Bike Loan Interest Rates: Check Two Wheeler Loan Interest Rates 2021 in SBI, Axis, HDFC, Eligibility Criteria, Documents Required for Availing a Bike Loan, and More Details Here!

by Vishwesh Rajan P | Updated Feb 01, 2021 09:53 IST

social social social social Bike Loan Interest Rates: Check Two Wheeler Loan Interest Rates 2021 in SBI, Axis, HDFC, Eligibility Criteria, Documents Required for Availing a Bike Loan, and More Details Here!

Bike Loan Interest Rates vary from bank to bank, and comparing them will help know who has the best rates and this article contains Bike Loan interest rates of all major banks, so it is easy to go through them. Information regarding two-wheelers EMI and Tenure are listed as well in the article given below. Bike Loans are subject to change, and we’ll be updating them if there are any. Read this article to get an idea on Bike Loan Interest Rates, the lowest Bike loan interest rate, SBI, Axis, HDFC Bike Loan interest Rate, etc.

Bike Loan Interest Rates - Comparison

Bike Loans aid individuals in procuring a bike of their choice. So if you are interested in applying for a bike loan, this article will help you out. Listed below are all the Bike Loan interest rates of various banks along with EMI and Tenure. You can easily compare and decide on what suits your needs the best. You can also find other info regarding documents required, compare different bike loan interest rates, etc.

Bank Two Wheeler Loan Interest Rates* Lowest EMI Per Rs. Ten Thousand For Max Tenure
Axis Bank 10.80% ₹ 257 for 4 years
SBI 16.05% ₹ 352 for 3 years
HDFC Bank 9.10% ₹ 249 for 4 years
PNB 9.55% ₹ 210 for 5 years
Bajaj Auto Finance 7.85% ₹ 313 for 3 years
IndusInd Bank 21.00% ₹ 377 for 3 years
Allahabad Bank 10.40% ₹ 256 for 4 years
Andhra Bank 9.90% ₹ 212 for 5 years
Bank of India 7.45% ₹ 200 for 5 years
Union Bank of India 9.90% ₹ 322 for 3 years
United Bank of India 9.55% ₹ 210 for 5 years
Corporation Bank 9.90% ₹ 322 for 3 years
Indian Bank 10.40% ₹ 214 for 5 years
Karnataka Bank 8.49% ₹ 205 for 5 years
Jammu And Kashmir Bank 8.70% ₹ 206 for 5 years
Canara Bank 9.05% ₹ 318 for 3 years

What is the SBI Bike Loan Interest Rate 2021?

The State Bank of India offers bike loans at a rate of 16.05%. The State Bank of India is an Indian multinational, public sector banking and financial services statutory body operating out of Mumbai. It is currently the 43rd largest bank in the world. The EMI rates are presently at INR 352 for three years.

What is the Bike loan interest rate of HDFC bank 2021?

HDFC Bank is currently offering Bike Loans at a rate of 9.10%. The EMI stands at INR 249 for four years. HDFC is an Indian banking company headquartered in Mumbai, Maharashtra. It is currently India’s largest private sector bank by assets. As of March 2020, it is the largest bank in India by market capitalisation as of March 2020.

How Much is Axis Bank Bike Loan Interest rate?

Axis Bank is currently offering Bike Loans at a rate of 1.80%. It is an Indian private sector bank which has its headquarters in Mumbai, Maharashtra. The EMI rate of Axis Bank is currently at INR 257 for four years.

Two Wheeler Loan Eligibility Criteria

The eligibility criteria for two-wheeler loans varies like how the Bike Loan Interest rates vary. We have compiled some of the common eligibility criteria of banks in India. Listed below are some of the conditions which when met, will make you eligible for bike loans in one or more banks in India,

Minimum and Maximum Age
  • 21 Yrs. – 65 Yrs.

Note: However, many banks require a minimum age of 18 years
Loan Amount
  • Upto ₹ 10 Lakh. Some banks give maximum loan upto ₹ 50 Lakh.

Note: Loan amount depends upon the value of the two-wheeler and the EMI you can pay
Net Monthly Income
  • Min. ₹ 18,000 per month
Employment Type
  • Salaried and Self Employed
  • Interest rates are typically in the range of 7.45% to 28.30% per annum
Minimum Work Experience
  • 1 year of total work experience
  • Business tenure should consist of 5 years & ITR required for at least 2 years (For Self Employed only)
CIBIL Score for Two-wheeler Loan
  • 600 & more credit history

Note: Most banks avoid giving loans if you have a low credit score

What is the Lowest Interest Rate for Bike Loan?

Bajaj Auto Finance currently offers the lowest interest rate for a bike loan. It is currently offering Bike Loans at a rate of 7.85%.  The EMI offered by them is INR 313 for three years. It is a non-bank singularity focused on providing two and three-wheeler financial assistance. The company was officially incorporated on March 25, 1987.

How Does EMI work for Two Wheeler Loans?

Two Wheeler Loan EMI is a fixed amount paid every month to the bank or financial institution paid to repay your loan. It is composed of both the Principal amount and Interest component. The Interest component is initially higher in the early months, but it gradually decreases as time progresses. Bike and other Auto loans depend on the loan amount, interest rate and loan tenure,

  • Loan Amount - The higher your loan amount, the higher your EMI.
  • Interest Rate - The Interest Rate determines your EMI.
  • Loan Tenure - If your loan tenure is high, then your EMI will reduce accordingly.

Comparison of Two Wheeler Loan Interest Rates In India

While comparing Two-wheeler loans of different banks, there are four criteria that customers should make a note of,

  1. Processing Fees: Most banks charge minimum processing fees. It could be Nil upto Rs.1,000. So check the processing fees for various banks while applying for loans.
  2. Insurance Premium: Though Bike loans are secured loans, it is best to take an insurance policy while applying for a loan. The premium for it varies from bank to bank depending on risk coverage which comes under various policies. So go through the loan sanction letter to know the coverage and premium.
  3. Prepayment and Foreclosure: Prepayment refers to paying a part of your loan before time. If you pay the entire loan before the stipulated time, then it is called a foreclosure. In such cases, Banks will levy pre-payment or foreclosure charges which can vary between nil to 3%. Ensure that when you are getting a low-interest rate loan, it does not come with high prepayment or foreclosure charges. In some cases this option might not even be available, so check carefully with your bank.
  4. Down Payment: Auto loans are offered at the rate of  80% of the on-road price or 100% of ex-showroom price. But 80% of the on-road price is almost on par with 95% of ex-showroom price. It is advisable to fund maximum as a down payment in such cases since it reduces your high monthly payments burden.

Documents Required for Availing a Bike Loan

Documents required for Bike loans include identity proof, certificate and proof of Business Existence, etc. Given below is a detailed description of all the documents and why it is required. You can scroll down to know about all the documents required for applying for a Bike loan.

Documents ID For Individuals For Firms, Partnerships
Signed Application Form Required
Identity Proof PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card
Certificate and Proof of Business Existence   PAN, sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
Address Proof Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter
Age Proof PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate
Income Proof Form 16, last 3 months salary slip, last 3 months bank account statement showing salary credit Last 2 years ITR, last 3 months bank account statement
Two-wheeler Quotation Quotation of cost of two-wheeler selected from the dealer
Disclaimer: The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

Bike Loan Interest Rates - FAQs

1. What is the bike loan interest rate of SBI?

The State Bank of India offers bike loans at a rate of 16.05%. The EMI rates are presently at INR 352 for three years.

2. What is the bike loan interest rate of HDFC?

HDFC Bank is currently offering Bike Loans at a rate of 9.10%. The EMI stands at INR 249 for four years.

3. What is the bike loan interest rate of Axis Bank?

Axis Bank is currently offering Bike Loans at a rate of 1.80%. It is an Indian private sector bank which has its headquarters in Mumbai, Maharashtra. The EMI rate of Axis Bank is currently at INR 257 for four years.

4. Who offers the lowest interest rate for Bike Loan?

The lowest interest rate is offered by Bajaj Auto Finance.

5. What is two-wheeler EMI?

Two Wheeler Loan EMI is a fixed amount paid every month to the bank or financial institution paid to repay your loan. It is composed of both the Principal amount and Interest component. The Interest component is initially higher in the early months, but it gradually decreases as time progresses.


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