rural areas.
- Employment: Both salaried and self-employed individuals can apply. However, salaried employees often find it easier to secure loans due to stable incomes.
- Credit Score: Although having a good credit score helps, it isn’t a strict requirement for low-income applicants. Some NBFCs and lenders offer loans with minimal credit checks.
That said, Ujjivan SFB offers Chakra Loan - a two-wheeler loan that comes with simple eligibility criteria. Any salaried or self-employed person can apply for a two-wheeler loan with Ujjivan SFB. We offer financing up to 95% of the on-road price of the vehicle.
Tips for Low-Income Earners to Get the Best Two-Wheeler Loan
Here are some practical tips to secure a favorable loan deal:
- Compare Interest Rates: Different banks offer different interest rates. It’s always a good idea to compare various banks and NBFCs to make an informed decision.
- Choose a Shorter Tenure: While a longer loan tenure might reduce monthly EMI, you’ll end up paying more interest over time. Opt for the shortest tenure you can comfortably afford.
- Negotiate the Down Payment: Some lenders might allow you to negotiate the down payment amount based on your financial situation.
- Utilise Government Schemes: In some states, there are subsidies and incentives for low-income individuals purchasing two-wheelers, particularly for electric bikes.
Pro Tip: Before applying for a bike loan, compare your two-wheeler loan EMI with the help of our Two-Wheeler Loan EMI Calculator. Adjust the loan amount, tenure and interest rate on the calculator to check your loan EMI. This would help you plan your finances better.
Final Thoughts
For low-income earners, owning a two-wheeler can be a game-changer, making commuting easier and even opening up income opportunities. With the right loan, the process is affordable and manageable. By understanding the eligibility requirements, documents needed, and available loan options, you can confidently apply for a two-wheeler loan without putting too much strain on your finances. So, if you’ve been dreaming of buying your first bike, now’s the perfect time to explore loan options and turn that dream into reality.
Ujjivan SFB offers Chakra Loan - a two-wheeler loan that offers maximum convenience, including ease of application, competitive interest rates, financing up to 95% on the on-road price of the vehicle and more.
FAQS
1. What is the minimum income required for a two-wheeler loan in India?
Most lenders require a minimum monthly income of ₹10,000. However, some banks may offer loans with lower income criteria, particularly in rural areas. Contact your bank to check the loan eligibility criteria.
2. Can I get a two-wheeler loan with no credit history?
Having a credit history or a good credit score can fetch you loans at preferential or lower interest rates.
3. How long is the typical repayment tenure for a two-wheeler loan?
The tenure usually ranges from 12 to 48 months, depending on your financial situation and preference.
4. Are there any additional charges apart from the EMI?
There could be additional charges including processing fees, documentation fees, and prepayment penalties. It’s essential to clarify these costs upfront.
Latest Blogs

Home Insurance vs Home Loan Insurance: A Detailed Guide
May 16, 2025
As of September 30, 2024, total outstanding individual housing loans stood at ₹33.53 lakh crore (₹33.53 trillion), marking a 14 % YoY increase amid a post‑pandemic housing boom.

Is There Any Penalty If You Foreclose or Prepay Your Home Loan?
May 14, 2025
Did you know nearly 40% of home loan borrowers in India prefer prepaying their loans partially or fully within the first 10 years to save on interest costs? With rising financial awareness and better income visibility, prepaying a housing loan has become a go-to strategy for faster debt freedom.

ATM Withdrawal Charges in India: New RBI Rules Effective May 1, 2025
May 13, 2025
If you frequently use your debit card at ATMs—whether for cash withdrawals or balance inquiries—it is important to be aware of recent ATM withdrawal charges and regulatory changes.

What is In-Principle Approval in Home Loan?
May 12, 2025
Buying a home is one of the biggest financial decisions most people make in their lifetime. While shortlisting properties and budgeting are crucial steps, securing a home loan is often the key that unlocks the dream of homeownership.

Top Government Housing Schemes for First-Time Home Buyers in India (2025 Guide)
May 08, 2025
For first-time homebuyers, the process of purchasing a home can be overwhelming due to increasing property prices and complex loan eligibility requirements.
Quick Links
Registered with DICGC

