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Compare Bike Loan Interest Rate
Compare Bike Loan Interest Rate
| Bank | Two Wheeler Loan Interest Rates* | Lowest EMI per Rs. Ten Thousand for Max Tenure |
|---|---|---|
| SBI | 12.65% | Rs. 335 for 3 years |
| HDFC Bank | 14.03% | Rs. 273 for 4 years |
| PNB | 10.70% | Rs. 216 for 5 years |
| Bajaj Auto Finance | 18.00% | Rs. 254 for 5 years |
| IndusInd Bank | 12.00% | Rs. 332 for 3 years |
| Allahabad Bank | 11.80% | Rs. 262 for 4 years |
| Andhra Bank | 10.35% | Rs. 214 for 5 years |
| Bank of India | 8.85% | Rs. 207 for 5 years |
| Union Bank of India | 11.55% | Rs. 330 for 3 years |
| United Bank of India | 11.00% | Rs. 217 for 5 years |
| Corporation Bank | 12.35% | Rs. 334 for 3 years |
| Indian Bank | 9.65% | Rs. 211 for 5 years |
| Karnataka Bank | 13.85% | Rs. 232 for 5 years |
| Jammu And Kashmir Bank | 9.65% | Rs. 211 for 5 years |
| Canara Bank | 13.55% | Rs. 340 for 3 years |
Bike Finance Eligibility
You may be eligible for 2 wheeler loan in India from one or more banks if you meet the following eligibility conditions:
Eligibility Criteria for Bike Loan
| Minimum and Maximum Age |
Note: However, many banks require minimum age of 18 years |
| Loan Amount |
Note: Loan amount depends upon the value of the two wheeler and the EMI you can pay |
| Net Monthly Income |
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| Employment Type |
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| Minimum Work Experience |
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| CIBIL Score for Two wheeler Loan |
Note: Most banks avoid giving loans if you have low credit score |
EMI for 2 wheeler Loan
2 wheeler Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced with each EMI. Two wheeler Loan EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
Auto Loan EMI depends upon loan amount, interest rate and loan tenure
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| Online Payment |
Interest rate - Higher interest rate on your loan leads to high amount of EMI- Loan tenure – EMI on bike loan reduces in case of high loan tenure
Comparison of Two wheeler Loan Interest Rates in India
- Processing fees – Most banks charges minimum processing fees of Nil to upto Rs.1,000. To get lowest fee, comparison of 2 wheeler loan rates, offers and cashback applying online through MyLoanCare.
- Insurance premium – Bike loans are secured loans, but it is advisable to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium.
- Prepayment and foreclosure – When you want to repay your loan partially before time, it is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to even upto 3%. So, check carefully if the low interest rate auto loan you are getting comes with high prepayment or foreclosure charges. Note that some auto loans cannot be repaid before time.
- Down payment – Banks offer auto loans either at 80% of on-road price or 100% of ex-showroom price. However, 80% of on-road is almost equivalent to 95% of ex-showroom price. You are advised to fund maximum as down payment as it reduces your burden of high monthly payments.
Do’s and Don’ts while taking 2 Wheeler Loan
To get best and lowest two wheeler loan interest rates online, read the do’s and don’ts mentioned below.
| Do’s | Don’ts |
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Checklist for Bike Loan
- Identity proof
- Residence address and ownership proof
- Income proof
- Bike quotation
- Photo identity proof
- Bank continuity proof
- Bank statement
- 1 passport size photograph
- Latest ITR
- CIBIL Score and report
Documents Required for Bike Finance
| Documents ID | Individuals | Firms, Partnerships |
|---|---|---|
| Signed Application Form | Required | |
| Identity Proof | PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card | |
| Certificate and Proof of Business Existence | PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI | |
| Address Proof | Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) | Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter |
| Age Proof | PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate | |
| Income Proof | Form 16, last 3 months salary slip, last 3 months bank account statement showing salary credit | Last 2 years ITR, last 3 months bank account statement |
| Two wheeler Quotation | Quotation of cost of two wheeler selected from the dealer | |
Frequently Asked Questions on Two wheeler Loan
Why do I need two wheeler loan?
Two wheeler loans are usually taken to buy a new bike or used bike. Auto loan rates are given at fixed or floating rate. If you have a low CIBIL score, then you should not apply in multiple banks for 2 wheeler loan as each rejection will drop your CIBIL score.
How can I apply for two wheeler loan?
You can get a two-wheeler loan either by visiting the Bank’s branch or by applying online to the Bank or NBFCs. Other than that, a two-wheeler loan can be applied from any online marketplace like MyLoanCare.in. This can make your loan process easy and also could help you grab the best deal.
What is the minimum and maximum tenure of two wheeler loan?
Auto loan is generally taken for a short period of time. Generally, bike loan tenure is between 2 years to 5 years.
What are the charges for two wheeler finance?
Apart from rate of interest, there are two types of charges being charged by the banks.
- Two wheeler loan processing fee: This is charged when you apply for the loan. The processing fee charged on 2 wheeler loan is upto Rs. 1,000 of the loan amount and could be reduced if you can bargain.
- Two wheeler loan preclosure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged may be upto 3% of the outstanding amount.
Auto loan CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest for two wheeler finance. Bad CIBIL Score will result in either loan at higher interest rate or rejection of the loan application.So, make all your payments on time and maintain your CIBIL in order to get best auto loan rates.
What is ex-showroom price and on road price?
Ex-showroom price is the price of the bike including excise duty but excluding local duties and statutory charges.
On road price is the price you pay for the two wheeler including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.
Do I need to open a bank account to service my 2 wheeler loan?On road price is the price you pay for the two wheeler including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.
Yes, you need to have at least one functional bank account in your name to get an auto loan. It is even better if you have an account with the same bank from which you would like to get an auto Loan.
What are the main factors that affect interest rate of two wheeler loan?
Two wheeler loan lowest interest rate depends upon factors like down payment, loan tenure, credit report and your net income. High income with good CIBIL and maximum down payment can lend you loan at low interest rate.
How can I prevent rejection of my loan application?
Banks or NBFCs give two wheeler finance to those borrowers about whom they are sure that he/her can repay the loan. You need to know few things if you don’t want your application to get rejected:
- Job stability for 2 wheeler loan is important. You need to be stable in your current job as too many job changes can impact negatively at the time of loan approval
- You should not be having too many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
- Don’t give you landline number for tele-verification if you know that nobody else is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.
Banks or lenders keep on adding these small things and reject your loan application.
What should I do if my auto loan application gets rejected by bank?
Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.
- In this case, if you have a spouse who is also working, you can add him/her as a co-applicant to boost the combined salary levels.
- Clear your old debts first so that your leverage levels come down.
- Balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.
The interest rate for a bike loan starts at 10.00%. The interest rates may vary across different Banks. Further, the interest factor is also dependent on the type of two-wheelers you wish to buy, the income of the applicant, age, and occupation.
How to finance a bike?
Opting for a bike loan is the easiest way to finance a bike. A variety of Banks and other lenders could provide you with funds to buy your dream bike. However, one needs to meet the essential eligibility criteria and documentation requirements.
Can a student get a bike loan?
A student can apply for a bike loan if he or she fulfills the basic eligibility criteria. An applicant must be a minimum of 21 years of age. However, the loan can be applied only with a co-applicant, who has a good CIBIL score and a fixed, reliable source of income.
How much can I pay as a down payment on a bike?
A down payment usually ranges from 15-30% of the two-wheeler value. However, it may vary across the lender. The amount of down payment made on the two-wheeler will decide the EMI of the bike loan. The bigger the down payment, the lower the EMI.
Why MyLoanCare???
Nowadays, almost all banks offer attractive schemes on Two Wheeler Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Two Wheeler Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits
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