Latest Trends in Two Wheeler Loans 2025: What To Expect

Are you considering purchasing a new motorcycle? With motorcycles being the most preferred mode of commute in India, it's no surprise that many people turn to two-wheeler loans to fulfil their dreams of owning a bike. In fact, around 75% of motorcycle owners in India fund their purchases through these loans.

In this article, we have laid out the latest trends in two-wheeler loans in 2024 so that you can understand where the market is shifting towards. 

Bike Loan Trends for Electric Bikes 

Electric two-wheelers (E2Ws) have gained significant popularity due to their environmental friendliness and lower operating costs. The sale of EVs in India is expected to grow by 8-10% annually, reflecting positive consumption of electric two-wheelers. In fact, the Indian Government’s EV adoption target to make 30% of the total sales of vehicles EVs by 2030, further strengthens the focus on electric vehicles. 

Banks and NBFCs have introduced specialised loan schemes for EV purchases with extended repayment periods, lower interest rates, and minimal processing fees, aligning with the current bike loan trends. Government incentives and subsidies further enhance affordability. 

As demand for electric bikes grows, lenders are likely to offer more buyer-friendly features, shaping the future of motorcycle loans. Overall, loan market trends indicate a focus on sustainable transportation, positioning electric two-wheeler loans as a key segment in the financial landscape. 

Lower Interest Rates for the Luxury Motorcycle Segment 

The luxury motorcycle segment in India is booming, driven by rising incomes and the passion for riding. Banks have recognised these trends offering competitive interest rates for high-end models. 

Bike loan trends also show financial assistance for purchasing luxury bikes and accessories, making superbikes more accessible. The future of motorcycle loans and overall loan market trends favour this growing demand. 

Government Subsidies - Future of Motorcycle Loans 

Apart from affordable loans for electric bikes, government subsidies play an important role in promoting the adoption of electric two-wheelers in India. The EMPS 2024 program offers a subsidy of up to ₹10,000 on the purchase of electric two-wheelers. These subsidies further incentivise buyers to opt for electric bikes and contribute to a cleaner environment. 

Digital Loan Application Process 

The digital revolution has transformed the financial sector. Instant loan approvals, digital sanctioning with minimal paperwork, and paperless documentation are now the norm. Banks and NBFCs use digital platforms to ensure a seamless borrowing journey. 

On these platforms, you can submit loan requests, upload documents, and track application status online. E-signatures and digital verification streamline the process, enhancing your experience. Advancements in Artificial Intelligence (AI) and Blockchain technology will further enhance the future of motorcycle loans, making the process even more efficient and user-friendly. 

Risk-Based Pricing 

Risk-based pricing is a strategic approach where lenders determine loan rates and terms based on borrowers' risk profiles and creditworthiness. Financial institutions analyse credit scores, income stability, debt-to-income ratios, and employment history to assess risk. Borrowers with higher credit scores and lower risk profiles can qualify for lower interest rates and favourable loan terms. 

Advancements in data analytics have enhanced risk assessment accuracy, allowing lenders to make informed decisions and offer competitive pricing. 

Loan Market Trends - Customised Two-Wheeler Loans 

The future of motorcycle loans lies in personalised products tailored to borrowers' needs. Established banks and NBFCs are already customising offers with flexible loan terms, repayment options, and interest rates. Step-up EMIs, balloon payments, and variable interest rates are gaining popularity, reflecting bike loan trends in 2024.  

These options ensure borrowers can choose the most suitable repayment structure based on their financial circumstances, enhancing accessibility and aligning with evolving loan market trends.