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Two wheeler Loan Interest Rates - HDFC, SBI, ICICI Bank, All Banks

Last Updated 18th Oct 2017

Lowest Two wheeler Loan Interest Rates in India Oct 2017

  • Lowest auto loan interest rates starting @9.35%*
  • Compare and get the best two wheeler loan offers from banks
  • Apply auto loan online
  • Get maximum loan amount based upon on road price and ex - showroom price
  • Maximum loan tenure upto 5 years

Two wheeler Loan Interest Rates Comparison, Lowest EMI Oct 2017, Best rates

Bank Two Wheeler Loan Interest Rates* Lowest EMI per Rs. Ten Thousand for Max Tenure
SBI 12.65% - 17.90% Rs. 335 for 3 Years
HDFC Bank 14.03% - 27.53% Rs. 273 for 4 Years
PNB 10.20% - 13.20% Rs. 213 for 5 Years
IndusInd Bank 12.00% - 29.00% Rs. 332 for 3 Years
Allahabad Bank 11.80% - 11.80% Rs. 262 for 4 Years
Andhra Bank 10.45% - 10.70% Rs. 215 for 5 Years
Bank of India 9.35% - 9.35% Rs. 209 for 5 Years
Dena Bank 11.35% - 11.85% Rs. 219 for 5 Years
Union Bank of India 14.40% - 14.40% Rs. 344 for 3 Years
United Bank of India 11.00% - 11.50% Rs. 217 for 5 Years
Corporation Bank 12.35% - 12.35% Rs. 334 for 3 Years
Indian Bank 9.65% - 12.95% Rs. 211 for 5 Years
City Union Bank 14.50% - 14.50% Rs. 344 for 3 Years
Karnataka Bank 13.20% - 13.20% Rs. 229 for 5 Years
Tamilnad Mercantile Bank 15.80% - 15.80% Rs. 351 for 3 Years
Jammu And Kashmir Bank 9.95% - 10.45% Rs. 212 for 5 Years
Canara Bank 12.65% - 12.65% Rs. 226 for 5 Years

Eligibility Check

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
  • 21 Yrs. – 65 Yrs.

Note: However, many banks require minimum age of 18 years
Loan Amount
  • Upto Rs. 10 lakhs. Some banks give maximum loan upto Rs. 50 lakhs

Note: Loan amount depends upon the value of the two wheeler and the EMI you can pay
Net Monthly Income
  • Min. Rs. 18,000 per month
Employment Type
  • Salaried and Self Employed
  • Interest rates are typically in the range of 9.35% to 29.00% per annum
Minimum Work Experience
  • 1 year of total work experience
  • Business tenure should of 5 years & ITR required for at least 2 years (For Self Employed only)
CIBIL Score for Two wheeler Loan
  • 600 & more credit history

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

  • Loan amount – If you apply for a high loan amount, then your EMI for auto loan will be high
  • 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 Auto 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
  • Check best discount and offers – Always check current offers and 2 wheeler loan interest rates offered to employees of large reputed companies
  • Do not apply for loan amount more than what you are eligible for – Applying for an amount higher than your eligibility may lead to rejection of your loan application
  • Compare two wheeler rates based on loan amount – Some banks offer lowest interest rate for 2 wheeler loan at higher loan amount
  • Do not apply with multiple banks – Simultaneous loan applications gets recorded in your CIBIL report and can hurt your chances of getting a bike loan
  • Discount for tenures – Banks may offer lower rates on bike loan for certain tenure
  • Your salary bank may not offer the cheapest loan – Various banks keep offering attractive schemes to acquire premium customers. Hence, salary bank may not be the best option

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 Two wheeler Loan

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 apply for 2 wheeler loan in several ways. You can directly visit the bank branch and meet the sales person, contact a two wheeler finance agent or apply online at any bank or NBFC’s website. You can also compare auto loan best interest rates of all banks online at MyLoanCare and apply for 2 wheeler loan.

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.
Is CIBIL Score important?

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?

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.

Why MyLoanCare???

Nowadays, banks give various offers on Two Wheeler Loan to give the best rates to individuals. To get Two Wheeler Loan with lowest interest rate and lowest EMI, compare new rates and offers of all banks at MyLoanCare. You can do rates comparison, check your eligibility, apply online and get the cheapest rate on Two Wheeler Loan. MyLoanCare helps you throughout the loan process from the day you apply to the time you get complete disbursement. You can even track your loan status after getting registered with us. MyLoanCare make it easy for you to get hassle free Two Wheeler Loan with ultimate cashback and refer and earn benefits. So, apply for Two Wheeler Loan today and enjoy the benefits.

 Two wheeler Loan

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.