Driving a two-wheeler makes commuting bit convenient and time-saving for daily commuters. However, buying a two-wheeler requires a sizable amount that may not be possible to arrange upfront payment for some of the people. You can avail two-wheeler loans that can be repaid in easy EMIs as per your choice and budget. You can apply for two wheeler loan online from the comfort of your home or office. Usually, you can avail two-wheeler loans at an interest rate of 9.05% onwards.
Two Wheeler Loan - Interest Rates
You can avail two-wheeler loans from various banks and NBFCs (Non-Banking Finance Companies). Depending on your financial profile and bank’s policy, you can negotiate the best interest rate for your two-wheeler loan. Below is the snapshot of indicative interest rates for two-wheeler loans in India:
| Banks and NBFCs | Interest Rate (p.a.) |
| HDFC Bank | 9.05% onwards |
| Punjab National Bank | 11.65% onwards |
| ICICI Bank | 11.57% onwards |
| State Bank of India | 9.25% onwards |
| Axis Bank | 15% onwards |
| Hero Fincorp | Depends on the applicant’s profile |
Note: The mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Two Wheeler Loan Eligibility Criteria
Although each bank and the financial institute has its own criteria for sanctioning two wheeler loan, below is the indicative list of eligibility criteria:
| Applicant’s Profile | Employed or self-employed |
| Minimum Age | 18 Years |
| Maximum Age | 65 Years |
| Minimum Loan Amount | Rs. 10,000 |
| Maximum Loan Amount | Rs. 25 Lakh, subject to the price of two-wheeler and other eligibility criteria |
| Maximum Repayment Tenure | 5 Years |
| Residential Status | Should be resident of the city for more than 1 year |
| Net monthly income | Rs. 6000 or more |
| Disbursement time | 6 hours to 2 days |
Fees & Charges for Two-Wheeler Loan
| Processing Fees | 1% to 3% of the loan amount. (Subject to the maximum amount as per lender’s policy) |
| Foreclosure Charges | Varies from 3% to 6% of the loan outstanding.
(Depends on the number of EMIs paid) |
| Overdue charges | 2.5% per month(May vary from bank to bank) |
| Check Bounce or EMI return charges | Rs.500 |
| Stamp Duty | At actual |
| NOC Charges | NIL for the first time, Rs.500 for duplicate NOC |
Documents Required for Two Wheeler Loan
| Mandatory Document | PAN Card |
| Identification Documents | Passport, Voter ID, Aadhar card, Driving License (Only one document) |
| Address Proof |
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| Income Proof |
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Features & Benefits of Two-Wheeler Loans
Lower Interest rate: Two wheelers loan are secured loan, as the asset is hypothecated to the bank or financial institute. Hence, you can avail the loan at a much lower interest rate than a personal loan.
Flexible Repayment: You can choose the repayment tenure from 1 year to 5 years. Hence, you have the choice to repay according to your income level.
Lower Income Criteria: Due to the option of a longer repayment period (up to five years) and lower interest rates, the persons with lower monthly income are also eligible to avail two-wheeler loans.
Minimum Down-payment: You can choose the minimum down-payment (as low as 5% of the vehicle value) and avail the loan for the rest of the amount.
Build Credit History: In most cases, the banks do not insist on credit scores to grant two-wheeler loans. Hence, without any credit history, you can avail the loan. As you repay the loan regularly, you can build a positive credit score for your future loan requirements.
Insurance Cover: Most two-wheeler loans come with insurance cover for the loan amount. Hence in any unfortunate event, your family members are not required to repay the loan.
Frequently Asked Questions (FAQs)
Q. How can I get a loan for a two-wheeler?
A. To get your motorcycle, bike or scooter financed, just apply for the loan online from the comfort of your home. Alternatively, you can visit a two-wheeler dealership and get a loan by submitting the required documents.
Q. How can I check my two wheeler loan status?
A. It can be checked online via internet banking service. Alternatively, you can also visit the nearest branch of the financial institution which will lend you the loan.
Q. Which is the best two-wheeler loan?
A. Normally, a loan that will charge you less interest rate for your bike/scooter financing so you pay less EMI in your loan tenure, is considered to be the best loan.
Q. What credit score or cibil score is needed for a two wheeler loan?
A. Most of the lenders usually consider a cibil score of 620 and above good for loans to lend for motorcycle, superbikes or scooter. However, if your credit score is below 620, you can still find lenders who may be charging a bit high-interest rate.
Q. How can I improve my cibil score before applying for two-wheeler loan?
A. There are many ways to improve your cibil score quickly, here are 10 ways to do that:
10 Ways to Improve Your CIBIL(Credit) Score
Q. Can I buy a bike without making a down payment?
A. Normally, you are required to pay a certain amount (ranging from 15% – 30% of the total vehicle price) as the down payment when you buy a two-wheeler, but there are few lenders, like HDFC, that gives zero down payment two-wheeler loan (depending upon some eligibility criteria conditions) where you are required to pay only the processing fees.
Q. Can a student get bike loan?
A. Yes, you can get your bike financed as a student if you meet certain eligibility criteria of the lenders.
Q. Can I prepay my two wheeler loan after I avail the same?
A. Usually, banks allow the prepayment after successful payment of 3-6 EMIs. Based on the number of EMIs paid by you, there is a small fee payable on outstanding amount.
Q. Can I apply for the second loan if my two wheeler loan is yet to be paid?
A. Usually, your loan eligibility depends on your income level. If your income is sufficient to honor 2 loans’ EMIs, the bank will grant you a second loan, even if your first loan is not fully paid yet.
Q. What is the maximum Loan-to-Value (LTV) ratio available?
A. The banks and financial institutions grant 85%-100% LTV ratio, subject to your income criteria to service the EMIs.
Q. What is the repayment period of the Two-Wheeler Loan?
A. The maximum pre-payment offered by banks and NBFCs is up to 5 years.