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Owning a two-wheeler has become a necessity for many individuals, providing a convenient and cost-effective mode of transportation. However, the financial aspect of purchasing a two-wheeler can often pose a significant challenge. This is where two-wheeler loans come into play, offering a viable solution for individuals looking to finance their dream ride when they are not able to afford a car.
In this article, we will talk about two-wheeler loan interest rates, their significance, how they are calculated, and the key factors lenders should consider before determining these rates. Whether you are a first-time buyer or someone looking to upgrade their current two-wheeler, having a comprehensive understanding of interest rates is a must to make informed financial decisions.
|TWL Bank||Interest Rate||Tenure||Processing Fee|
|ICICI Bank||9.00% p.a. or above||48 Months or above||Up to 4.75% of the loan amount + GST|
|IDFC First Bank||9.99% p.a. Or above||6 Months to 48 Months||5% of the loan amount|
|Axis Bank||11.00% p.a. 0r above||12 Months to 38 Months||2.5% of the loan amount|
|Bank of India||11.00% p.a. or above||Up to 5 Years||Contact the bank|
|Punjab National Bank||11.15% p.a. or above||24 Months to 60 Months||0.5% of the loan amount subject to Rs.500 to Rs.1,000|
|Canara Bank||11.35% p.a. or above||12 Months to 48 Months||Nil|
|Union Bank of India||12.20% p.a. or above||Up to 3 Years||Contact the bank|
|Bank of Baroda||9.40% p.a. or above||Up to 60 Months||2% of the loan amount|
|Karnataka Bank||14.23 p.a. or above||Up to 5 Years||Contact the bank|
|HDFC Bank||14.50% p.a. or above||12 Months to 48 Months||2.5% of the loan amount|
|State Bank of India||17.75% -19.50% p.a.||Up to 60 Months||2.00% of the loan amount + GST (minimum of Rs.1,000)|
|UCO Bank||Floating rate + 4.80%||Up to 4 Years||1% of the loan amount (minimum of Rs.500)|
|Indian Overseas Bank||12.55% p.a. or above||72 Months||Contact the bank|
|Jammu and Kashmir Bank||Fixed: RLLR + 2.00%
Floating: RLLR + 1.50%
|Up to 60 Months||1% of the loan amount (minimum of Rs.500)|
|Karur Vysya Bank||10.80% p.a. – 17.30% p.a.||5 Years||1% of the loan amount (minimum of Rs.1,000)|
|Tata Capital||10.75% p.a. or above||6 Months to 60 Months||3.10% of the loan amount|
|Bajaj Auto Finance||6.2% – 13.8% p.a.||Up to 60 Months||1% or more of the loan amount|
|Muthoot Capital||0.99% p.a. or above||Up to 48 Months||1% to 4% of the loan amount|
|Hero Fincorp||10.65% p.a. Or above||Up to 48 Months||NA|
|Tamilnad Mercantile Bank||14.95% p.a.||Up to 35 Months||1% of the loan amount|
Owning a two-wheeler can significantly improve your daily commute and offer convenience in navigating through crowded city streets. However, purchasing a two-wheeler may require financial assistance in the form of a loan. When availing of a two-wheeler loan in India, it is important to consider the interest rate to ensure affordability.
Furthermore, in the list given below, we will discuss some valuable tips to help you avail of a two-wheeler loan at a low-interest rate in India:
Your credit score plays a vital role in determining the interest rate offered by lenders. A high credit score indicates your creditworthiness and ability to repay the loan.
To avail of a two-wheeler loan at a low-interest rate, comparing loan offers from different lenders is essential. Banks, non-banking financial companies (NBFCs), and online lending platforms offer two-wheeler loans.
A larger down payment reduces the loan amount and subsequently lowers the interest charged. Lenders generally offer more attractive interest rates when the down payment is higher.
While longer loan tenures may seem tempting due to lower monthly instalments, they often result in higher overall interest payments. Opting for a shorter loan tenure can help you save on interest charges.
Once you have shortlisted a few lenders, don’t hesitate to negotiate the interest rate. Lenders are often open to negotiation, especially if you have a good credit score and a strong repayment capacity. Once you are done with the negotiations, you can narrow down the most suitable lender for you according to your financial situation.
Lenders consider stable employment as a positive factor while evaluating loan applications. Demonstrating a consistent employment history with a steady income can increase your chances of securing a low-interest two-wheeler loan.
Before finalising a two-wheeler loan, carefully read the loan agreement and terms and conditions. Pay attention to details such as processing fees, prepayment charges, late payment penalties, and any hidden costs.
While applying for a two-wheeler bike loan, it’s necessary for everyone to understand the EMIs associated with it, as it will help in financial planning and stability. What is the precise monthly instalment payment you must make to a lender each month?
You can view the monthly instalments (EMI) for a bike loan of INR 50,000, INR 1 Lac, INR 1.5 Lacs, INR 2 Lacs, and INR 2.5 Lacs here. The interest rates are 11% and 18% for 24 and 48 months, respectively.
You should always have your documentation on hand when applying for a loan to minimise last-minute trouble. Please read the page below to learn the list of documents that are required.
When it comes to purchasing a two-wheeler, many individuals rely on financing options like two-wheeler loans to make their dream a reality. However, before finalising a loan, it is crucial to consider the interest rates offered by different lenders. Comparing interest rates allows you to make an informed decision and secure an affordable loan that suits your financial capabilities. In this article, we will discuss the importance of comparing interest rates before applying for a two-wheeler loan.
One of the primary reasons to compare interest rates is to save money. Interest rates can significantly impact the overall cost of your loan. Even a small difference in the interest rate can result in substantial savings over the loan tenure.
Comparing interest rates helps you determine the affordability of the loan. Different lenders may have varying interest rate structures based on factors such as your credit score, income, and loan amount.
Apart from interest rates, lenders may have different loan terms and conditions. By comparing various loan offers, you gain a comprehensive understanding of the loan tenure, processing fees, prepayment charges, and other relevant factors.
Comparing interest rates allows you to explore a wide range of loan options. Banks, non-banking financial companies (NBFCs), and online lending platforms offer two-wheeler loans, each with its own interest rate structure.
Having knowledge about the interest rates offered by different lenders gives you the upper hand in negotiating with them. Armed with competitive offers, you can leverage this information to negotiate for a lower interest rate or better loan terms.
Comparing interest rates provides you with confidence in your decision to apply for a two-wheeler loan. By conducting thorough research and understanding the market rates, you can feel assured that you have made an informed choice.
When applying for a two-wheeler loan, one of the critical aspects to consider is the interest rate. The interest rate determines the cost of borrowing and plays a significant role in determining the affordability of the loan. Various factors influence two-wheeler loan interest rates, and understanding these factors can help borrowers make informed decisions. we will discuss the key factors that affect two-wheeler loan interest rates.
The credit score of the borrower is an essential factor that influences the interest rate offered by lenders. A credit score is a numerical representation of an individual’s creditworthiness and financial history. Lenders use credit scores to assess the risk associated with lending money.
The loan amount and tenure also impact two-wheeler loan interest rates. Generally, higher loan amounts or longer tenures may attract higher interest rates.
Borrowers’ income and debt-to-income ratio play a crucial role in determining the interest rate for two-wheeler loans. Lenders assess the borrower’s income to ensure their ability to repay the loan.
Lenders closely evaluate the borrower’s repayment history to assess their creditworthiness. If the borrower has a history of timely payments on previous loans, it reflects positively on their creditworthiness and may lead to lower interest rates.
External factors, such as market conditions and economic trends, can influence two-wheeler loan interest rates. Changes in the Reserve Bank of India’s monetary policy, inflation rates, and overall economic stability can impact the interest rates offered by lenders.
The type of lender also affects two-wheeler loan interest rates. Banks, non-banking financial companies (NBFCs), and online lending platforms may have different interest rate structures based on their business models, operational costs, and target market.
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Banks like ICICI Bank, HDFC Bank, SBI, Axis Bank, Tata Capital and many more offer the best 2-wheeler loan.
No, the proof of income is one mandatory document that should be produced while applying for a 2-wheeler loan.
A two-wheeler loan can be considered good for individuals who are unable to pay the full amount in one go and need some financial assistance.
If you are a professional, self-employed, or business owner, you are eligible to claim tax deductions on two-wheeler loans.
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