Two Wheeler Loan Interest Rates: If you’re looking to purchase a two-wheeler in 2023, you’ll likely need to take out a loan to finance your purchase. However, choosing the right lender can be challenging, as there is a multitude of options available in the market, each with its own interest rates, loan amounts, and processing fees.
To help you navigate this complicated landscape, we’ve compiled a comprehensive guide to two-wheeler loan interest rates in 2023. In this article, we’ll compare the interest rates and processing fees charged by lenders in India, along with their respective tenures. So, let’s get started.
Two Wheeler Loan Interest Rates 2023
In India, two-wheelers are the most popular mode of transportation due to their affordability and convenience. However, not everyone can afford to purchase a two-wheeler outright, which is where two-wheeler loans come in.
Two-wheeler loans are a type of secured loan that allows you to purchase a two-wheeler without paying the full amount upfront. Instead, you can borrow money from a lender and pay it back in installments over a period of time.
State Bank of India
If you’re in the market for a two-wheeler loan, one of the options you may be considering is State Bank of India (SBI). SBI offers a range of two-wheeler loans with interest rates ranging from 17.75% to 19.50% p.a. The loan amount offered by SBI ranges from Rs.20,000 to Rs.25 lakh, with a processing fee of 2.00% of the loan amount + GST (minimum of Rs.1,000).
HDFC Bank
HDFC Bank is another lender you may want to consider for your two-wheeler loan needs. HDFC Bank offers loans with interest rates starting from 14.50% p.a. However, the loan amount and processing fee details are not provided on their website. You can contact the bank for more information on their loan offerings.
Also, Read – List of Popular 10 Indian Banks/HFCs Offering the Best Home Loan Rates
Punjab National Bank
Punjab National Bank (PNB) is another lender you can consider for your two-wheeler loan. PNB offers loans with interest rates starting from 11.15% p.a. However, the loan amount and processing fee details are not provided on their website. PNB charges a processing fee of 0.5% of the loan amount subject to Rs.500 to Rs.1,000.
Union Bank of India
Union Bank of India offers two-wheeler loans with interest rates starting from 12.40% p.a. The maximum loan amount offered by the bank is up to Rs.10 lakh, with processing fee details not provided on their website. You can contact the bank for more information on their loan offerings.
Axis Bank
Axis Bank is another lender you can consider for your two-wheeler loan needs. Axis Bank offers loans with interest rates starting from 11.00% p.a. The minimum loan amount offered by the bank is Rs.25,001, with a processing fee of 2.5% of the loan amount.
Canara Bank
Canara Bank is another option you can consider for your two-wheeler loan needs. Canara Bank offers loans with interest rates starting from 11.35% p.a. However, the loan amount details are not provided on their website. Canara Bank does not charge a processing fee for their two-wheeler loans.
Also Read – Top 15 Car Loan Interest Rates
ICICI Bank
ICICI Bank is another lender you can consider for your two-wheeler loan needs. ICICI Bank offers loans with interest rates starting from 9.50% p.a. However, the processing fee can go up to 4.75% of the loan amount + GST. You can contact the bank for more information on their loan offerings.
IDFC First Bank
IDFC First Bank is another lender you can consider for your two-wheeler loan needs. IDFC First Bank offers loans with interest rates starting from 9.99% p.a. The processing fee charged by the bank is 5% of the loan amount. You can contact the bank for more information on their loan offerings.
Bank of Baroda
Bank of Baroda is another lender you can consider for your two-wheeler loan needs. Bank of Baroda offers loans with interest rates starting from 13.65% p.a. The minimum loan amount offered by the bank is Rs.10 lakh, with a processing fee of 2% of the loan amount.
Karnataka Bank
Karnataka Bank is another lender you can consider for your two-wheeler loan needs. Karnataka Bank offers loans with interest rates starting from 14.12% p.a. The maximum loan amount offered by the bank is Rs.2 lakh.
Comparison of Two-Wheeler Loan Interest Rates and Processing Fees in India
| Lender | Interest Rate | Loan Amount | Processing Fee | Prepayment Charges | Maximum Tenure | Minimum Income | Collateral Required | Additional Benefits |
|---|---|---|---|---|---|---|---|---|
| State Bank of India | 17.75% to 19.50% p.a. | Rs.20,000 to Rs.25 lakh | 2.00% of the loan amount + GST (minimum of Rs.1,000) | Nil | 36 months | Rs.20,000 per month | Yes (in the form of hypothecation of the vehicle) | Interest concession for women, no margin on loans up to Rs.1 lakh |
| HDFC Bank | 14.50% p.a. onwards | Contact the bank | 2.5% of the loan amount | Nil | Up to 36 months | Rs.7,500 per month | Yes (in the form of hypothecation of the vehicle) | Online account management, flexible repayment options |
| Punjab National Bank | 11.15% p.a. onwards | Contact the bank | 0.5% of the loan amount subject to Rs.500 to Rs.1,000 | Nil | Up to 60 months | Rs.20,000 per month | Yes (in the form of hypothecation of the vehicle) | Nil |
| Union Bank of India | 12.40% p.a. onwards | Up to Rs.10 lakh | Contact the bank | Nil | 60 months | Rs.1.2 lakh per annum | Yes (in the form of hypothecation of the vehicle) | Nil |
| Axis Bank | 11.00% p.a. onwards | Rs.25,001 onwards | 2.5% of the loan amount | 5% of the principal outstanding | Up to 36 months | Rs.15,000 per month | Yes (in the form of hypothecation of the vehicle) | Nil |
| Canara Bank | 11.35% p.a. onwards | Contact the bank | Nil | Nil | Up to 36 months | Rs.3 lakh per annum | Yes (in the form of hypothecation of the vehicle) | Nil |
| ICICI Bank | 9.50% p.a. onwards | Contact the bank | Up to 4.75% of the loan amount + GST | Nil | Up to 36 months | Rs.20,000 per month | Yes (in the form of hypothecation of the vehicle) | Nil |
| IDFC First Bank | 9.99% p.a. onwards | Contact the bank | 5% of the loan amount | Nil | Up to 48 months | Rs.1.5 lakh per annum | Yes (in the form of hypothecation of the vehicle) | Nil |
| Bank of Baroda | 13.65% p.a. onwards | Rs.10 lakh | 2% of the loan amount | Nil | Up to 60 months | Rs.1.44 lakh per annum | Yes (in the form of hypothecation of the vehicle) | Nil |
| Karnataka Bank | 14.12 p.a. onwards | Rs.2 lakh | Contact the bank | Nil | Up to 60 months | Rs.1 lakh per annum | Yes (in the form of hypothecation of the vehicle) | Nil |
Why Consider a Two-Wheeler Loan?
There are several reasons why you might want to consider taking out a two-wheeler loan, including:
- Affordability: Two-wheeler loans allow you to purchase a two-wheeler without paying the full amount upfront, making it more affordable for you.
- Convenience: Two-wheelers are a convenient mode of transportation, allowing you to easily navigate through traffic and reach your destination quickly.
- Credit Score Building: If you make timely payments on your two-wheeler loan, it can help you build your credit score, making it easier for you to get loans in the future.
Factors to Consider When Choosing a Lender
Before you apply for a two-wheeler loan, there are several factors that you need to consider to make an informed decision.
Eligibility Criteria
Each lender has different eligibility criteria for two-wheeler loans, such as age, income, and employment status. Before you apply, make sure you meet the eligibility criteria set by the lender.
Credit Score
Your credit score is a critical factor that lenders use to evaluate your creditworthiness. A higher credit score will increase your chances of getting approved for a loan and may also help you get a better interest rate.
Loan Amount
The loan amount you can borrow will depend on various factors, such as your income and credit score. It’s important to determine the loan amount you need before you apply.
Repayment Tenure
The repayment tenure is the period in which you have to repay the loan. Longer repayment tenures usually result in lower monthly payments but may also result in higher interest rates.
Conclusion
In conclusion, a two-wheeler loan can help you purchase your dream bike without straining your finances. However, it is crucial to compare the interest rates and processing fees charged by different lenders before finalizing a loan. Additionally, you should also consider other factors such as loan tenure, loan amount, and eligibility criteria before choosing a lender. By doing so, you can ensure that you get the best deal on your two-wheeler loan and enjoy a hassle-free bike-buying experience.
FAQs
What is the minimum and maximum loan tenure for two-wheeler loans?
The loan tenure can range from 12 months to 5 years, depending on the lender and the loan amount.
Is it mandatory to have a guarantor for a two-wheeler loan?
No, it is not mandatory to have a guarantor for a two-wheeler loan. However, some lenders may require a guarantor for certain loan amounts or if the applicant’s credit score is low.
Can I prepay my two-wheeler loan?
Yes, most lenders allow prepayment of two-wheeler loans. However, some lenders may charge a prepayment penalty fee.
What is the minimum and maximum loan amount for a two-wheeler loan?
The minimum loan amount can be as low as Rs. 20,000, and the maximum loan amount can be as high as Rs. 25 lakhs, depending on the lender.
What are the eligibility criteria for a two-wheeler loan?
The eligibility criteria for a two-wheeler loan may vary from lender to lender, but generally, you must be at least 18 years old, have a steady source of income, and meet the lender’s credit score requirements.
