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Tata Capital Two Wheeler Loan

Tata Capital Two Wheeler Loan

4

Max Tenure

3 yrs

Best Rate

10%

Processing Fee

3%

Bandhan Bank Two-wheeler Loans

Bandhan Bank Two-wheeler Loans

4

Max Tenure

NA

Best Rate

15.5%

Processing Fee

15.50%

Oriental Bank Two-wheeler Loan

Oriental Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.2%

Processing Fee

10.20

Allahabad Bank Two-wheeler Loan

Allahabad Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

6.5%

Processing Fee

6.5%

Axis Bank Two-wheeler Loan

Axis Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.5%

Processing Fee

10.50%

Bajaj Finance Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Capital First Two-wheeler Loan

Capital First Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Central Bank of India Two-wheeler Loan

Central Bank of India Two-wheeler Loan

4

Max Tenure

NA

Best Rate

8.5%

Processing Fee

8.50%

Fullerton Bank Two-wheeler Loan

Fullerton Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

HDFC Bank Two-wheeler Loan

HDFC Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.5%

Processing Fee

10.50%

Hero Fincorp Two-wheeler Loan

Hero Fincorp Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

ICICI Bank Two-wheeler Loan

ICICI Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.99%

Processing Fee

10.99%

IndusInd Bank Two-wheeler Loan

IndusInd Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

nil*

Processing Fee

N/H

Indian Overseas Bank Two-wheeler Loan

Indian Overseas Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

8.4%

Processing Fee

8.4%

Indian Bank Two-wheeler Loan

Indian Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Jammu and Kashmir Bank Two-wheeler Loan

Jammu and Kashmir Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

12.75%

Processing Fee

12.75%

Karur Vysya Bank Two-wheeler Loan

Karur Vysya Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.05%

Processing Fee

10.05%

L & T Finance Two-wheeler Loan

L & T Finance Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.75%

Processing Fee

10.75%

Mahindra Finance Two-wheeler Loan

Mahindra Finance Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10%

Processing Fee

10%

Muthoot Finance Two-wheeler Loan

Muthoot Finance Two-wheeler Loan

4

Max Tenure

NA

Best Rate

11%

Processing Fee

11%

Punjab and Sind Bank Two-wheeler Loan

Punjab and Sind Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10%

Processing Fee

10%

Punjab National Bank Two-wheeler Loan

Punjab National Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10%

Processing Fee

10%

Saraswat Bank Two-wheeler Loan

Saraswat Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

12%

Processing Fee

12%

Shriram City Union Two-wheeler Loan

Shriram City Union Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

Syndicate Bank Two-wheeler Loan

Syndicate Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

10.6%

Processing Fee

10.6%

TVS Bank Two-wheeler Loan

TVS Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

15%

Processing Fee

15%

UCO Bank Two-wheeler Loan

UCO Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

United Bank of India Two-wheeler Loan

United Bank of India Two-wheeler Loan

4

Max Tenure

NA

Best Rate

11%

Processing Fee

11%

Vijaya Bank Two-wheeler Loan

Vijaya Bank Two-wheeler Loan

4

Max Tenure

NA

Best Rate

11.65%

Processing Fee

11.65%

State Bank of India Two-wheeler Loan

State Bank of India Two-wheeler Loan

4

Max Tenure

NA

Best Rate

9.25%

Processing Fee

9.25%

Bank of Baroda Two-wheeler Loans

Bank of Baroda Two-wheeler Loans

4

Max Tenure

NA

Best Rate

12%

Processing Fee

12%

Bank of India Two-wheeler Loans

Bank of India Two-wheeler Loans

4

Max Tenure

NA

Best Rate

9.35%

Processing Fee

9.5%

Bank of Maharashtra Two-wheeler Loans

Bank of Maharashtra Two-wheeler Loans

4

Max Tenure

NA

Best Rate

N/H

Processing Fee

N/H

City Union Bank Two-wheeler Loans

City Union Bank Two-wheeler Loans

4

Max Tenure

NA

Best Rate

N/H%

Processing Fee

N/H

Dena Bank Two-wheeler Loans

Dena Bank Two-wheeler Loans

4

Max Tenure

NA

Best Rate

8.5%

Processing Fee

8.5

Tamilnad Mercantile Bank Two-wheeler Loans

Tamilnad Mercantile Bank Two-wheeler Loans

4

Max Tenure

NA

Best Rate

9.75%

Processing Fee

9.75%

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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?

The customers can get up to INR 10 Lakhs for the purchase of a new vehicle.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.

6. 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.

7. How much loan can I get for a two-wheeler?

The answer to this question depends upon the lender of the two-wheeler loan. Most of the lenders will finance up to 80-90% of the loan but, there are options wherein 100% financing is available for the borrower.

8. Which interest rate should be chosen? A floating rate or a fixed rate?

Banks offer loans on floating interest rates as well as fixed interest rates. For floating interest rates, the interest rates change according to the market and the fixed rate remains the same throughout the loan tenure. The floating rates are lower than the fixed rates but have risks associated with them.

9. Is collateral required for availing of a two-wheeler loan?

No, collateral is not required for availing of a two-wheeler loan as the vehicle acts as collateral in this case. This is also called hypothecation.

10. What happens if the loan is not paid on time?

The bank or the lending authority may repossess your vehicle and may not allow you to use the vehicle any longer.

11. Can a minor student take a loan for a two-wheeler?

Yes, a minor student can take a loan for a two-wheeler if the co-applicant is a major or any of the parents.

12. How to calculate EMI for a two-wheeler loan?

Loan EMI calculators can be used to determine the exact amount of EMI to be paid for a two-wheeler loan.

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

The interest rates for a two-wheeler loan start from 9% per annum and go up to 16% per annum.

14. What is the credit score required to avail of a two-wheeler loan?

A credit score greater than 700 is preferred by the lenders to give a two-wheeler loan.

15. What is the minimum salary requirement for a two-wheeler loan?

The minimum salary requirement for an individual is Rs. 7000 per month for a two-wheeler loan.

Latest & Update Two Wheeler Loan News

Kinectic Green Energy collaborates with Cholamandalam Investment for EV financing. 7 Jul 2022

The electric vehicle manufacturer Kinectic Green Energy has partnered with the Cholamandalam Investment and Finance Company to offer financing solutions for its EV customers. Both companies have signed an initial agreement to provide finance to custo...

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The electric vehicle manufacturer Kinectic Green Energy has partnered with the Cholamandalam Investment and Finance Company to offer financing solutions for its EV customers. Both companies have signed an initial agreement to provide finance to customers looking for electric vehicles. The collaboration aims to make electric vehicles more reasonable for people who are price conscious by offering attractive financing solutions & catering to newer markets with Chola's pan-India presence, said the EV company. Also, the partnership will allow dealers to offer easy and inexpensive financing solutions to EV customers.

The Ujjivan Small Finance Bank partners with the Hero MotoCorp to offer Two-wheeler Finance2 Mar 2022

The Bangalore-based Small finance bank, Ujjivam SFB has collaborated with the world’s largest bike producer, Hero MotoCorp to provide two-wheeler finance. This partnership will strengthen the two-wheeler market penetration and enable the mid-class pe...

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The Bangalore-based Small finance bank, Ujjivam SFB has collaborated with the world’s largest bike producer, Hero MotoCorp to provide two-wheeler finance. This partnership will strengthen the two-wheeler market penetration and enable the mid-class people to get financial assistance to purchase two-wheeler vehicles. After checking the credit profile of the consumer the bank provides loan approval. This tie-up will enable the urban, semi-urban, and rural consumers to own Hero-MotoCorp without any financial hindrance.

Two-Wheeler Loans Now Available on Federal Bank Debit Cards25 Sep 2020

Happy news for Federal Bank debit cardholders. The bank recently announced that debit cardholders can book a two-wheeler at select showrooms of Honda Motorcycle, Hero MotoCorp and TVS Motor by just paying Rs. 1. The interest rate charged for two-whee...

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Happy news for Federal Bank debit cardholders. The bank recently announced that debit cardholders can book a two-wheeler at select showrooms of Honda Motorcycle, Hero MotoCorp and TVS Motor by just paying Rs. 1. The interest rate charged for two-wheeler loans on debit cards is 17% and borrowers can repay the loan over 3/6/9/12 months. Unlike traditional two-wheeler loans, vehicles purchased on debit card EMI are not hypothecated by the bank. Customers can check if their eligible by giving a missed call to 7812900900 or sending an SMS DC EMI to 5676762.

Yamaha Motor India announces Reduction on Bike Loan EMIs for Frontline COVID-19 Warriors12 Jul 2020

Yamaha Motor India (YMI) group of companies on Tuesday announced a special scheme for frontline Covid-19 workers. Through this scheme, the EMI on two-wheeler loans is reduced by 50% for the first three months. The scheme can be availed of while purch...

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Yamaha Motor India (YMI) group of companies on Tuesday announced a special scheme for frontline Covid-19 workers. Through this scheme, the EMI on two-wheeler loans is reduced by 50% for the first three months. The scheme can be availed of while purchasing new Yamaha two-wheelers at all authorized dealerships of the company in India. In May, the company's permanent employees and a few trainees at the three Yamaha plants located at Kanchipuram (Tamil Nadu), Surajpur (Uttar Pradesh) and Fari Faridabad (Haryana), and employees at other offices donated funds worth Rs. 61.50 lakhs from their April pay towards the Govt to help fight the battle against COVID 19.

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.

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