So, you’ve set your eyes on that dream bike.
Now the big question is:
Should you go for a vehicle loan or a personal loan?
Let’s compare both side-by-side and help you choose the most cost-effective and flexible option — powered by insights from Vizzve Finance.
🚘 What’s a Vehicle Loan?
A vehicle loan is a secured loan given specifically for buying a vehicle — in this case, a two-wheeler. The bike itself acts as collateral until you repay fully.
💰 What’s a Personal Loan?
A personal loan is unsecured, meaning no collateral is required. You can use the money for anything, including buying a bike, with complete flexibility.
Vehicle Loan vs. Personal Loan – Quick Comparison
| Feature | Vehicle Loan | Personal Loan |
|---|---|---|
| Security | Secured (bike as collateral) | Unsecured |
| Interest Rate | 8%–12% (lower) | 10%–16% (slightly higher) |
| Loan Tenure | 1–5 years | 1–6 years |
| Approval Time | Slower (requires dealer process) | Faster (via apps like Vizzve) |
| Purpose | Only for buying bike | Any purpose (bike + gear + insurance) |
| Documents | ID + Address + Income + Quotation from dealer | ID + Address + Income |
| Ownership | Bike is hypothecated to lender | You own the bike 100% |
| Down Payment | Often required | Optional |
So, Which Is Cheaper?
✅ Vehicle Loan:
Lower interest rates
Ideal if you want structured dealership financing
But limited to the bike only and bike is not fully yours until repayment
✅ Personal Loan:
Slightly higher rates
More freedom: Cover registration, insurance, accessories
Faster approval via Vizzve with zero collateral
For bikes under ₹1.5L, a personal loan from Vizzve is often the smarter choice – especially if you need cash fast and don't want dealer delays.
📲 Vizzve’s Advantage for Bike Buyers
✔️ Instant loans up to ₹2 Lakhs
✔️ EMI starts as low as ₹1,100/month
✔️ Paperless approval in under 24 hours
✔️ No dealership pressure
✔️ 100% digital process
🧠 Pro Tips from Vizzve
Want full ownership without restrictions? Go for personal loan
Want lower interest and don’t mind bike being hypothecated? Choose vehicle loan
For freelancers or students, personal loans are easier to get approved
❓FAQs
Q1: Can I use a personal loan to buy a second-hand bike?
Yes. Personal loans can be used for used bikes, vehicle loans usually can't.
Q2: Will Vizzve charge a down payment?
No. Personal loans from Vizzve are cash disbursement loans, no down payment required.
Q3: How long does loan approval take with Vizzve?
Most users get approved within 24 hours with valid PAN, Aadhaar, and bank statements.
Published on : 28th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed