How to Get Approved for a Motorbike Loan


How to Get Approved for a Motorbike Loan

Nowadays people are turning to various forms of fun. They like to spend their leisure time relaxing and fulfilling their dreams. Some of those people always look for some kind of adrenaline rush and having a motorbike is one of the ways to achieve that need. Since the salaries are not that high, many people are not able to acquire a motorbike with one single payment. Many people choose to get a loan in order to purchase their desired vehicle. Getting a loan may be tiresome work and it is hard to get approved nowadays since the lenders have made loan requirements stricter. We shall go through several important facts you need to know in order to get approved for the loan with certainty.

Credit history

One of the most important things to focus on is your credit history. You should get a copy of it. Now you can see what things you should correct and improve your credit score. Best way to achieve this is to avoid maxing out credit cards and taking care of your bills in time. When you ensure a clear credit history, lender will consider you a low risk customer. This is a start point on getting approved with more ease when applying for a loan.

Down payment

The best option for you as a future motorbike owner would be to gather as much money as possible for a down payment. A lot of lender will want to finance your bike one hundred percent but keep in mind that motorbikes lose on their value over time much more than a car for example. So you don’t want to end up in a situation where the bike would cost you two thousand per month and its value is the same. With more money put in the down payment you monthly installments will be much lower.


Be prepared to get insurance for your vehicle. That is going to work well for you in order to get approved. This should be done especially if the motorbike is considered a high risk. That means if the motorbike is aerodynamically designed to achieve higher speeds. This step is something that many people overlook and it is vital to get approved by the financier for your loan.

Financing options

This is a very important part when getting a loan. You should carefully think through your every step, first of all it is advised that you should avoid financing with the dealership, their offer may seem very reasonable and attractive but they work for a certain percentage of that interest rate so that means that if you would borrow money from a bank the interest rate would probably be lower than dealership’s. There are some exceptions in cases when dealership wants to get rid of their motorbike and sell it under very reasonable conditions. If you are lucky enough you may find a very appealing offer from a dealer with lower interest rates than the ones in banks.

Think it through

It is vital to think carefully about the loan term and loan ratio. Debt to income ratio is requested by numerous lenders. Even though you may not prolong the repay time to five years, three years are more than enough to get everything paid off. Debt to income ratio should stay under fifty percent but it is desirable to stick around forty. This way, the lender will see that you are capable of taking care of your expenses with no problems. Not only will this get you approved, it will also make your interest rates lower.


In order to get a perfect motorbike loan for your budget you ought to visit around four to five banks. This way you can compare their offers and find the one that suits you the most. You should also verify if the lender you are using is a professional and consult with other customers if they have ever had any problems when working with them. This will let you know all the possible information you may need before starting cooperation with the bank.

After covering these basics about motorcycle loans we can conclude that necessity for a loan approval is a very nice credit score, a high debt to income value (around forty percent), confirmed insurance and completely inspected the motorbike. Upon achieving all these goals you will be able to ride the motorbike of your dreams with no worries.

Ivan Dimitrijevic is a senior consultant at Dejan SEO with a strong background in Social Media and Blogging. His favorite topics include Search Engine Optimization, Social Media Marketing, Web Design, WordPress, Photography and Art.

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