Bike Loan Interest Rates

Many banks and Non-Banking Financial Companies (NBFCs) provide two wheeler loans, allowing people to fulfil their goals. Individuals planning to buy a two-wheeler but don't have enough money can apply for a Two Wheeler Loan or Bike Loan from any bank or NBFCs. Certain banks and lenders also offer 100% financing on the on-road pricing of two-wheelers or bikes.

Lowest Two Wheeler Loan Interest Rates 2024

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.

Bank Name Bike Loan Interest Rates Processing Fee
SBI 8.50% onwards 2% of loan amount + GST
SBI Easy Ride 11.90% onwards Contact the Bank
Bandhan Bank 16.50% to 22.5% 2% of loan amount + GST
HDFC Bank 14.5% onwards Up to 2.5% of the loan amount
ICICI Bank 9% to 28.00% 3.5 % of loan amount + GST (for Super Premium Vehicles)
4.75% of loan amount + GST (for Non-premium and Premium Vehicles)
Tata Capital 10.99% onwards Up to 4% of loan amount + GST
IDFC First Bank 8.50% to 26.00% Zero
Fullerton India 8% to 28% Up to 5% of the loan amount + applicable taxes
Bank of Baroda 13.65% onwards 2% of loan amount + GST
Bank of Maharashtra 8.60% onwards 0.25% of the loan amount + GST
Bajaj Auto Finance 17% to 35.00% Starts from 1% of the loan amount
TVS Credit Contact the NBFC for rates Contact the NBFC
Mahindra Finance Contact the NBFC for rates Contact the bank
Muthoot Capital 4.99% onwards Varies between 1% - 4% of the loan amount
Hero Fincorp 10.65% onwards Starts from 10.65% per annum
Home Credit 19.99% onwards Contact the bank
AU Bank Contact the SFB for rates Contact the bank

Two Wheeler Loan Amount 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.

Bank Name Minimum Loan Amount Maximum Loan Amount
SBI Rs. 20,000 Rs. 3 lakhs
SBI Easy Ride Rs. 20,000 Rs. 3 lakhs
Bandhan Bank Rs. 10,000 Rs. 5 lakhs
HDFC Bank As per the bank's terms and conditions Up to 100% of the price of the vehicle
ICICI Bank As per the bank's terms and conditions Up to 100% of the on-road price of the two-wheeler
Tata Capital Rs. 25,000 Rs. 5 lakhs
IDFC First Bank Contact the branch Contact the branch
Fullerton India Contact the branch Up to Rs. 30 lakhs
Bank of Baroda As per the bank's discretion Up to Rs. 10 lakhs
Bank of Maharashtra Contact the branch Up to Rs. 5 lakhs
Bajaj Auto Finance Rs. 10,000 Rs. 6 lakhs
TVS Credit Contact the NBFC Up to 95% of the on-road price of the vehicle
Mahindra Finance Rs. 1 lakh Rs. 25 lakhs
Muthoot Capital Rs. 20,000 Up to Rs. 3 lakhs
Hero Fincorp Rs.10,000 Rs. 1.5 lakhs
Home Credit Contact the branch Contact the branch
AU Bank Contact the branch Contact the branch

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.

Types of Bike Loan Interest Rates

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.

Documents Required for Bike/Two-Wheeler Loan

    • 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. 

Who Can Apply for the Two-Wheeler Loan?

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.

Factors Affecting Bike Loan Interest Rates

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.
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