Can a student get a bike loan?

Can a student get a bike loan?

Bikes are one of the most convenient ways for students to commute quickly. It can be used to easily reach classes on time, go around campus, or just go on a fun ride with friends. It makes students’ lives much easier, especially those who have to travel quite a distance on a daily basis.

However, with limited financial resources and a tight budget, purchasing a bike can be quite steep and not feasible for everyone. One option to consider is taking out a bike loan, which can help you cover the cost of a new or used bike.

Let’s dive in and explore the features of a bike loan for students and how they can choose and apply for a loan that will suit their needs.

Features of a bike loan for students

Here are some key features of a bike loan for students:

  • Simple Application Process: The application process for a bike loan for students is usually simple and hassle-free. Depending on the lender, you may get the option to apply for a bike loan both offline and online. Online application processes are generally faster and more convenient, saving time and effort. You can easily apply for it even if you are stuck between classes.
  • Minimum documentation: As a student, you may not have all the necessary documents to apply for a loan. However, there is no need to worry. Bike loans for students usually require minimal documentation. You may only need to furnish proof of identity, address, and age to apply for it.
  • Co-applicant or guarantor: Since most students don’t have a steady income or credit history, you may need a co-applicant or guarantor to apply for a bike loan. It could be anyone, including your parents and guardians. A co-applicant or guarantor can help increase your loan eligibility and reduce the lender’s risk. Make sure you select someone with a high credit score and who is willing to shoulder the loan liability with you.
  • Monthly income requirement: In the case of bike loans for students, the minimum monthly income requirement is set for the co-applicant. The minimum amount may vary from lender to lender and also depends on the loan amount and tenure. This is to ensure that you have the capacity to make monthly repayments on time.
  • Quick disbursement: Most lenders offer students quick disbursement of bike loans. Once your loan application is approved, the loan amount will be disbursed to your bank account within a few working days.
  • Secured loan: A bike loan is usually a secured loan where the bike is pledged as collateral. However, any other asset can also be offered as a security to your lender. If you default on loan payments, the lender can claim your bike or any other asset you have kept as collateral and sell it off to cover the amount you couldn’t repay. On the other hand, you can also opt for an unsecured loan, but the interest rates for the same can be comparatively higher.
  • Low-interest rates: Bike loans for students usually come with low-interest rates compared to other loans. The loan amount is relatively low, and the tenure is shorter. However, the interest rate may vary from lender to lender and depend on your credit score and loan eligibility.
  • Flexible repayment terms: Lenders offer flexible repayment terms for student bike loans. You can choose a loan tenure that suits your repayment capacity and opt for prepayment or foreclosure options if you have the funds to repay the loan earlier. Make sure you ask your lender about any prepayment penalties beforehand.

Eligibility criteria

Students must meet the eligibility criteria listed below to apply for a bike loan:

  • You should be at least 18 years of age. Some banks or NBFCs might even require you to be a minimum of 21 years of age.
  • You will have to apply for a bike loan with a co-applicant who is employed with a stable income source. The co-applicant will be required to submit their proof of income and meet the minimum income requirements.
  • Most banks and NBFCs would require the co-applicant to have a credit score of 700 and above.

Documents required

Students and their co-applicants need to provide the following documents when applying for a bike loan:

  • Identity proof: Aadhaar card, Voter ID card, driving licence, etc.
  • Age proof: Voter ID card, Aadhaar card, driving licence.
  • Address proof: Utility bills or rent agreement.
  • Income proof: The co-applicant shall provide salary slips or bank statements as proof of income.
  • Passport-size photographs.

How can students choose the right bike loan?

Here are some tips to help students who are applying for a bike loan make an informed decision:

  • Research different lenders: Start by researching different lenders who offer bike loans. It will give you an idea of the various options available and the interest rates different lenders offer. Compare each lender’s interest rates and terms before deciding. Do not apply in many places at once. Too many applications and potential rejections can poorly affect your credit score.
  • Determine your monthly budget: Prior to obtaining a loan for a bike, it’s crucial to figure out the amount you can afford to pay every month. You can use a bike EMI calculator to check your EMIs. It will assist you in limiting your choices and selecting a loan that offers a monthly repayment amount that aligns with your budget.
  • Determine your loan amount: Determine how much you need to borrow to finance your bike purchase. Factor in additional costs such as insurance, registration fees, and maintenance expenses of the bike. Many lenders offer a certain percentage of this amount as a loan.
  • Know the eligibility criteria: Different lenders have different criteria for bike loans. Check if you and the co-applicant meet the lender’s eligibility criteria before applying for a loan.
  • Compare interest rates: When comparing the offers from different lenders, pay attention to the bike loan interest rates. A lower interest rate will save you money in the long run. But along with this, you must also consider other associated costs to make a fair comparison.
  • Check the repayment terms: Make sure to check the repayment terms of the bike loan, including the length of the loan term and the frequency of payments. Some lenders offer flexible repayment terms, which can be beneficial if you want to pay off your loan early or adjust your payments to fit your budget.
  • Check for additional fees: It’s important to ensure that there are no extra charges linked with the bike loan, including origination fees, penalties for prepayment, or fees for late payments. These charges can accumulate and raise the overall cost of the loan.


Getting a bike loan as a student is definitely possible, but it requires careful planning and consideration. With the right approach, you can secure financing for the bike you need. However, it’s important to remember that a bike loan is a financial commitment, so be sure to read the fine print and understand the terms and conditions before signing on the dotted line. Eventually, with some research, budgeting, and planning, you can enjoy the freedom and convenience that comes with owning your own bike, even as a student on a tight budget.


  • Can a student get a loan to buy a bike?

Yes, students can apply for a bike loan to purchase a bike. However, the eligibility criteria may differ between lenders and depend on various factors such as the student’s age, the co-applicant’s income and credit score, and other requirements specified by the lender.

  • Is it really affordable for a student to take a bike loan?

It depends on various factors such as the loan amount, repayment tenure, interest rate, and other charges. Generally, bike loans are offered at lower interest rates than personal loans, making them a more affordable option for students. However, evaluating your finances and repayment capacity before taking any loan is essential.

  • What is the bike loan interest rate for students?

The student’s bike loan interest rate may vary between lenders and depend on the student’s income, credit score, and loan amount. It is advisable to compare various loan options and choose a loan with the lowest interest rate and other charges.

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