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Two wheeler Loan

Compare Bike Loan Interest Rate

Bank Two Wheeler Loan Interest Rates* Lowest EMI per Rs. Ten Thousand for Max Tenure
SBI 12.65% ₹ 335 for 3 years
HDFC Bank 14.03% ₹ 273 for 4 years
PNB 10.70% ₹ 216 for 5 years
Bajaj Auto Finance 18.00% ₹ 362 for 3 years
IndusInd Bank 12.00% ₹ 332 for 3 years
Allahabad Bank 11.80% ₹ 262 for 4 years
Andhra Bank 10.35% ₹ 214 for 5 years
Bank of India 7.75% ₹ 202 for 5 years
Union Bank of India 11.55% ₹ 330 for 3 years
United Bank of India 11.00% ₹ 217 for 5 years
Corporation Bank 12.35% ₹ 334 for 3 years
Indian Bank 9.65% ₹ 211 for 5 years
Karnataka Bank 13.85% ₹ 232 for 5 years
Jammu And Kashmir Bank 9.65% ₹ 211 for 5 years
Canara Bank 13.55% ₹ 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
  • 21 Yrs. – 65 Yrs.

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

Note: Loan amount depends upon the value of the two wheeler and the EMI you can pay
Net Monthly Income
  • Min. ₹ 18,000 per month
Employment Type
  • Salaried and Self Employed
  • Interest rates are typically in the range of 7.75% 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
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EMI for Two 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 workloans.
  • 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

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 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
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