The Covid-19 pandemic has spurred the demand for having a personal mode of transport over public transport to avoid potential health risks because of the deadly virus.
A two wheeler helps us navigate through bumper-to-bumper traffic easily while saving a lot of time. Compared to a four wheeler, two wheelers are convenient to maintain and are more economical to manage. The Covid-19 pandemic has spurred the demand for having a personal mode of transport over public transport to avoid potential health risks because of the deadly virus.
If you are planning to take a two-wheeler loan, keep in mind a few important things. You should never go for a two-wheeler loan without comparing the offers available. Each lender or financial institution has its own set of terms and conditions. Therefore, to bag the best deal, it is important to compare the chosen lenders on eligibility, interest rates, processing fees, repayment tenure, loan to value (LTV) ratio and charges etc.
Banks generally finance up to 90 per cent of the value of the bike. The rest 10 per cent is the down payment that you will have to shell out. So, before applying for a loan, do your maths to know if you have the down payment money ready to pay. Also, while choosing a two-wheeler for yourself, do not go overboard with the budget. Go for an option that fits well within your budget, according to BankBazaar.
Besides this, your credit score will also play a great role in getting a loan approved or securing a loan at a lower interest rate. A score below 750 may result in rejection of your application, or settle for a loan at a higher rate of interest. You will also be required to furnish certain documents such as age and identity proof, income proofs and address proof etc. while applying for a loan.
You can also wait for the upcoming festive season to gain from additional discounts. Most lenders come up with attractive offers during the festive season such as no processing fees, lower rate of interest, zero down payment, etc.
If you are planning to take a two-wheeler loan, the table below lists over 20 leading banks that are currently offering some of the lowest interest rates on two-wheeler loans. Do note, we have only included the lowest advertised rates for each of the banks mentioned in the table below. The applicable interest rate may differ and would depend on your age, income, credit score and eligibility requirements of your lender.
The table also includes indicative EMIs for a two-wheeler loans amounting to Rs 1 lakh taken for three years for each of the banks.
Two-wheeler loan interest rates and indicative EMIs currently being offered by leading banks
Disclaimer: Interest rate on two-wheeler loans for all listed (BSE) public and private banks (except foreign and small finance banks) have been considered for data compilation. Banks for which data is not available on their website have not been considered. Data collected from respective bank’s websites on September 21, 2021. The lowest interest rate offered by the banks on two wheeler loans have been shown in the table, irrespective of the loan amount and tenure. Indicative EMIs have been calculated on the basis of interest rate mentioned in the table for a Rs 1 lakh loan with a tenure of 3 years (processing fee and other charges are assumed to be zero for EMI calculation). The information mentioned in the table is indicative and may vary depending on the bank’s T&C.*Under Mudra scheme. ^Rack interest rate. ^^Minimum interest charged on loan disbursed to individual during Q1 2021.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.