The Motorist Guide to getting a motorbike loan in Singapore

Just like buying a car, paying the full amount for a motorbike may not be the best option. You could take up a bike loan instead.

Motorbike loans, like car loans, are meant to help you pay for your motorcycle by borrowing money from a lender, usually a large sum of money. You will then have to pay back the loan in fixed instalments throughout your loan tenure.

At Motorist, we are inclusive, so for current motorbike owners who need to renew your motorbike COE, we got you.

The usual length of motorbike loans ranges between 36 to 60 months depending on your agreement with the lender. You can also check the loan tenure and other pertinent information by using a motorbike loan calculator.

What is a motorbike loan calculator?

A loan calculator allows you to check if you can afford a motorbike based on your current financial situation. You will be able to adjust the loan duration, monthly instalment amount, and even see the amount payable with interest added. You can use Motorist's loan calculator here!

Do note that the amount provided when you use the motorbike loan calculator is an estimate, as there are other factors that might affect your loan amount. For example, your bank will take into account your credit score and eligibility before approving your loan.

What are the types of loans for motorbikes?

Traditional motorbike loan

Motorbike loans are provided by specific banks, meaning you have to find them because such loans are not common. Why? Because financial institutions are not inclined to approve auto loans for motorbikes.

This is because of the high risk of injury, even death, that comes with riding a motorbike. Should a bad accident happen to the motorbiker, lenders are afraid that he or she will default on their loans, which in turn will turn into bad debts.

Personal loan

If you cannot get a motorbike loan, what’s your next option? Well, that would be to take a personal loan from a bank. Personal loans can be used for almost anything. The application process for the loan takes a few days and will require proper documentation.

Your bank will also run a credit check to determine how reliable you are in paying the money back. As long as you have a decent credit score, securing a competitive interest rate from a bank is likely. You should do your homework to find out which bank provides the best interest rate.

What other options do I have to get a motorbike loan?

In-house financing from motorcycle dealerships

If you were to purchase motorbike (new or used) from a dealer, they might offer their in-house financing options. The salesperson will probably entice you with competitive interest rates, but in-house financing by a dealership is usually more expensive than what a bank can do.

On the other hand, the dealership could give more incentives. The rule of thumb is to compare the prices you get from other options before agreeing to anything, because you may never know if there may be additional fees in the loan contract.

If you're looking to renew your bike's COE, Motorist Financial Services can provide in-house loans to assist bike owners with the cost of your COE renewal. 

P2P lending

This option is suitable for those who do not have a credit card nor a bank account to apply for a traditional loan. Peer to peer (P2P) lending is done through sites that connect individuals who need to borrow money to investors who provide unsecured loans.

Note that people are regulating this form of borrowing because it takes business away from formal financial institutions like banks. It is good to keep in mind that this is also a possible alternative for borrowers.

What to avoid when purchasing your motorbike?

If you do not have sufficient financial resources, avoid using your credit card to make the purchase or downpayment. Even if you skip the loan process and credit check, you would still have to pay your credit card bill.

Do not miss any of the bills, because credit card issuers charge high interest rates and penalties for late payments. Ignoring a credit card payment after you maxed out your credit card for a motorbike will lead to a downward spiral. The repercussions would eventually cause your credit score to drop as well.

Also, never make the mistake of using your house as collateral for the motorbike loan. Risking your own home for a two-wheeler or any other vehicle is the worst trade of all time. Consider future paychecks, stocks, or other personal investments as collateral instead.

Lastly, taking up a motorbike loan is rather complex, and it involves a lot of careful planning and understanding of your financial situation. Always buy within your means, and if you cannot afford a motorbike at the moment, despite it being convenient for you or a lifelong dream to own one, do save up what you need before signing on the dotted line.

It’s better to do so than get caught up with late payments on a motorbike loan should you take one. We hope this Motorist Guide helps you make an informed decision and gives you better insight into motorbike financing options.

Motorist is the first platform in Singapore that allows buyers to take up a full loan to purchase a motorcycle. We will settle the paperwork for you, provided you have a POSB or OCBC credit card.

To learn more about our in-house motorcycle loan, click here!

Read More: Letter Template for Carry On Instalment (COI): Subletting of Motorcycles

Download the new Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage LTA and vehicle matters.

Did you know we have a Motorist Telegram Channel? Created exclusively for drivers and car owners in Singapore, you can get instant info about our latest promotions, articles, tips & hacks, or simply chat with the Motorist Team and fellow drivers.