Latest Two-wheeler Loan Interest Rates in 2022, Bike Loan Rates

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Are you planning to buy the bike that you have been eyeing for a long time? And are you also applying for a loan to get that dream bike of yours? If so, you might want to know the bike loan interest rates that are offered by some of the well-known lenders in India. The interest rates range between 6.60% to 28.00% p.a. and you should proceed only if you are okay with that percentage.

Know More: A Complete Guide To Know About Two Wheeler Insurance Policy

Loan Interest Rates of Two-wheelers 

Mentioned herein below is a glance at the fees that are charged by various lenders in the country.

  • State Bank of India: For a loan amount of INR 30,000 to INR 2.50 lakh, the two-wheeler loan interest rate charged is 16.25% to 18.00% p.a. The processing fee is 2.00% of the loan amount + GST (minimum of INR 1,000).
  • HDFC Bank: To know the loan amount and whether you are eligible for the amount or not, you have to contact the bank directly. However, the interest rate is 14.50% p.a. onwards. The processing fee is 2.5% of the loan amount.
  • Punjab National Bank: For a loan amount of up to INR 10 lakh, the interest rate is 8.65% p.a. onwards. The processing fee is 0.5% of the loan amount ranging from INR 500 to INR 1,000.
  • Union Bank of India: If your loan amount is up to INR 10 lakh, the interest amount would be 9.90% p.a. to 10.00% p.a. To know the processing fee, you need to get in touch with the bank.
  • Axis Bank: If the loan amount is INR 25,001 onwards, the interest rate of this bank would be 9.00% p.a. to 28.30% p.a. The processing fee is 2.5% of the loan amount.

How do I calculate two-wheeler loan EMI?

EMI shows how much you have to pay off to the bank every month. The amount of EMI that you have to pay depends on the principal amount of the loan, the rate of interest, and the tenure that has been chosen by you. The other factor that plays a vital role in determining the EMI is the pre-payment patterns and the processing fee.

You must find out all the necessary information about the EMI that you would be required to pay in the future before you apply for a two-wheeler loan in any bank. You can also consider comparing several loan EMIs. This will help you to find the most reasonable and suitable loan.

You can find a two-wheeler loan calculator, which is a repayment calculator tool. You can use this tool to find the EMI that you are supposed to pay, in just a few minutes. You just have to enter details of the loan amount that you want to take, and you will get to know the EMI that has to be paid by you.

Is variable interest rate better than fixed interest rate?

In some cases, as you apply for a bike loan, you may get the option to choose between a variable interest rate and a fixed interest rate. This is offered by the bank itself. This might be confusing to you, especially if you are new to this and are not aware of the concepts. Well, to choose between these two, you need to be aware of the risk level that is associated with each of these.

Usually, the fixed rate of interest is higher than the variable rate of interest. However, on the brighter side, the fixed interest rates remain constant and do not change with the change in market rates. On the other hand, variable rates of interest change depending on the conditions of the market. Each time RBI makes any kind of change in the repo rate, the rates related to the Marginal Cost of Funds based Lending Rate (MCLR) also change.

Some of the factors that may impact two-wheeler loan rates of interest

Here are some of the factors mentioned below that may affect the rate of interest of a two-wheeler loan that you are going to take.

  • Credit score : This is certainly one of the major factors that help in determining your rate of interest. The majority of the banks come with a fixed rate for this kind of loan. If you are maintaining a good credit score, the interest rate that you will get will be much lower. If your credit score is not good, you will get a loan but the interest rate will be higher.
  • Income level :Every bank has a certain level of income that they expect the borrowers to earn each month. The more your monthly earnings are, the less risk of you not repaying the loan is. This means you will get a suitable 2-wheeler loan interest rate. If the level of income is lower, the rate of interest will be higher.
  • Place of work :The organization that you work for also matters when you are applying for a two-wheeler loan. This will determine your rate of interest for the loan. If you are working with a reputed organization, it shows that your job is stable and you will be able to pay off the loan much easier. Therefore, the rate of interest will be lower.
  • Nature of employment :Depending on the nature of your employment, such as whether you are salaried or self-employed, banks may offer varied rates of interest.
  • Your age :The rate of interest you are getting depends much on your age.  For example, if you are going to get retired anytime soon, the rate of interest for you will be a bit more.

Once you have made up your mind regarding the bike that you want to buy, you can browse through the offers from the reputed creditors to find the lowest bike loan interest rate. Most creditors allow you to apply for a loan online, and you can easily have the loan approved, bringing you closer to your new ride. You can then also find the best comprehensive or third-party insurance policy to protect your new bike against any damage.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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