Personal Loan vs Two Wheeler Loan: Which One is the Best

Whether you want a brand-new motorcycle to beat everyday traffic or just for the thrill of riding, a loan will ensure that you make zero compromises when buying your dream bike.

But you would need to decide which one to choose: Personal loan vs Two-wheeler loan.

Want to know which one is better for you? Keep reading to find out.

What is a Two-Wheeler Loan?

A two-wheeler loan is the money you borrow to purchase a bike or scooter. You have to use this loan specifically to purchase a two-wheeler and cannot use it anywhere else. You may have to pledge the two-wheeler you buy using this loan as collateral.

What is a Personal Loan?

A personal loan is the money you can borrow from a lender to meet your financial needs. You can use this money for any kind of expense like buying a two-wheeler, home renovation, travelling, etc. You don’t have to give any security against these loans because they’re unsecured loans.

Also Read: Get Home Renovation Loan from Zype!

Personal Loan vs Two Wheeler Loan: Characteristics

Personal Loan vs Two Wheeler Loan: Which one should you choose?

It’s important you evaluate your financial situation and requirements before choosing between a personal loan and a two-wheeler loan.

While both can help you purchase a new bike, they have very different features and benefits.

If you want a loan with longer repayment tenure, lower interest rates and only to purchase a bike, then a two-wheeler loan will be a better option.

But if you want a high loan amount without giving any collateral against the money you borrow, it’s better you choose a personal loan.

Also Read: 13 Things You Need to Check Before Getting a Two-Wheeler Loan

Personal Loan VS Two Wheeler Loan: Features & Benefits

Understanding the features and benefits of both loans can help you make a more informed decision.

Two-Wheeler Loan:

1. Collateral:

Two-wheeler loans are secured loans. You have to provide the bike or scooter you purchase using the loan as collateral. If you’re unable to repay your loan, the lender has the right to seize the collateral.

2. Interest Rate:

The interest rate charged on two-wheeler loans is comparatively lower and can start at as low as 8.55% p.a.

3. Loan Amount:

Two-wheeler loans offer a lower loan amount as compared to personal loans. If you want a loan that only covers the expenses of purchasing a bike or scooter, then a two-wheeler loan is a better option for you.

4. Tenure:

The repayment tenure for a two-wheeler loan is longer. The repayment period offered on these loans can go up to even 7 years.

5. Processing Time:

It takes longer to process a two-wheeler as compared to a personal loan due to a longer application process and documentation.

6. EMI Payments:

Due to a longer repayment tenure, the EMIs to repay your two-wheeler loan will be lesser than a personal loan.

Personal Loan:

1. Collateral:

Usually, personal loans are unsecured loans. You don’t have to pledge any collateral against the loan and can use it anywhere you like.

2. Interest Rate:

As compared to two-wheeler loans, you might have to pay a higher interest on personal loans because they are unsecured loans. You can get an interest rate starting at 8.75% which can go up to 49.5% depending on the lender.

3. Loan Amount:

You can get a higher loan amount if you’re taking a personal loan. And that’s not it! You can use this loan anywhere you like (no questions asked).

4. Tenure:

Because a personal loan is an unsecured loan, the repayment tenure is shorter. The repayment tenure of a personal loan can range anywhere between 3 months and 60 months.

5. Processing Time:

Personal loans don’t require a lot of documentation. And with the rise in digital loan providers, you can be approved for a loan in no time! On Zype, you can complete an easy application with no document uploads and get approved for a personal loan up to 5 lakhs!

Also Read: Documents Needed for Personal Loan

How to Apply for a Personal Loan for a Two-Wheeler on Zype?

Want a personal loan for a two-wheeler without giving any collateral? Follow these simple steps and get approved for a loan up to ₹5 lakhs instantly!

Download the Zype app from the Play Store or Appstore & create your account.

Add your PAN number along with some other basic details like your name & phone number to complete your application.

Based on your credit profile, get approved for a credit line within 60 seconds.

Complete your KYC on Zype you only need to complete OTP on Aadhaar linked mobile number to unlock your loan limit.

Select your desired loan amount & EMI option.

Transfer the cash directly to your account in a single tap.

Also Read: What is KYC – Know Its Meaning, Types, & Importance

Conclusion

Both personal loans and two-wheeler loans can help you purchase the bike of your dreams. But it’s important you evaluate your financial situation and needs before choosing between the two.

If you’re looking for a quick personal loan for a two-wheeler, Zype offers personal loans up to Rs5 lakhs starting at just 1.5%