Should you take a two-wheeler loan or personal loan? Compare interest rates



Are you planning to buy a new bike? It is always exciting to purchase a new vehicle with unique features and comfort. However, financial aspects of the purchasing a vehicle is something that cannot be ignored.

When it comes to financing your two-wheeler, there are two common options – personal loans and two-wheeler loans. While both loans offer a way to purchase your dream bike or scooter, they differ in some aspects.

Personal Loans

A personal loan is an unsecured loan that can be used for a variety of purposes, including the purchase of a two-wheeler. Personal loans generally offer a higher loan amount, flexible repayment tenure, and competitive interest rates. However, since personal loans are unsecured, they come with higher interest rates in comparison to secured loans.

Two-Wheeler Loans

Two-wheeler loans are a secured loan specifically designed for the purchase of two-wheelers. These loans offer lower interest rates compared to personal loans, flexible repayment options, and easy eligibility criteria. However, the loan amount is generally lower than personal loans.

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Which Loan is Right for You?

Choosing between a personal loan and a two-wheeler loan can be a confusing task. Here are some factors to consider before taking the final decision:

Interest Rate: The interest rate of a personal loan is higher than that of a two-wheeler loan. If you have a good credit score, you may be able to avail lower interest rates on a personal loan. However, if you are looking for the lowest interest rate, then a two-wheeler loan is the better option.

Loan Amount: A two-wheeler loan generally offers a lower loan amount than a personal loan. If you are looking for a high-value loan to finance your two-wheeler, then a personal loan may be a better option.

Repayment Tenure: A personal loan offers more flexibility in the repayment tenure in comparison to a two-wheeler loan. You can choose a repayment period ranging from 12 to 60 months for a personal loan. In contrast, a two-wheeler loan generally offers a repayment period of up to 36 months.

Eligibility Criteria: The eligibility criteria for a personal loan are generally stricter than a two-wheeler loan. If you have a stable income, a good credit score, and satisfactory credit report, you can easily avail of a personal loan. However, if you are not eligible for a personal loan, then a two-wheeler loan may be a better option.

Additionally, choosing the right loan depends on your personal preferences and financial situation. If you are looking for a lower interest rate and a secured loan, then a two-wheeler loan is your best bet. On the other hand, if you require a higher loan amount and repayment flexibility, then a personal loan may be a better option.

The table below helps you compare the best interest rates of both personal and two-wheeler loans. You can take a look and decide based on your budget and other requirements.

Interest on Two Wheeler Loan Vs Personal Loan

two wheeler loan chart
Should you take a two-wheeler loan or personal loan? Compare interest rates 10

Compiled by

Note: Interest rate on Personal Loan and Two Wheeler Loan for all listed (BSE) Public & Pvt Banks considered for data compilation. Banks for which data is not adequately available on their website are not considered. Data collected from respective institution’s website as on 11 Jul 2023. Banks are listed in ascending order on the basis of Two Wheeler Loan interest rate, i.e. bank offering lowest interest rate on Two Wheeler Loan is placed at top and highest at the bottom. Interest rate mentioned in the table is indicative and may vary depending on various factors and bank’s T&C.


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