Owning a bike in 2025 is not just about convenience—it’s about freedom, savings, and lifestyle. But what if your credit score is low? Many banks and NBFCs prefer borrowers with 750+ CIBIL score, and rejection can feel discouraging.
Here’s the good news: you can still get a bike loan with a low credit score. You may have to take a few extra steps, but lenders offer multiple solutions. This guide explains everything: eligibility, strategies, alternative lenders, and tips to improve your approval chances.
1. What is a Low Credit Score?
- In India, CIBIL scores range from 300–900.
- 750+ = Excellent, easy approvals.
- 650–749 = Average, may face scrutiny.
- Below 650 = Low, high rejection chances.
👉 If you’re below 650, lenders see you as high-risk. But that doesn’t mean your dream bike is out of reach.
2. Why Lenders Care About Credit Score
Credit score tells banks how responsible you are with loans and EMIs. A low score suggests:
- Missed EMIs or loan defaults in the past.
- Overuse of credit cards.
- Too many loan applications.
- Insufficient credit history.
For lenders, low score = higher risk = higher interest or rejection.
3. Can You Get a Bike Loan with a Low Credit Score?
✅ Yes, but with conditions. In 2025, lenders are more flexible thanks to:
- Digital lending platforms analyzing alternative data (utility bills, rent payments).
- EV loan subsidies, which reduce lender risk.
- Dealer-financier tie-ups offering zero-CIBIL-check loans.
So, while a low score makes things harder, it’s still possible.
4. Options for Low Credit Score Applicants
Here are the best ways to secure a two-wheeler loan even with bad credit:
A. Go for NBFCs & Fintechs
Banks may reject low scores, but NBFCs and fintech apps (like Bajaj Finserv, Muthoot Finance, Paytm, Ola Money) are more lenient.
- EMI-based approvals, not strict CIBIL checks.
- Higher interest (12–18%), but easier approvals.
B. Choose a Secured Loan
If you pledge collateral (like fixed deposit or another asset), lenders approve faster. For bike loans, the bike itself is collateral—so approval chances are higher compared to personal loans.
C. Pay a Higher Down Payment
If you cover 30–50% of the bike’s cost upfront, lenders feel safer. Smaller loan = lower risk = higher approval odds.
D. Apply with a Co-Applicant/Guarantor
If your spouse, sibling, or parent has a good credit score, adding them as a co-borrower increases approval chances.
E. Opt for Dealer Financing
Many bike dealers have direct tie-ups with NBFCs and fintechs. These loans are fast, require minimal paperwork, and often don’t check CIBIL scores strictly.
5. Example Case Study
Rahul wants to buy a bike worth ₹1,00,000, but his CIBIL score is 590.
Option 1: Bank Loan
- Rejected due to low credit score.
Option 2: NBFC Loan
- Loan approved at 15% interest.
- Down payment: ₹30,000
- Loan amount: ₹70,000
- EMI for 36 months = ₹2,421
- Total Interest Paid = ₹17,156
👉 Rahul pays a bit more in interest but still gets his bike.
6. Special Case: EV Bike Loans for Low CIBIL Borrowers
EV loans in 2025 are easier to get even with a weak score because:
- Government subsidies reduce loan amount.
- Lenders have special green finance programs with relaxed rules.
- Some fintechs approve EV loans without CIBIL checks.
👉 If your credit score is low, choosing an electric scooter might improve your loan approval chances.
7. Tips to Improve Loan Approval Chances
- Show stable income – Salary slips or business proof reassure lenders.
- Clear small debts – Paying off credit card dues can raise your score.
- Avoid multiple applications – Too many loan inquiries lower your score further.
- Maintain a good bank statement – Regular income and healthy balance help.
- Apply for smaller loan amounts – Start with a budget bike; upgrade later.
8. Pros & Cons of Getting a Loan with Low Credit Score
Pros:
✔ You can still buy your dream bike.
✔ Builds positive repayment history if EMIs are paid on time.
✔ Flexible options like co-applicants and secured loans.
Cons:
✘ Higher interest rates.
✘ Larger down payment required.
✘ Limited choices in lenders.
9. How to Improve Your Credit Score for Future Loans
Even if you get a loan now, you should work on improving your score:
- Pay EMIs and bills on time.
- Keep credit utilization below 30%.
- Don’t close old credit cards (they add history).
- Check CIBIL report for errors and fix them.
- Avoid unnecessary loan applications.
👉 Within 6–12 months, your score can improve by 50–100 points.
10. Final Verdict
A low credit score doesn’t mean the end of your bike loan dreams. In 2025, with digital lenders, EV subsidies, and flexible financing schemes, you can still ride home your dream bike.
Yes, you may pay a slightly higher interest rate or down payment, but if you repay on time, you’ll improve your credit score and open doors for better loans in the future.
Quick Takeaway
- CIBIL below 650 = tough, but not impossible.
- NBFCs, fintechs, and dealer loans are your best bet.
- EV loans are easier with subsidies.
- Always repay on time to improve future credit score.
🚀 Don’t let a low score hold you back—plan smart, borrow smart, and ride smarter in 2025.