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Difference Between Personal Loan & Two wheeler Loan


A personal loan and a two-wheeler loan are granted to support individuals in improving or maintaining their finances. However, both these loans are very different from each other.

Here is a study of how a personal loan is different from a two-wheeler loan

  1. Purpose of the loan

A personal loan is usually taken for immediate requirements or emergencies. Individuals may seek a personal loan for diverse reasons such as a medical emergency, home improvement, planning a wedding or a vacation, or even to address illiquidity. On the other hand, a two-wheeler loan is taken specifically to fund the purchase of a two-wheeler vehicle.

  1. Finding the right lender

Banks and NBFCs can grant a two-wheeler loan. However, you can obtain a personal loan from banks, NBFCs, and online lenders.

  1. List of Necessary documents

You will need two documents if you apply for a two-wheeler and a personal loan. The list of documents necessary while applying for a two-wheeler loan is mentioned below

-ID proof

-Proof of age

-Address proof

-Bank statements for the last three months

-Salary slips for the last three months

The list of documents that you would be required to furnish in case of a personal loan is as follows:

-ID Proof

-Proof of age

-address proof

-Bank statements for the last six months

-Salary slips for the last six months

  1. Downpayment

While taking a personal loan, you do not have to make any down payment. You can seek the loan amount upfront and repay it according to your loan terms. However, a two-wheeler loan requires you to pay a specific downpayment, which mainly ranges from 10-20% of the on-road valuation of your vehicle.

For instance, Muthoot Capital offers a zero down payment facility to suit your needs while applying for a two-wheeler loan. The zero down payment two-wheeler loan comes with collateral, wherein individuals running short on instant liquidity or trying to maintain their savings can benefit.

  1. Loan Amount

The loan amount that can be granted against a two-wheeler loan differs from a personal loan. A personal loan may be taken to fund immediate liquidity requirements. The amount varies depending on the needs of the loan applicant. On the other hand, the loan amount in the case of a two-wheeler loan depends on the price of the vehicle that is being purchased.

You can use a two-wheeler loan calculator to understand your future monthly instalments before applying for a loan.

  1. Rate of Interest

The interest rate charged for a two-wheeler loan is lower than that for a personal loan. The interest rate charged on a two-wheeler loan may start from 9% onwards, while that of a personal loan may start from 11% onwards.

  1. Loan Repayment Tenure

A two-wheeler loan encompasses a more extensive loan repayment tenure than a personal loan. More specifically, the repayment tenure for a two-wheeler loan can go up to seven years, while that for a personal loan ranges from six months to five years.

  1. Loan Processing Time

As you apply for a two-wheeler loan, the loan would get processed much faster than applying for a personal loan. Usually, a two-wheeler loan gets approved instantly, while a personal loan takes approximately one to two days.


A personal loan’s basic features differ vastly from two-wheeler loans. Before applying for a loan, applicants must understand the differentiating features and related terms and conditions.

Author Bio

I am Zoya Arya, and I have been working as Content Writer at Rananjay Exports for past 2 years. My expertise lies in researching and writing both technical and fashion content. I have written multiple articles on Gemstone Jewelry like Opal jewelry and other stones over the past years and would love to explore more on the same in future. I hope my work keeps mesmerizing you and helps you in the future.

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