Get Personal Loans up to 5 Lakhs in 10 minutes
Get Personal Loans up to 5 Lakhs in 10 minutes
Found the bike or scooter you want? The next step is how to finance it. You may have a secured bike loan available through the dealer, or you may be considering a personal loan. The EMI is only one part of the picture. The loan you choose also affects your total interest, the actual expense you can cover, and whether the lender is listed on the bike's Registration Certificate (RC).
A secured bike loan uses the bike as collateral and typically offers a lower interest rate. It can be a good option if you are buying a new bike directly from the dealer. But it requires vehicle paperwork, and the lender is listed on the RC until the loan is fully repaid.
Zype, by contrast, offers a personal loan based on your credit profile. This gives you the flexibility to buy a new or used bike, pay a dealer or a private seller, and cover related expenses like insurance and gear.
This page goes over how a personal loan and a secured two wheeler loan compare when you are purchasing a two wheeler.
Zype offers personal loans from ₹3,000 to ₹5 lakh with tenures from 6 to 36 months. These loans are available to eligible applicants and disbursed via RBI-registered NBFC lending partners.
The terms "two-wheeler loan" and "2 wheeler loan" refer to the same product. The main difference between this loan and a personal loan is whether the bike acts as security.
A secured two-wheeler loan is linked to the bike. The lender has a legal claim over the vehicle until the loan is repaid and may repossess it if repayments stop. This lowers the lender's risk, so the interest rate is usually lower.
A personal loan does not require you to pledge the bike. The lender assesses your income and credit profile instead, which generally results in a higher interest rate. This difference affects the cost, paperwork, and flexibility of each option.
| Feature | Secured two wheeler loan | Personal loan (Zype) |
|---|---|---|
| Collateral | The bike acts as security for the loan | Nothing is pledged, thus the bike you purchase solely belong to you |
| Interest rate | Usually lower, because the loan is secured | Higher, since the loan is unsecured |
| What you can buy | Usually a new bike, or a used one within age limits | Any bike, new or used, from a dealer or private seller |
| Extra costs | Often funds the bike only | Can also cover gear, insurance, and registration |
| Ownership | Cleared only after the loan is repaid | Full ownership from the start |
| Speed and process | Often dealer-tied, with vehicle paperwork | Fully digital, based on your credit profile |
A secured two-wheeler loan is often the more affordable option when you are buying a new bike from a dealer and want to keep the borrowing cost low. A personal loan offers more flexibility when you are buying a used bike, purchasing from a private seller, or need funds for expenses beyond the bike itself.
Before choosing, compare the interest rate, the processing fee, the EMI, and the total repayment under each option, and factor in any down payment the secured loan requires.
A secured bike loan usually offers a lower interest rate. A personal loan, however, gives you more freedom over the bike you buy, the seller you choose, and how you use the funds. That can make it the more practical option in a few situations like:
If none of these apply and you are buying a new bike from a dealer, it is worth comparing a secured two wheeler loan first.
When comparing loan options for a two-wheeler, it is important not to treat a personal loan and a secured bike loan as the same product. A secured bike loan is priced against the vehicle, which is pledged to the lender. A personal loan is unsecured, so its cost depends on your credit profile rather than the bike you choose.
When you use a Zype personal loan for the purchase, the same personal-loan pricing applies. The interest rate ranges from 18% to 34% per year on a reducing balance and is set by the RBI-registered NBFC based on your credit profile. A reducing balance means interest is charged only on the amount you still owe, so the cost of the interest gradually falls as you repay the loan.
There is also a one-time processing fee of 2% to 6% of the loan amount. This fee is deducted before disbursal. So, if your approved loan amount is ₹80,000, the amount credited to your account will be a little under ₹80,000 once the processing fee is deducted. This is worth checking before you decide how much to borrow, especially if you need the full amount to pay the seller.
The table below shows how the tenure and type of loan can change the cost of borrowing ₹80,000.
| Loan option | Interest rate | Tenure | Approx. EMI | Approx. total interest |
|---|---|---|---|---|
| Zype personal loan | 24% p.a. | 24 months | ₹4,230 | ₹21,513 |
| Zype personal loan | 24% p.a. | 36 months | ₹3,139 | ₹32,991 |
| Secured bike loan | 11% p.a. | 24 months | ₹3,729 | ₹9,487 |
*The personal-loan rate and secured bike-loan rate used here are illustrative. Processing fees and applicable taxes are not included.
The 36-month personal loan reduces the EMI by about ₹1,091 compared with the 24-month option. However, it also adds about ₹11,478 to the total interest because you are borrowing for a longer period of time. This is why it is important to compare the total interest along with the EMI.
The secured bike loan is the least expensive option in this example. For the same 24-month tenure, its total interest is lower than the personal loan. The reason being the bike is pledged to the lender, reducing the lender’s risk and allowing a lower interest rate.
The advantage of a personal loan is the flexibility it offers. It is especially useful if you are buying a used bike, purchasing from a private seller or want to cover related expenses without pledging the vehicle. You can also reduce the final cost by repaying the loan early. Zype has no lock-in period or foreclosure charge, so you can close the loan whenever your budget allows. By closing the loan early, you save on the interest that would have applied during the remaining months.
For a more relevant estimate, compare the same loan amount and tenure across your loan options. You can use the EMI calculator or refer to the ₹50,000, ₹1 lakh and ₹2 lakh personal loan pages. The small personal loan guide may be more useful for a lower-priced two-wheeler.
Zype checks your eligibility based on your income, age, and credit profile. To apply, you must:
Because this is an unsecured personal loan, you do not have to submit the bike's documents. A salary slip is not usually required either. However, additional income documents may be requested for a higher loan amount.
You have the flexibility to use the loan to buy a new or used two-wheeler, from a dealer or a private seller. And if you are new to credit and do not yet have a CIBIL score, you may still be considered, based on your salary and overall profile. Final approval remains subject to the lender terms.
Register on the Zype app using basic details.
Complete your digital KYC verification with an Aadhaar OTP and live selfie.
Choose your loan amount: Check the bike’s price and essential upfront costs and then borrow only the amount you actually require.
Select a repayment tenure: Compare both the monthly EMI and total interest cost before deciding which repayment tenure you can comfortably manage.
Read the KFS and accept loan agreement: Check the interest rate, processing fee, EMI and total repayment amount in the KFS. Once the loan agreement is signed, the amount amount is credited directly to your bank account.
Yes. A personal loan gives you the flexibility to pick the expense you want to use the loan for, including buying a bike.
It depends on the type of purchase. A bike loan is usually cheaper and works well for a new vehicle bought from a dealer. A personal loan offers more flexibility, which makes it useful for purchase of a second hand bike, a private sale, and cover related costs such as a helmet, gear, and insurance.
Yes. A personal loan works well for a used or second-hand bike. A secured two-wheeler loan often sets an age limit on the vehicle and usually requires a valuation. A personal loan has neither restriction, because it is based on your credit profile rather than the bike. The money also reaches your own account. So, you can pay a private seller directly, which makes buying second-hand simpler.
It depends on the type of loan you choose. A personal loan is unsecured, so you do not need to pledge the bike or submit its documents for valuation. However, for a secured two-wheeler loan, the bike is pledged to the lender as a collateral.
It is possible, but harder. Most lenders check your CIBIL score, so having none makes loan approval more difficult. That said, a missing score because you are new to credit is not always a barrier, as some lenders will also weigh other factors like a steady salary and stable employment. But no genuine lender ignores your credit standing entirely, so be cautious of anyone offering a loan with no checks at all, as that is a sign of an informal or unsafe lender.
The amount you can borrow depends on the lender and, above all, on your income and credit profile. On Zype, the approved amount eligible applicants are offered ranges from ₹3,000 to ₹5 lakh.
It depends on the lender’s prepayment criteria. On Zype, you can close your bike personal loan early. There are no foreclosure charge and no lock-in either, so you can close early when your budget allows and save on the interest you would have paid on the remaining months.
The interest rate charged on Zype for personal loan ranges from 18% to 34% per year and charged on a reducing balance basis. The rate of interest applicable for your loan is based on your credit profile and decided by the RBI registered NBFC disbursing the loan. A processing fee of 2%-6% on the loan amount is applicable, excluding GST. The processing fee applicable is also dependent on your profile. Zype does not charge any fees foreclosure or prepayment of loan. All applicable charges, along with your EMI and total repayment, is disclosed in the Key Fact Statement, which can be reviewed before the loan is disbursed.
Loans are disbursed via RBI-registered NBFCs. Zype is operated by Easy Platform Services Private Limited.
