Personal Loan vs Bike loan - Which One Should You Choose?

Varieties of loans are available these days to meet different kinds of needs. A home loan to buy a home, an education loan to fund higher education, a car loan for buying a car, and on the same lines we have bikes or two-wheeler loans to fund your purchase of a scooter/motorcycle.

On the other hand, you have personal loans that do not come with an attached condition for use. You can choose to use a personal loan for any purpose.

Features of a Personal Loan

A personal loan is an unsecured short term loan that can be availed by an individual from different lenders like banks, NBFCs, co-operative banks, or online fintech lenders. The eligibility criteria and documentation requirements for availing a personal loan are less stringent. Also, a personal loan comes across as one of the easiest loans to avail. The rate of interest charged on a personal loan is higher in comparison to a bike loan.

Features of a Bike Loan

A bike loan or a two-wheeler loan, on the other hand, is a secured loan. This loan can be availed only against the security of a two-wheeler. The asset (bike/two-wheeler) remains hypothecated with the lender of the loan till the loan is repaid in full.

Earlier, tenures of bike loans were the same as personal loans, however, these days extended tenures are becoming more common. The amount that can be availed as a loan is higher, the eligibility conditions for a bike loan are generally more stringent.

Comparison Between a Personal Loan v/s Bike Loan

As we see, the features of a personal loan and a bike loan are quite varied. It is good to carry out a feature to feature comparison to see how they both stack up against each other.

Personal Loan Bike Loan
Use of the loan amount Can be used for anything Only for purchase of a two-wheeler/bike/scooter
The maximum amount of loan allowed Anywhere between Rs 5000 to Rs 40 lakhs Restricted to the price of the bike.
Down Payment for the loan No down payment required At times, down payment of 10-20% of the on-road cost of the two-wheeler may require to be paid
Interest on the loan Starts from 10.5% onwards From 9.55% onwards
Tenure of the loan Maximum of 5 years Extended tenure of 7years allowed
Eligibility Criteria Depends on the lender Can be little relaxed as there is collateral of the bike purchased
Documentation Simple May require more documents
Lenders Banks, NBFCs or online lenders Only from Banks or NBFCs
Time and Ease of disbursal Very easy when a personal loan is availed from an online lender. Approval and disbursal in shorter amounts of time Longer duration for disbursal. May require coordination between the dealer and the lender.
Ownership of the bike purchased With the buyer always Bike ownership remains with the lender till the loan is repaid in full.

How can an Online Personal Loan from Money View Help You Buy a Two-Wheeler?

As you can see from the comparison above, a personal loan can also make good as a loan for a bike and in certain aspects, proves better than a bike loan.

An online personal loan from Money View comes as a good replacement for a bike/two-wheeler loan for many reasons as mentioned below.

  • Easy in Availing:

    When you are looking to buy a two-wheeler on loan, you would want to get it in the easiest possible way. A personal loan from Money View is a completely online process. So you need not visit your bank or other lenders. All you need is a computer or a mobile and you can apply for a personal loan from the comfort of your home/office.

  • Pocket-Friendly Interest Rates:

    Interest rates for a bike loan starts from 9.55% and can go as high as 22% as well. The interest rate on a loan is determined by the credit score, employment status, income of the individual, age, other liabilities being serviced, etc. Whereas, a personal loan from Money View comes as a great interest rate of 1.33%pm onwards.

  • Available at Low Credit Score:

    A credit score is an important determinant that decides your loan eligibility. As bike loans are mostly lent by the banks and financial institutions, their credit score stands at a minimum of 750. However, we at Money View, require a minimum CIBIL score of 650 as we use our in-house credit scoring model to determine your creditworthiness.

  • Fastest Disbursal:

    Bike loans can take some days for disbursal even if all your documents are in order. On the other hand, a personal loan from Money View can be disbursed in a matter of a few hours from the time of approval. So there is hardly any waiting period between you and your dream bike!

  • Easy in Availing:

    A bike loan is easily available when you are looking at buying a new bike. However, there are no two-wheeler loans available when you want to buy a second-hand two-wheeler. But Money View offers loans up to Rs 500000 that can help you buy a second hand bike, as personal loans can be used for any purpose.

  • No Hypothecation or Proof of Purchase Needed:

    When you avail of a personal loan to purchase a two-wheeler from Money View, you need not submit any proof of purchase or hypothecate your bike with us. So, the bike/two-wheeler is in your name from day 1 and you save yourself the trouble of removing the hypothecation against your name after the loan is repaid.

How to Apply for a Money View Online Loan for a Bike?

After reading all the benefits of availing an online personal loan for buying your dream two-wheeler, we are sure you would want to know how you could apply for a loan from Money View. Do not worry! We have a process that’s as easy as 1-2-3.

  1. Check Your Eligibility –

    Find out the maximum loan amount you’re eligible for, on our loan app or website in 2 minutes

  2. Select Your Plan –

    Choose a custom loan amount and a repayment period that suits your financial needs

  3. Upload Your Documents –

    Provide your personal details and upload the necessary documents, all on the app or website

  4. Get the Loan Amount –

    Get the loan amount disbursed to your account in 2 hours of approval

The next time you are looking to purchase a two-wheeler, you could easily apply for a personal loan from Money View.

Do you need more information on our loans or need assistance in applying for one? Get in touch with us at or call us at 080 4569 2002.