✓ Attractive Interest Rates ✓ Repayment Tenure of up to 3 Years ✓ Smooth Online Process 

India is one of the countries with the highest number of two wheelers. Many two wheelers are available in the market which are specially designed for Indian roads. Bike loans offered by various lenders are helping everyone to achieve the dream of having a two wheeler of their own come true.These loans are offered at low interest rates which makes them affordable. If you are someone who is planning to buy a bike anytime soon by availing a two wheeler loan, take a look at the 2 wheeler loan interest rates offered by different lenders in India. The bike loan interest rates range between 6.85% - 28.30% per annum. Check out who offers the lowest bike loan interest rate here.

Two Wheeler Loan Interest Rate & Charges

Before getting a bike loan, it is important to know the two wheeler interest rates for loans. The interest rate varies from person to person based on the profile, repayment capacity, annual income, and loan type. Secured loans have lower interest rates compared to unsecured loans. Check out the comparison of interest rates, processing fees, prepayment, and foreclosure charges offered by various Banks and NBFC in the table below. 


Interest Rates

Processing Fees

Prepayment charges

Foreclosure charges

Union Bank of India

9.90% - 10.00% 

0.5% of the loan amount


3% – 10% Based on the time of foreclosure

Bank of India

6.85% - 8.55% 

Rs. 500 - Rs. 10,000

Up to 3% of the Loan Amount

3% – 10% Based on the time of foreclosure 

State Bank of India 

16.25% - 18.00% 

2% of the loan amount + GST


At bank’s discretion

Bajaj Auto Finance

7.25% - 11.60%

1%- 3% of loan amount


3% on principal outstanding amount + GST and nil after 12 EMI payments

L&T Finance

7.99% - 15.00%

At L&T discretion

As per the NBFC’s terms and conditions

At lender’s discretion

Punjab National Bank

8.65% - 10.00% 

0.5% of the loan amount


3% – 10% Based on the time of foreclosure 

Axis Bank

10.80% - 28.30%

Up to 2.5% of the loan amount

5% of part payment amount

5% of principal outstanding

Bank of Baroda

BRLLR + Strategic Premium + 4.00% 

2% of loan amount minimum Rs.1,000

At bank’s discretion




Up to 2.5% of the loan amount

5% of the principal amount

6% of principal outstanding


*Fees and charges are subject to market conditions and financial institution’s discretion.

Types of Interest Rate

There are two types of two wheeler loan interest rates; floating interest rate and fixed interest rate. Fixed interest rates remain constant irrespective of market rate change. If you choose a fixed interest rate of 10%, it will remain the same till the end of the loan tenure.

The floating interest rates fluctuate depending on the current market conditions. Marginal Cost of funds-based Lending Rate fluctuates with the change in repo rate. So, with time your floating interest rate which is linked to this rate, could change accordingly. Floating rates are comparatively lower than fixed rates. So, most of the borrowers choose floating rates for their two wheeler loans.

Tips to Avail Two Wheeler Loan at Low Interest Rate

While applying for a two wheeler loan, you will always try to get a loan with the lowest interest rate possible. Take a look at the few tips that can help you get lowest two wheeler loan interest rates:

  • Good credit historyCredit score plays an important role in the bike loan interest rate you will be offered. If you don’t have a good credit, the chances to get a low loan interest rate is low. Make sure your credit history is faultless before applying for a loan.

  • Good relations matter - Try taking a bike loan from the bank where you already have a savings account. If you have maintained a very good and warm relationship with them, you can get better two wheeler interest rates.

  • Low debt status - Check your debt-to-income ratio before applying for a new loan. Pay off existing loans and bring down this ratio. This ratio includes the part of current income that is used for repaying credit card bills and other loans. The chances of getting good interest rates are high if you have a low ratio.

  • Better negotiations - Negotiating with your bank can help you get better interest rates in situations where you don’t completely fulfil the eligibility criteria for loans.

Factors that Affect Two Wheeler Loan Interest Rate

Check out the various factors that determine your two wheeler loan interest rates:

  • Annual Income: Most lenders set a minimum income limit to apply for a two wheeler loan. The higher the applicant earns, the lower risk they have of not repaying your loan. If you have a higher level of income, you may get a lower interest rate.

  • Employment Type: The financial institutions offer different bike loan interest rates depending on the applicant being self-employed or salaried. Salaried individuals will be offered bike loans at a lower interest rate compared to the self-employed applicants.

  • Age: The age of the applicant plays a vital role in determining the loan interest rate. If you’re nearing retirement age, you will be charged a higher interest rate because your capacity to repay a loan may be lower compared to young people.

  • Credit Score: One of the most important factors that determine the two wheeler loan interest rate is the applicant’s credit score. If you have a good credit score, you may be able to get a lower interest rate, and a higher interest rate will be charged if you have a bad credit score.

Two Wheeler Loan Interest Rate FAQs

✔️How to get the lowest bike loan interest rate?

To get the lowest bike loan interest rate, have a good credit history, warm relationship with the bank, and a low debt-to-income ratio.

✔️Will my lender change my bike loan interest rate during the tenure?

If you opt a fixed interest rate, your lender will not change your bike loan interest rate during the tenure.

✔️What are the main factors that affect two wheeler loan interest rates?

The main factors that affect two wheeler loan interest rates are your annual income, age, employer, employment type, credit history and your relationship with the lender.

✔️What are the different methods of comparing 2 wheeler loan interest rates?

You can compare 2 wheeler loan interest rates using online sites’ comparison tables or by visiting websites of different banks offering two wheeler loans.