You’ve decided on the best bike you want to purchase, you’ve studied its features and variants thoroughly, you’ve picked the best color and even envisioned yourself riding your dream bike. Cut to reality, what about the finance? Every dream comes with a price. Luckily, these days, finance is the easiest part of any heavy-duty purchase you want to make, thanks to the instant loans with low interest rates provided by numerous banks. Your dream bike can be yours by just clicking a few buttons and providing certain documents. But is it good to buy a bike on EMI or is it more viable paying the full amount straight up? Read up on the pros and cons of both; the choice is yours to make.

Pros Of Buying A Bike On EMI

1. Cash Flow

Getting a bike loan is one of the easiest and fastest ways of acquiring finance to make a two-wheeler purchase. Almost every bank provides loans for two-wheelers as long as you meet the criteria. The advantage of having a bike on EMI is the division of the cost that happens over several months or years. You don’t have to pay the whole amount in one go, and since you’ve taken a loan, it leaves you with a bank balance that can be used to meet other expenses. If you want to avoid a drastic drop in your balance, the EMI option is best suited for you. This is especially beneficial for people with salaried incomes, since their salary can be split into paying the loan and paying the EMI.

2. Low Interest Rate

Nearly every bank provides very low interest rates when giving the EMI option on bike purchases. Some of the dealers and manufacturers even have tie-ups with banks in order to provide a loan with a lower-than-normal interest rate. This helps them generate more footfall and also works out well for the customers. Many banks also provide attractive offers for people purchasing bikes that are hard to resist.

By paying the nominal interest rate on the EMIs, you can easily be the owner of your very own mean beast. And since the payment is divided into several EMIs, it doesn’t put a dent in your pocket, despite incurring the interest rates. Considering the boom in people seeking the EMI option to purchase two-wheelers, there are certain banks that also provide full-finance options for the purchase. The bike can be yours with zero down payments.

Also see: Interest Rates for a Two-Wheeler Loan in India

3. Documentation

It has now become really easy to avail of a bank loan for a bike purchase. All you need is a few documents that show address proof and identity proof. It’s fairly hassle-free and the process is as smooth as your life would be after purchasing a bike on EMI.

Cons Of Buying A Bike On EMI

1. EMI Submissions

Yes, bank loans and EMI options provide you with the freedom of not paying the full amount in one go, but it also adds the tension of monthly installments. There will be monthly deductions from your bank account that will take place depending on the tenure you choose and that can lead to stress. For every installment, you’ll have to have a cover or else it’ll lead to trouble with the bank. Plus, with the monthly deductions, you may wind up having less cash flow for your expenses. This is why it becomes important to calculate your bike loan EMI and finances in advance.

2. Maintenance

In the excitement of buying a bike, don’t forget that the cost of a bike doesn’t end at its purchase. In fact, it is just the beginning. Your EMI option will not cover the bike maintenance costs which are bound to crop up within a few months of you buying the bike. Paying the EMI and the servicing charges may leave you with a lower bank balance than you initially thought.

Pros Of Buying A Bike On Full Payment

1. No Stress Of EMIs

By making a full payment at the time of purchase, you can consider yourself to be stress-free. You don’t have to worry about the next installment and having funds in the bank. The sudden drop in your balance will affect your funding for a month or two, but you will have the freedom of not being obliged to pay the bank in the coming months or years. Quite a few people prefer saving up and waiting a little before making any kind of purchase, in order to be free from EMIs. Of course, the maintenance cost is going to hound you for as long as you have the vehicle, EMI or not.

2. No Interest Rate Charged

If you’re purchasing a bike by paying the full amount and not on loan, you are not liable to pay any interest to any bank. You aren’t spending any more than what the bike actually costs. In fact, you may also wind up saving a certain amount if the dealer has any offers going on for those making full payments in one go.

Cons Of Buying A Bike On Full Payment

1. Liquidity Of Funds

Since you’re making the payment in one go, purchasing a bike without taking an EMI can leave you with a cash crunch. No matter what kind of bike you choose, it is a big investment to make and it can affect your monthly expenditure. You may suffer its consequences for months if the financial planning isn’t done appropriately, or if an unforeseen financial emergency suddenly comes up.

Also see: How to Buy an E-Bike on EMI?


After evaluating the pros and cons of both scenarios and understanding your financial status, it is totally up to you how you wish to fulfill your dream of owning a bike. Just ensure you make all the calculations well in advance and calculate your bike loan EMI as well. Don’t let anything come in between you and your dream, but don’t forget to make a wise decision on the way.