A two-wheeler loan is the simplest way to finance your new bike or scooter as it allows you to repay the loan in affordable equated monthly installments (EMIs). Numerous banks and financial institutions offer bike loans with flexible repayment tenures and different loan amounts. But before you submit a loan application with the lender, you need to compare the interest rates different banks offer. India’s bike loan interest rates can range between 9% – 29% per annum, depending on the bank and your eligibility.
The interest rate determines your monthly payments and the total amount you will pay over the tenure of the loan. A lower interest rate yields low EMIs and vice versa. Here are five banks that can help you secure a two-wheeler loan at competitive interest rates.
1. IDFC FIRST Bank – Interest rate ranges between 9% to 22%
With IDFC FIRST Bank, you get a two-wheeler loan on simple terms. Open their mobile app or website, fill in the application form, meet the essential eligibility criteria, and obtain loan approval instantly. You can also calculate your EMIs with a customized two-wheeler loan calculator offered by IDFC FIRST Bank. Enter the amount, interest rate, and repayment tenure. The calculator will show you the estimated EMIs you must pay on your loan amount.
2. ICICI Bank – Interest rate starts at 9%
With an ICICI Bank two-wheeler loan, you can finance your bike with affordable interest rates starting at 9%. The entire loan process is digital with minimum documentation and a special processing fee. However, it is essential to note that the bike loan interest rate is based on factors including customer relationship, loan tenure, asset segment, etc.
3. Axis Bank – Interest rate starts at 10.80%
Axis Bank offers two-wheeler loans with interest rates ranging from 10.80% to 28.30%, depending upon various factors, including the applicant’s details, loan amount, and tenure. Axis also provides customized loan amounts where you can opt for a loan from ₹25,001 up to 100%* on-road funding per your need.
4. HDFC Bike Loan – The interest rate starts at 14.5%
HDFC Bank bike loan offers customers an exclusive 100% financing option on specific models and competitive interest rates. HDFC Bank offers additional benefits, such as low processing fees (2.5%) and flexible document charges (3%).
5. SBI – Interest rate ranges between 16.35% and 18.10%
At SBI, your two-wheeler loans come with an interest rate of between 16.35% and 18.10% per annum. The bank also offers flexible repayment options to its existing and new customers, making it easy to find a plan that suits your budget.
Avoid making an impulsive decision while taking a two-wheeler loan. Always compare the loan products by analyzing various factors such as interest rates, eligibility criteria, repayment tenure, processing fees, loan to value (LTV) ratio, etc. Also, check the bank’s website or contact them to know the loan amount you can get and how much down payment you must pay.