Bike Loan Interest Rates

Many banks and NBFCs in India offer the lowest bike loan interest rates. Individuals can, therefore, go through the current two-wheeler loan interest rates to get the best offer. The lowest bike loan interest rate can start from 6.2%. 

Given below are the lowest two-wheeler loan interest rates offered by different banks.

Here is the list of minimum and maximum loan amounts offered by different banks in India for two-wheeler vehicle loans.

The amount mentioned above can vary over time depending on the applicant's credit score and vehicle type. Therefore, it is advisable to contact the bank branch to get accurate information.

When an individual applies for a bike loan, the lender may give the choice of selecting between the variable and the fixed interest rate. The choice between fixed and variable rates is determined by the level of risk associated with each. 

• Fixed interest rates are usually much higher than variable rates but remain consistent even when market rates change. 
• Variable interest rates, on the other hand, fluctuate according to market conditions. Rates connected to the Marginal Cost of Funds-based Lending Rate (MCLR) fluctuate whenever the RBI changes the repo rate. As a result, the interest rate may increase or decrease over time. Nonetheless, variable interest rates are typically cheaper than fixed interest rates.

• Identification Proof: PAN Card, Aadhar Card, Voter I.D. card, Passport, and Driving Licence are all acceptable forms of identification. 
• Address Proof: Ration Card, Electricity Bill, Telephone Bill, Driving Licence, Passport, Voter I.D. Card and the Last 2 Months' Bank Statement are all acceptable forms of address proof. 
• Income Proof documents: Form 16, most recent salary slips, and income tax return documents. 
• Documents for Date of Birth Proof: Class 10 Marksheet, Passport, Birth Certificate, Voter I.D. Card. 

Applicants who meet the following requirements are eligible to apply for a two-wheeler loan:

• A candidate needs to be at least 18 years old while applying and must under the age of 65 at the end of the loan maturity.
• Salaried and self-employed individuals are both eligible.
• An individual who has a steady source of income and a decent credit score.
• He/she must have lived in the current city for at least a year.
• The borrower must be employed for at least one year.
• The applicant should not have a Cibil Score of below 700.

There are various attributes that affect the bike loan interest rate of all banks: 

• Credit Score: One of the essential criteria determining the two-wheeler loan interest rate is the credit score of the applicant. If the credit score is more than 700, the applicant can get lower interest rates on their loan amount. A good credit score indicates good repayment behaviour. Having a poor credit score can also result in getting the loan applicant rejected.
• Your Workplace: The interest rate can also be affected by your workplace or the organization for which you work. A recognised organisation or company may imply that you have stable employment and a stable income. As a result, this could also give reduced interest rates to the applicant.
• Existing Connection with the Lender: If an individual already have a relationship with the loan provider, they may get a lower interest rate. A positive relationship with a bank or lender can result in better loan offers.
• Your Job Description: Depending on whether you are self-employed or employed, lenders may offer various interest rates.
• Your age: Your age has a significant impact on your interest rate. For example, if you're approaching retirement age, your loan interest rates can get higher. This is because getting closer to retirement age normally entails having a decreased ability to repay a debt.
• Your Monthly Income: Certain banks and lenders have a minimum income requirement for loan approval. Therefore, if you have a lesser income than the minimum criteria, you may be offered a higher rate of interest.