Two Wheeler Vehicle Loan – Interest Rates, EMI Calculator, Eligibility & More

Two Wheeler Bike Loan 1310 views

Two Wheeler Loan Interest Rate of Different Banks in India

BanksInterest Rate (in p.a.)Loan Amount Tenure Processing Fee
SBI11.65%-17.25% 85% of ex-showroom price of the vehicleUp to 5 Years1.50%-2% of the loan amount+GST
ICICI11%-26.27%Up to 100% on-road price of the vehicleUp to 4 Years1%-2.5% of the loan amount or Max of ₹2,500-5,00
HDFC8.85%-28.28%
(During the period of April’17 to June’17)
Up to 85% of the on- road price model1-4 Years3% of the loan amount
Bajaj Finance27%-30%As per the income & repayment capacityUp to 2 Years4% of the loan amount
PNB11.6%-13.1%90% of ex-showroom price, subject to a max limit of ₹60,000Up to 3 YearsWaived under Monsoon Bonanza Offer (01/06/2017-30/09/2017)
Bank of India9.88% (approx)As applicable by the bankUp to 5 Years1% of the loan amount, min ₹500 and Max ₹10,000+GST
Bank of Maharasthra9.5%Up to 85% of vehicle's cost, subject to a max of ₹1.25 LakhUp to 5 Years0.25% of the loan amount, min ₹500
Tata Capital Starting at 10% Up to 95% of the on-road price of the vehicle, costing less than ₹1.5 LakhUp to 5 YearsAs Per Company’s Norms

There are plenty of renowned banks and leading institutions are there that offer loans to individuals for multiple purposes. Of these, automobile and two wheeler loans are very popular as they help you to enjoy a comfortable lifestyle while on the other hand offering you a better mode of transport. In this post, we are going to talk about two wheeler loan or bike loan, interest rates, features and benefits, eligibility and a lot more. So, without wasting any time, let’s get started and discuss each of its parameter in the post below…

One such type of loan which is being offered by lenders to those who want to avail a two wheeler (bike, scooter, motorcycle, activa) but don’t have enough finance to afford the same. That is why the two wheeler loans have proven to be a boon to those consumers as through this way they can easily buy their favorite vehicle. When it comes to bike loans, they are far more affordable to a large segment of the population, hence are very popular. In India, there are several financial institutions and banks that offer two wheeler finance options at attractive interest rates and flexible tenures to eligible applicants, having good credit score.

Two Wheeler Bike Loan Eligibility

Now, eligibility is something which plays a crucial role in your overall loan journey. Though different banks and institutions have different eligibility criteria that you need to be aware while applying for a 2 wheeler loan. So, read the post further to know your bike loan eligibility.

  • An applicant should be at least 21 years old (at the time of application) and less than or equal to 65 years (at the end of the loan maturity)
  • Both Salaried, as well as self-employed individuals, are eligible
  • He/She should be residing in the city for at least 1 year
  • The borrower should be working for at least one year
  • The applicant should have a landline number either at the residence or at office
  • The individual should have a regular source of income with good credit score

Two Wheeler Loan Calculator

So, now that you have decided to avail a two wheeler loan, it is also important for you to know the EMIs of the same. What is the exact amount of monthly installment you need to pay to a lender each month, and much more can easily be known by you with the help of this smart device called an EMI Calculator. This tool gives you the exact calculations of your monthly installments in few seconds. Let’s understand more about the same with the help of an example below.

Suppose, Akash Chopra, a 30-year-old Sales Manager by profession is looking to avail a two wheeler loan of ₹1 Lakh. One lender has agreed to offer him the same loan amount at an interest rate of 11% per annum for a tenure of 5 years. But, before saying yes to the lender, Akash wants to know the exact amount of EMIs he needs to pay to the lender. He wants to know whether his monthly installments are pocket-friendly or not. Thus, for that, he used an EMI Calculator, and came out with an outcome. Just take a look at the table below to know about the monthly installments and interest outgo.

Below is a table showing EMIs, Interest Outgo and Total Amount Payable on a loan.

Loan Amount (in ₹)Interest Rate (in p.a.)Tenure (in Years)EMIs (in ₹)Interest Outgo (in ₹)Total Amount Payable (in ₹)
1,00,00011%18,8386,0581,06,058
1,00,00011%24,66111,8591,11,859
1,00,00011%33,27417,8591,17,859
1,00,00011%42,58524,0591,24,059
1,00,00011%52,17430,4551,30,455

Below is a table showing the Interest, Principal and Balance Amount of a loan.

Principal (₹)Interest (₹)Balance Amount (₹)
15,87510,21584,125
17,7138,37866,412
19,7626,32946,650
22,0494,04224,601
24,6011,4900

Documents Required to Apply for Two Wheeler Loan

When it comes to availing a loan, you should always be ready with documents so as to avoid the last minute hassle. In order to know the list of documents needed, kindly read the post below.

SalariedSelf employed Professionals
Application formApplication form
PhotographsPhotographs
Identity ProofIdentity Proof
Address ProofAddress Proof
Age proofAge proof
Bank statementBank statement
Signature verificationSignature verification
Income proofIncome proof
Signature VerificationITR of 2 previous financial years
Latest salary slip/form 16Business stability/ ownership proof
Employment Stability Proof

Apply for Two Wheeler Loan Online

You can easily apply online for a two wheeler loan by simply following an easy process. All you need to do is just visit to your favorite lender online, go to the specific page of two wheeler loan, enter all your personal as well as professional details and enter Apply Online. The moment you do so, you will be redirected towards a page, saying your application has been submitted successfully, and you will shortly get to know the status of your application. It is quick, easy and convenient to apply online for a bike loan as with just a click of a mouse, you can do all the required formalities within few minutes.

Two Wheeler Loan Compare

Before saying yes to a lender and in order to grab the best two wheeler deal, it is important that you should always compare the different lenders. Yes, comparision is the key! With the help of doing so, you would be able to figure out, which lender is giving you the best offers. Choosing the best lender would be helpful through this manner as you can compare different lenders on different parameter under one roof.