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How To Buy A Bike On EMI


Key Highlights

  • Buying a bike on EMI makes it more affordable and manageable for your budget.
  • NBFCs like Shriram Finance offer a hassle-free online application process for bike loans.
  • Meet specific criteria like age, employment proof, and residence proof to qualify for a bike loan.
  • Shriram Finance provides flexible repayment options with varying tenures and the ability to foreclose the loan.

For many, owning a bike is a dream that represents freedom, adventure, and convenience. However, the financial flexibility of making a lump sum payment upfront can make this dream seem out of reach. But fear not! Bike loans with equated monthly instalments (EMI) are here to bridge the gap. In this blog, we will guide you through the step-by-step process of how to buy a bike on EMI, making your dream of owning a bike a reality.

Follow these Steps to Buy a Bike on EMI

Step 1: Research and Select a Bike:

When considering how to buy a bike on EMI, start by conducting thorough research to find the perfect bike that fits your preferences and requirements. Take into account factors such as brand, model, features, and price range. Ensure that the bike you choose is eligible for purchase through EMI schemes. Opting for EMI allows you to spread out the bike's cost over time, making it more affordable and manageable for your budget.

Step 2: Check Eligibility:

Before diving into the EMI process, it's crucial to determine your eligibility for a bike loan. The loan approval highly depends on whether or not you meet the eligibility criteria. Eligibility criteria differ depending on the lending institution; for example, Shriram Finance has the following eligibility criteria:

  • Age: 21-59 years
  • Employment Proof:
  1. Salaried professionals: Work experience letter of current company of at least 1 year
  2. Self-employed professionals: Active business with a successful track record of 2 years
  • Residence Proof: Must be residing at current address for at least one year

Step 3: Gather Required Documents:

To streamline the loan application process, gather the necessary documents. These may include: 

  • Identity proof (Passport, Driving License, etc.)
  • Address proof (AADHAAR Card, Utility Bill, etc.)
  • Other documents (Passport Size Photographs, Bank Statements, Vehicle Registration Certificate on receipt for New Vehicles,

Having these documents handy will expedite the application process. Check out the full list of documents required by Shriram Finance.

Step 4: Apply for the Loan:

Once you've selected the financing option and assembled the required documents, it's time to apply for the bike loan. While offline processes can sometimes be hassling, non-banking financial companies (NBFCs) like Shriram Finance offer a streamlined and hassle-free experience. To apply for the Shriram Two-Wheeler Loan, follow these steps:

  1. Visit the Shriram Finance website
  2. Register your mobile number and enter details
  3. Get your voucher and enter the showroom
  4. Meet the Shriram Finance representative
  5. Submit KYC documents and complete the process

Step 5: Loan Approval and Bike Purchase:

After submitting your application, the lending institution will review your documents and assess your creditworthiness. If your loan is approved, you will receive an offer letter detailing the loan terms, including the EMI amount, interest rate, and repayment tenure. Use the Shriram Finance EMI Calculator to determine your monthly interest based on the loan amount, interest rate, and repayment period. Shriram Finance offers a flexible repayment period with tenures ranging from 12 to 36 months.

Step 6: Down Payment and Documentation:

Upon accepting the loan offer, you may be required to make a down payment, typically a percentage of the bike's on-road price. Additionally, complete any necessary documentation, such as loan agreements and hypothecation forms, to finalize the purchase.

Note: A hypothecation form is a legal document that establishes an agreement between the borrower and the lender for using a two-wheeler as collateral. It outlines the terms and conditions of the loan, ensuring the lender's claim on the vehicle until repayment.

Step 7: EMI Repayment:

With the necessary formalities completed, you can finally ride your new bike home. The EMI repayment period begins as per the agreed-upon terms. Make timely payments to void penalties or any negative impact on your credit score.

You can also foreclose the loan by prepaying the loan amount. However, the loan foreclosure might attract some charges. Make sure to read the loan document properly to get a better understanding of all fees and charges applicable.


Whether you're a first-time buyer or looking to upgrade your ride, the convenience of EMI options allows you to manage your finances while enjoying the thrill of the open road. By following the exact steps outlined in this guide on how to buy a bike on EMI, one can navigate the process.

And when it comes to choosing a reliable and trusted partner for your bike loan, consider Shriram Two-Wheeler Loan. With interest rates starting 11.5% p.a.*, it offers quick disbursals within 24 hours of approval. It can also finance up to 100% of the on-road price of the two-wheeler. So now, when the question arises, ‘how to buy a bike on EMI,’ look no further than the Shriram Two-Wheeler Loan. Take the first step towards owning your dream bike by visiting the Shriram Finance website today!


How to buy a bike in instalments?

To buy a bike in instalments, follow these steps:

Step 1: Select the desired bike

Step 2: Check eligibility

Step 3: Gather required documents

Step 4: Apply for the loan

Step 5: Wait for loan approval and then purchase the bike

Step 6: Complete the down payment and documentation

Step 7: Repay the EMI

I am planning to buy a bike through EMI, but my salary is 10k only. How can I get an EMI?

Having a low salary may affect your eligibility for certain EMI options. However, you can explore the following options:

  1. Choose a bike that fits within your budget.
  1. Consider adding a co-applicant with a higher income or a guarantor to enhance your eligibility.
  1. Explore longer loan tenures to reduce the EMI amount, making it more manageable with your salary.
  1. Improve your credit score by paying off any existing debts or loans and maintaining a good repayment track record.

What are the advantages of purchasing a bike by paying cash instead of taking a loan in India?

Purchasing a bike by paying cash instead of taking a loan in India has the following advantages:

  1. Avoidance of interest
  2. No debt burden
  3. No impact on credit score

While purchasing a bike by cash has its advantages, taking a loan can provide the benefit of preserving your cash reserves for other financial needs or investments. Additionally, taking a loan also allows you to build a positive credit history, which can be valuable for future financial decisions.

Can I buy a used bike on EMI?

Yes, some NBFCs like Shriram Finance offer pre-owned two-wheeler loans along with EMI options for purchasing used bikes. However, the availability of such options may vary, and the terms and conditions may differ from those for new bikes. It's recommended to inquire with the lender or dealer regarding the availability and specifics of buying a used bike on EMI.

Can I prepay my bike loan before the completion of the loan tenure?

Yes, most bike loan providers allow you to prepay the outstanding loan amount before the completion of the loan tenure. However, there may be prepayment charges or penalties involved, depending on the terms and conditions of the loan agreement. If the loan comes with a prepayment fee, the charges will be specified in the loan agreement.

Get a two wheeler loan at low interest rates