Interested in financial products
Processing

Features

nil*

Pricing

nil*

Documents Required

nil*

Processing Fee

3%

Max Tenure

3 yrs

Best Rate

10%

Processing Fee

15.50%

Max Tenure

NA

Best Rate

15.5%

Processing Fee

10.20

Max Tenure

NA

Best Rate

10.2%

Processing Fee

6.5%

Max Tenure

NA

Best Rate

6.5%

Processing Fee

10.50%

Max Tenure

NA

Best Rate

10.5%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

8.50%

Max Tenure

NA

Best Rate

8.5%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

10.50%

Max Tenure

NA

Best Rate

10.5%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

10.99%

Max Tenure

NA

Best Rate

10.99%

Processing Fee

8.4%

Max Tenure

NA

Best Rate

8.4%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

12.75%

Max Tenure

NA

Best Rate

12.75%

Processing Fee

10.05%

Max Tenure

NA

Best Rate

10.05%

Processing Fee

10.75%

Max Tenure

NA

Best Rate

10.75%

Processing Fee

10%

Max Tenure

NA

Best Rate

10%

Processing Fee

11%

Max Tenure

NA

Best Rate

11%

Processing Fee

10%

Max Tenure

NA

Best Rate

10%

Processing Fee

10%

Max Tenure

NA

Best Rate

10%

Processing Fee

12%

Max Tenure

NA

Best Rate

12%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

10.6%

Max Tenure

NA

Best Rate

10.6%

Processing Fee

15%

Max Tenure

NA

Best Rate

15%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

11%

Max Tenure

NA

Best Rate

11%

Processing Fee

11.65%

Max Tenure

NA

Best Rate

11.65%

Processing Fee

9.25%

Max Tenure

NA

Best Rate

9.25%

Processing Fee

12%

Max Tenure

NA

Best Rate

12%

Processing Fee

9.5%

Max Tenure

NA

Best Rate

9.35%

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Max Tenure

NA

Best Rate

N/H%

Processing Fee

8.5

Max Tenure

NA

Best Rate

8.5%

Processing Fee

9.75%

Max Tenure

NA

Best Rate

9.75%

Sorry! We couldn't find any offer matching this category.

What is a Two-Wheeler Loan?

A two-wheeler loan is a form of a secured loan that is given by a bank or an NBFC (Non-Banking Financial Company) to an individual to help him/her buy a bike or a scooter when he/she does not have enough funds to buy the same. This can help the individual with transportation to get through the city traffic with ease. Bikes and scooters are costly and so it is generally very hard for a person to pay the entire amount in one shot especially if one has other financial obligations for the month. So, a two-wheeler loan goes easy on the pocket as one can pay EMIs (Equated Monthly Instalments) on a monthly basis and repay the loan over a period of time.

Features and benefits of a Two-Wheeler Loan

  • Full financing of vehicle
  • Most banks and Non-Banking Financial Companies (NBFCs) finance up to 100% of the two-wheelers on-road price. In some cases, the registration and the insurance charges are also covered by the loan amount. This makes it very convenient for the customer as his savings do not get affected in one shot.

  • Flexible tenures
  • Two-wheeler loans generally have tenures that can extend up to 4 years. In some cases, tenures of up to 5 years is also possible. This lowers the cost of the EMIs that are paid by the individual, thereby making it affordable and repayable. The preferred tenure can be chosen by the customer based on financial needs and requirements.

  • Simple documentation
  • Most two-wheeler loans have very minimal documentation that needs to be done by the customer. ID proof, address proof and income proof are the only documents that are commonly asked for. This makes the process very easy and fast. This makes a two-wheeler loan very convenient to apply for a customer.

  • Speedy disbursal
  • Most lenders who provide two-wheeler loans ensure that the loan amount is in your bank account in 3 working days or sooner. Pre-approved loans are available for existing customers of the bank and these are disbursed even quicker.

  • Showroom and lender tie-ups
  • Most two-wheeler showrooms have tie-ups with certain banks for two-wheeler loans and these loans can be applied for from the showroom itself, thereby making it very easy for the customer to buy the vehicle.

Interest rates

Since a two-wheeler loan is a secured loan, the interest rates are generally low. The interest rate on a two-wheeler loan begin at just 9% and can go upwards depending on one’s credit profile, relationship with the bank and other factors.

Factors that affect interest rates for a Two-Wheeler Loan

  • Credit score:
  • If you have a good credit score that is above 750, then the interest rates for your two-wheeler loan will be low. A credit score is a three-digit number that ranges from 300 to 900. It acts as evidence for your creditworthiness to your lender. Lenders use your credit score to assess your reliability. So, if you have a low credit score, then your lender will consider you to be a risky customer and will increase the interest rate for the loan or reject your loan application. Always ensure that you check your credit score before applying for a two-wheeler loan.

  • Credit history:
  • If you have a long credit history that is good, then the interest rates from your lender for your two-wheeler loan will be lower than if you have a short credit history or a bad credit history. This is because your lender will view your past transactions with your past credit products to check your creditworthiness and your reliability. If you have a positive and long credit history, the banks will consider you to be reliable and will lend to you at lower interest rates. If you have a bad credit history, the interest rates will be higher as you will be viewed as a risky customer.

  • Income and job stability:
  • The higher your income, the lower the interest rate for the two-wheeler loan. This is because the lender considers you reliable and can judge that you can repay the loan without any monetary problems. Also, if you provide proof of regular income, then your interest rate will be lower as the lender can assess your potential to repay the loan without defaulting on payments. Also, a job with a reputed company that is listed with the bank can act as an added advantage to get a lower interest rate for the two-wheeler loan.

  • Relationship with lender:
  • If you have a good and healthy relationship with the lender you are borrowing from and are an existing customer with them, then the interest rates can be negotiated for and one can get a lower interest rate. This can help you lower the interest rates on your two-wheeler loan. Most lenders aim to please their customers and so they can lower the interest rates if you have a positive and long relationship with them.

Eligibility criteria for Two-Wheeler Loans

  • Must be a minimum of 18 to 21 years of age and a maximum of 60 years of age.
  • Must be a salaried employee or a self-employed individual
  • Must have a good credit score and a good credit history
  • Must have a regular monthly income
  • Must have a good relationship with the bank

This can change based on the bank/lender you are borrowing from. Do check your eligibility with the bank before applying.

Documents needed for Two-Wheeler Loans

  • ID proof (Aadhar card, Driving licence or Passport)
  • Address proof (Aadhar card, Driving licence, Passport, Voter’s ID or Electricity Bill)
  • Passport size photograph
  • Bank statement for about 6 months
  • Income proof (Pay slips)
  • PAN card
  • Form 16 (For self-employed individuals)
  • Income Tax Returns (For self-employed individuals)

These documents may vary slightly from lender to lender and so it is best to check the documents needed with the bank you are borrowing the two-wheeler loan from.

How to apply for a Two-Wheeler Loan

  • You can apply online by filling in the application form and turning in all the required documents.
  • You can apply in person by visiting the lender’s branch with all the needed documents and filling out the application form for the same.

Two-Wheeler Loan – FAQs

1. How much of the two-wheeler’s cost is funded by the lender?

Most banks and Non-Banking Financial Companies finance up to 100% of the two-wheelers on-road price. In some cases, the registration and the insurance charges are also covered by the loan amount.

2. What is the maximum tenure for a two-wheeler loan?

Two-wheeler loans have tenures that can extend up to 5 years.

3. Why are two-wheeler loans applied for by customers?

Two-wheelers are costly and so it is generally very hard for a person to pay the entire amount in one shot especially if one has other financial obligations for the month. So, a two-wheeler loan goes easy on the pocket as one can pay EMIs (Equated Monthly Instalments) on a monthly basis and repay the loan over a period of time.

4. What is the minimum and maximum age for applying for a two-wheeler loan?

The customer must be a minimum of 18 to 21 years of age and a maximum of 60 years of age.

5. What are the interest rates for a two-wheeler loan?

The interest rate on a two-wheeler loan begin at just 9% and go upwards depending on one’s credit profile, relationship with the bank and other factors.

News

HDFC Bank and Bajaj Auto team up for easy two-wheeler loans24 Jun 2020

Bajaj Auto’s tie up with HDFC Bank to offer retail financing solutions to customers. Under this tie up, Bajaj Auto customers can access HDFC Bank’s expertise and it’s hassle-free end-to-end digital services and processes. The bank caters to over 5 cr...

Read more

Bajaj Auto’s tie up with HDFC Bank to offer retail financing solutions to customers. Under this tie up, Bajaj Auto customers can access HDFC Bank’s expertise and it’s hassle-free end-to-end digital services and processes. The bank caters to over 5 crore customers. The tie up will offer multiple advantages to the customers that are on the lookout for purchasing motorcycles. The bank's pan India presence will help Bajaj Auto expand its customer base in India and will also help potential customers as well who may need financial support during the covid-19 crisis.

HDFC Bank and Bajaj Auto team up for easy two-wheeler loans24 Jun 2020

Bajaj Auto’s tie up with HDFC Bank to offer retail financing solutions to customers. Under this tie up, Bajaj Auto customers can access HDFC Bank’s expertise and it’s hassle-free end-to-end digital services and processes. The bank caters to over 5 cr...

Read more

Bajaj Auto’s tie up with HDFC Bank to offer retail financing solutions to customers. Under this tie up, Bajaj Auto customers can access HDFC Bank’s expertise and it’s hassle-free end-to-end digital services and processes. The bank caters to over 5 crore customers. The tie up will offer multiple advantages to the customers that are on the lookout for purchasing motorcycles. The bank's pan India presence will help Bajaj Auto expand its customer base in India and will also help potential customers as well who may need financial support during the covid-19 crisis.

Honda launches the first BS -VI compliant two wheeler in India12 Sep 2019

Honda Motors and Scooters India launched the first BS-6 compliant two wheeler in India. It is none other than its popular model Activa. The 125cc bike is said to be 13% fuel efficient than the existing versions that are compliant with BS-4 standards....

Read more

Honda Motors and Scooters India launched the first BS-6 compliant two wheeler in India. It is none other than its popular model Activa. The 125cc bike is said to be 13% fuel efficient than the existing versions that are compliant with BS-4 standards. In addition, the new bike possesses superior technology and industry first features. You could be a owner of this latest bike with a two wheeler loan specially catered to your credit score. Apply today!

Get ready to own the country's 1st BS-VI compliant 2 wheeler4 Jun 2019

Honda Motorcycle and Scooters India (HMSI) will be soon launching India's first BS-VI compliant two wheeler. BS relates to emission standards as instituted by the Govt of India to regulate the output of air pollutants. Keeping up with the trends of t...

Read more

Honda Motorcycle and Scooters India (HMSI) will be soon launching India's first BS-VI compliant two wheeler. BS relates to emission standards as instituted by the Govt of India to regulate the output of air pollutants. Keeping up with the trends of the market and buyer expectations, HMSI 's new launch will be equipped with a fuel injection system, electronic control unit, an O2 sensor, three-way catalytic converter, and an onboard diagnostic module. Bluetooth connectivity for better navigation is also expected to be an addition in BS-VI models. The model will be launched on 12 June 2019. Get yourself ready to own this latest model with a 2 Wheeler Loan from Credit Mantri

ICICI Bank launches Insta Loans for purchase of two-wheelers6 May 2019

After the launch of Insta car loans, ICICI Bank has gone ahead to launch the same facility for buyers of two-wheelers too. Under Insta Two-Wheeler loans, the bank aims to provide the facility of instant sanction for over 12 million pre-approved custo...

Read more

After the launch of Insta car loans, ICICI Bank has gone ahead to launch the same facility for buyers of two-wheelers too. Under Insta Two-Wheeler loans, the bank aims to provide the facility of instant sanction for over 12 million pre-approved customers. These customers will be able to get Instant Sanction for two wheeler loan up to Rs 2 lakhs with a tenure of 3 years. With this letter in hand, the customer can walk into the 2wheeler showroom of his choice and buy a two-wheeler without any wait. The loan will include 100% of the on-road price.

Customer Reviews

4 / 5 (764 Reviews)
10 Feb 2020

Good rate of interest

10 May 2019

good

10 May 2019

EXCELLENT

13 Feb 2019

Well and good

12 Feb 2019

Very nice

×Thank you! Your comment will be reviewed and posted shortly.

Write a review

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.