Two Wheeler Loan: Things to consider before you apply

Last Modified: 8-December-2022

Things to consider before applying for Two Wheeler Loan

Recently, two-wheelers have become imperative to independent commuting in India as the country embarks on massive economic development.

However, the penetration rate is lower as compared to other developing countries.

There are over 740 million people in India within the rural population, and only 30% of these people have a two-wheeler.
In this scenario, finance companies have asked for priority sector lending status for them. The priority sector is a sector that the government and the RBI deem essential for the development and growth of the economy over other sectors.
This would help them get cheaper funds from the bank, and they can provide instant two-wheeler loans to people in rural areas at more affordable rates.

A two-wheeler is crucial to the rural areas’ economy because it helps improve the quality of life and makes it more convenient to travel at an affordable cost.

Things to Consider while applying for a two-wheeler loan

Taking a loan to buy a two-wheeler is a great decision. However, individuals need to ensure that they are taking their loan at the right time and not making a mistake by taking one.

Let us look at a few do’s one needs to consider before applying for a two-wheeler loan.

1. Examine the lender

There are plenty of lenders waiting to offer a two-wheeler loan to individuals. Thus, compare different lenders’ interest rates and offers before choosing a lender.

Conducting extensive research will help individuals get a better deal on their two-wheeler loans.

With Muthoot Capital, a reliable lender, individuals can get a two-wheeler loan at attractive deals which suit their needs.

2. Check eligibility criteria

Before individuals apply for a two-wheeler loan, they need to ensure that they are eligible to get a loan with their preferred lender.

Each lender’s two-wheeler loan eligibility criteria are different, and individuals might not want to be rejected because of some conditions.

To find the best deal on a two-wheeler loan, select a lender whose criteria matches your profile.
With Muthoot Capital, getting a two-wheeler loan is quick and hassle-free, and the eligibility criteria are easy to meet.

3. Check the interest rate

A two-wheeler loan is a great option if individuals want to buy a two-wheeler without shelling out a hefty amount in one go.

However, before going for it, individuals are advised to check the interest rate that the lender is charging.

As there are plenty of lenders in the market offering loans, they might get stuck with one that charges an excessive rate of interest on the loan amount.

With Muthoot Capital, individuals can get a two-wheeler loan at attractive interest rates with no hidden charges and minimum documentation.

4. Evaluate repayment options

Before applying for a two-wheeler loan, it is essential to evaluate different repayment options and ensure that one can make the monthly installments.

A flexible EMI schedule makes it easy for individuals to manage their budget and guarantees their payments are always on time.

With Muthoot Capital, individuals can get flexible repayment options with a maximum loan tenure of up to 48 months.

Things to Avoid while applying for a two-wheeler loan

Here are some of the don’ts while applying for a two-wheeler loan.

1. Avoid multiple loan application

Individuals need to ensure that they do not make multiple loan applications when applying for a two-wheeler loan. It will not only ruin their credit score but will also give the wrong impression to the lenders.

2. Do not overborrow

Overborrowing to buy a two-wheeler is not the wisest decision. It could hurt one’s budget and lead to loan default and thus screw up the credit score.

Before applying for a two-wheeler loan, individuals are advised to look for a two-wheeler within their budget and calculate their affordability with an EMI calculator.

3. Do not fail to pay EMIs on time

When individuals apply for a two-wheeler loan, they need to remember that one of the most common pitfalls to avoid is skipping payments on the loan.

Missed EMI payments on the two-wheeler loan can upset the credit score.

Further, defaulting on EMIs regularly may mean that the two-wheeler can be sold off to get the borrowed money back. Individuals need to pay them on time and in full to stay out of trouble.


Before taking a two-wheeler loan, individuals are advised to search across lenders and pick a reliable lender who provides the best financing and offers. Further, keeping documents handy will ensure that the loan is approved quickly and the two-wheeler finance gets approved in a few minutes.

In fact, today, all one needs is a smartphone to apply for any two-wheeler, ranging from a comfortable gearless scooter to a buzzing sports bike.

About Author
Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.
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