A two wheeler loan is availed to purchase a two wheeler of one’s choice and is further repaid in equated monthly installments (EMIs). Two wheeler loans in India are available for both self-employed and salaried individuals with an interest rate starting from 8.65% per annum. Various banks and financial institutions offer bike loans in India and you must check them to find out the best offers available for you.
Features of Two Wheeler Loan
- A two wheeler loan can be used to buy the bike you want, including super bikes.
- A co-applicant or guarantor is required to avail a two wheeler loan.
- Loan repayment options include a wide range of options.
- Affordable EMIs are available to repay your loan.
- 100% financing is also available for the on-road price of two wheelers.
Comparison of Two Wheeler Loan
Various banks and financial institutions offer two wheeler loans in India at affordable interest rates. To avail a two wheeler loan, you need to consider various factors that include processing fees, interest rates, and EMIs. Below stated is a list of comparison of two wheeler loans offered by banks and financial institutions in India.
| Bank/NBFC | Loan Amount | Tenure | Interest Rate | Processing Fee |
|---|---|---|---|---|
| SBI Bank | Up to ₹3 Lakh | Up to 3 Years | 16.45% p.a. onwards | 2.0% of the loan amount |
| HDFC Bank | Financing of up to 100% of the value of your vehicle | Up to 4 Years | 14.50% p.a. onwards | 2.5% of the loan amount |
| PNB Bank | Up to ₹10 Lakh | Up to 5 Years | 9.05% p.a. onwards | 0.5% of the loan amount |
| Union Bank of India | Up to ₹10 Lakh | Up to 3 Years | 10.30% p.a. onwards | Contact the bank for more information |
| Axis Bank | Financing of up to 100% of the value of your vehicle | Up to 4 Years | 15.00% p.a. onwards | 2.5% of the loan amount |
Two Wheeler Loan EMI Calculator
Calculating the EMIs of the two wheeler loan is essential before availing as it gives you a true idea of the upcoming monthly payments. Through the two wheeler loan calculator provided by us, you will be able to find out your monthly EMIs by entering the loan amount, tenure, and interest rate. Our bike loan EMI calculator is attached below for your convenience.
Format: 12m, 36m, 3y, 7y
Monthly Payment (EMI):
₹85.61
Total EMIs:
12
Total Payments:
₹1,027.29
Total Interest:
₹27.29
Eligibility Criteria Two Wheeler Loan
It is essential to fulfill a certain eligibility criteria to avail a two wheeler loan in India. For your proper understanding, below mentioned are the aspects for two wheeler loan eligibility.
| Eligibility Requirements | For Self-employed | For Salaried |
| Age of applicant | Minimum- 21 years (at time of application)Maximum- 70 years (at the end of tenure) | Minimum- 21 years (at time of application)Maximum- 70 years (at the end of tenure) |
| Credit Score | 750 or above | 750 or above |
| Work Experience | Minimum 1 year | Minimum 1 year |
| Monthly Income | INR 6,000 | INR 7,000 |
| Loan Amount | 100% financing for the on-road price of the vehicle | 100% financing for the on-road price of the vehicle |
| Residential Stability | Staying at the current address for minimum period of 1 year | Staying at the current address for minimum period of 1 year |
*Note: The requirements may differ from lender to lender. Please go through the rules and regulations of the lender before availing.
Documents Required for Two Wheeler Loan
For proving your eligibility for a two wheeler loan, you need to submit a list of documents issued by the lender. The list may differ among various lenders but the common requirements are mentioned below.
- Identity proof: Voter ID proof/ Aadhar Card/ Passport/ Driving License/ PAN Card
- Address proof: Aadhar Card/ Passport/ Driving License/ Utility bills/ Ration Card
- Photo ID and Age proof: Driving License (mandatory)/ Passport/ PAN Card
- Income proof: Salary Slips, Bank Statements (last six months), IT Returns, Audited financial statements
- Form 16 (for self-employed)
*Note: The list of documents required for a two wheeler loan is subject to change as per the rules and regulations of the lenders.
Two Wheeler Loan Interest Rates and Fees
Two wheeler loan interest rate in India ranges from 8.65% per annum to 28.30% per annum, varying between different lenders. Interest rates for two wheeler loans are also prone to change as per RBI guidelines and policies, internal policies, and current market rates.
To avail the best and lowest interest rate, please go through all available offers provided by banks and financial institutes in India. There are also a number of charges and fees associated with the avail of a two wheeler loan, which is described below.
- Processing fees: Up to 2.5% of the loan amount
- Documentation charges: Up to 3% of the loan amount
- Legal and stamp duty charges: As per the applicable state laws
- PDD Collection Charges: Up to INR 450/-
- EMI due charges: As mentioned by the lender
- Pre-payment charges: As mentioned by the lender
A number of other charges and fees are also associated with a two wheeler loan. To know all charges, please go through the terms, conditions, and policies provided by the lender.