If you’re planning to buy a new motorbike or a scooter but falling short of funds, you can consider taking a loan to finance it, especially when they are available at competitive interest rates.
At a time when the coronavirus pandemic is far from over and social distancing norms are still in place, many argue it’s safer to travel in personal modes of transport instead of public transportation to avoid getting infected from the deadly virus during daily commutes. In doing so, it’s usually more economical to buy and maintain a two-wheeler vehicle instead of a car.
Two-wheelers also allow us to wiggle through bumper-to-bumper traffic and reach our destination much faster than a car. That being said, if you’re planning to buy a new motorbike or a scooter but falling short of funds, you can consider taking a loan to finance it, especially when they are available at competitive interest rates.
However, before applying for a two-wheeler loan, here are a few things you should keep in mind. Firstly, you may want to compare your offers from different lenders to find a deal that best meets your requirements. You can compare applicable interest rates, processing fees, prepayment charges, etc. while considering the ease of loan processing too. You can also check whether you’re eligible for any pre-approved loan offer from your existing bank for faster loan disbursal, according to BankBazaar.
While the document requirements too could vary from lender to lender, they are usually age and identity proof, income proofs and address proof; you’ll be well-advised to get complete clarity on these and arrange for the required documents in advance to accelerate the process.
Lastly, do not over-borrow just because you’re eligible for a higher loan amount, and evaluate the affordability of the EMIs before signing up for a loan.
In a bid to help you make informed decisions, here is a list of over 20 top banks — including SBI, HDFC Bank, ICICI Bank, PNB and Axis Bank — 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, which might involve fulfilment of additional eligibility requirements.
We have also provided indicative EMIs for a two-wheeler loans amounting to Rs 1 lakh taken for three years for each of the banks. Finally, keep in mind that the interest rate applicable to you would be determined based on your age, income, credit score, loan amount or any other terms and conditions of your chosen lender, and could be higher than the rates mentioned below.
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 10 August 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.