Two Wheeler Loan

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

Two Wheeler Loan Eligibility Criteria

Fees & Charges for Two-Wheeler Loan

Documents Required for Two Wheeler Loan

Features & Benefits of Two-Wheeler Loans

Frequently Asked Questions (FAQs)

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

• If identification documents bear the current residential address, no separate document is required.

• In case of a change in address, latest electricity bill, gas bill or water bill, rental agreement or property document is admissible.

Income Proof

• Last 3 months’ pay-slip

• Last 6 months’ bank statement

• Last 3 years’ income tax statement (waived off in certain cases)

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.