A two-wheeler loan is a type of financing provided by banks or financial institutions to help individuals purchase a two-wheeler, such as a motorcycle or scooter. It is a popular form of consumer loan, especially in countries where two-wheelers are widely used as a cost-effective mode of personal transportation.

• Loan Amount: The loan amount provided by the lender typically covers the entire on-road price of the two-wheeler, including the cost of the vehicle, registration, insurance, and other charges.
• Repayment Terms: Two-wheeler loans come with fixed repayment terms, usually in the form of equated monthly installments (EMIs) spread over a specific period, which can range from a few months to a few years.
• Interest Rates: The interest rates on two-wheeler loans can be either fixed or floating, depending on the lender’s policies and the loan agreement.
• Down Payment: Borrowers are required to make a down payment towards the two-wheeler’s purchase price. The down payment amount can vary based on the lender and the borrower’s creditworthiness.
• Documentation: Borrowers need to submit documents like identity proof, address proof, income proof, and other relevant documents to apply for a two-wheeler loan.
• Collateral: In most cases, the two-wheeler itself serves as collateral for the loan. If the borrower defaults on repayments, the lender can repossess the vehicle to recover the outstanding amount.
• Purpose: Two-wheeler loans are specifically designed to facilitate the purchase of two-wheelers for personal transportation, making it more accessible for individuals who may not have the full funds upfront.