Get the lowest two-wheeler loan interest rate starting from 0.99% p.a. with fast approvals, flexible tenures, and up to 100% financing on your two-wheeler.
✓ Interest Rates Starting @ 0.99% p.a. ✓ Up to 100% Financing ✓ Repayment Tenure of up to 4 Years
Securing a two-wheeler loan at a competitive interest rate can significantly reduce overall borrowing costs. With rates starting from just 0.99% p.a., choosing the right loan makes it easier to manage EMIs and stay within your monthly budget. Interest rates for bike financing may vary depending on factors such as credit score, income level, loan amount, and repayment tenure.
Understanding how lenders determine these rates, along with the associated charges, can help you make better financial decisions. By comparing options across banks and NBFCs, it becomes easier to identify suitable loan offers and take advantage of special schemes, discounts, or flexible repayment terms.
The table below provides information about current interest rates and processing fees on bike loans offered by various banks and NBFCs:
Lender |
Starting Interest Rate |
Maximum Loan Tenure |
Maximum Loan Amount |
Processing Fees |
Foreclosure Charges |
|
|
0.99% p.a. |
4 Years |
Up to ₹3 Lakhs |
2% to 4% + GST |
Not specified |
6.65% p.a. |
5 Years |
Up to 98% of the bike’s value |
Starting from 1% |
3% flat on principal outstanding+GST, after the second EMI till the end of tenure |
|
|
|
6.99% p.a. |
4 Years |
Up to 100% of the bike’s value |
1% to 4% of the loan amount |
5% of the outstanding principal amount + GST |
Bank of India |
8.75% p.a. |
up to 60 months |
95% of the bike’s value |
1% of loan (Min ₹500 – Max ₹10,000) |
At lender’s discretion |
Punjab National Bank |
12.60% p.a. |
up to 60 EMIs |
₹10 Lakhs |
Up to 1% of the loan amount |
Nil |
Union Bank of India |
12.35% p.a. |
36 months (60 Months under Tie-Up) |
₹10 Lakhs |
up to ₹1000 + GST |
Nil |
State Bank of India |
12.35% p.a. |
Up to 60 Months |
₹25 Lakhs |
2% of the loan amount + GST |
Nil |
HDFC Bank |
14.50% p.a. |
up to 48 months |
Up to 100% of the bike’s value |
Up to 2.5% of the loan amount |
Up to 5% of principal outstanding |
Disclaimer: The mentioned rates are as of 29th April 2025 and are subject to change at the lender’s discretion. Those marked with ‘*’ are available on Bajaj Markets.
Understanding the elements that influence bike loan interest rates of all banks & nbfcs can help you secure a better deal. Here are the key factors lenders usually consider:
Annual Income
Most lenders set a minimum income limit to apply for a two-wheeler finance. The higher the applicant earns, the lower the 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
Financial institutions offer different bike loan interest rates depending on the applicant being self-employed or salaried. Salaried individuals are usually offered bike loans at a lower interest rate compared to self-employed applicants.
Age
The age of the applicant plays a vital role in determining the interest rate on a bike loan. 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 and Credit History
One of the most important factors that determine the rate of interest on a two-wheeler is the applicant’s CIBIL 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.
Workplace
The reputation and stability of your workplace can influence loan approval and interest rates. Working for a well-established organisation might result in lower interest rates, as lenders consider such applicants more financially secure.
Loan Amount
The loan amount directly impacts your EMIs and overall interest payable. Higher loan amounts may lead to higher interest rates, as they represent a greater risk for the lender.
Loan Tenure (Duration)
A longer loan tenure reduces your monthly EMIs but increases the overall interest cost. Conversely, shorter tenures result in higher EMIs but lower total interest payments, offering a better deal overall.
Down Payment or Loan-to-Value (LTV) Ratio
A higher bike down payment reduces the loan amount, decreasing the lender’s risk and often leading to lower interest rates. Loans with a higher LTV ratio might attract higher interest rates.
Age and Model of the Two-wheeler
Newer models or those with better resale value typically attract lower interest rates. Older or less popular models may carry higher rates due to depreciation concerns.
Type of Two-wheeler (Standard, Luxury, Electric)
The type of bike influences the loan terms. Standard and electric bikes may have lower interest rates due to affordability and eco-friendly incentives, while luxury bikes might carry higher rates due to their higher risk profile.
Financial Institution or Lender
Two-wheeler loan interest rates typically vary among banks and NBFCs as they may have different policies. Often, NBFCs are more flexible when assessing your eligibility for the loan but may offer slightly higher rates than banks.
Existing Debt or Loan Obligations
If you have other ongoing loans, lenders may consider you a higher-risk borrower. This might result in higher interest rates on your bike loan or stricter terms, as your repayment capacity could be stretched.
Special Schemes and Promotions
Lenders often provide festive offers or promotional schemes, reducing interest rates or waiving processing fees. This usually makes loans more affordable during specific periods.
Existing Connection with the Lender
Having an existing relationship with the lender, such as a savings account or past loan, may lead to preferential rates, faster approval, and simplified documentation processes.
Here is a list of the different charges associated with a two-wheeler loan that you should be aware of, alongside the interest rate:
Processing Fee
Lenders typically charge a one-time processing fee when applying for a loan. It is usually a percentage of the loan amount. The fee is used to cover the administrative costs of the loan.
Prepayment Charges
If you choose to repay the loan before the tenure ends, some lenders impose a penalty for prepayment. It's essential to check these terms if you plan on early repayment.
Late Payment Fees
Missing an EMI payment can attract hefty late fees or penalties. These charges can accumulate, increasing your overall borrowing cost.
Documentation Charges
Some lenders charge a fee for loan documentation and paperwork, which may be overlooked but adds to the loan's total cost
Insurance Premium
Lenders may require you to purchase insurance for the bike, which can be included in the loan amount, thereby increasing your total repayment obligation
Eligibility Criteria
Lenders assess factors like age, income, employment type, credit score, and repayment capacity to determine loan eligibility.
Disbursal Time
Two-wheeler loans typically have quick disbursal times, with some lenders offering approval and disbursal within 24 to 48 hours.
Other Charges
Additional charges like processing fees, prepayment penalties, documentation charges, and late payment fees can increase the total cost of the loan.
Customer Service
Responsive customer support ensures a hassle-free borrowing experience, helping with queries, documentation, and post-loan management.
Discounts and Special Offers
Festive discounts, lower interest rates, and no processing fees are often provided during promotional periods, reducing borrowing costs.
Understanding your bike loan EMI is essential for smart financial planning. Your EMI depends on several factors, including the loan amount, interest rate, and repayment tenure. Even a slight change in the bike EMI interest rate or loan duration can increase your monthly burden or total repayment.
Use our two-wheeler loan EMI calculator to calculate your bike EMI before applying for a two-wheeler loan that fits your budget and long-term financial goals.
When applying for a bike loan, the interest rate can significantly affect your overall repayment amount. Lenders generally offer two types of interest rate structures:
Fixed Interest Rate
A fixed interest rate remains unchanged throughout the loan tenure. This means your EMI (Equated Monthly Instalment) will stay the same, regardless of fluctuations in market rates. It offers stability and predictability, making it easier to plan and manage your monthly budget. Fixed rates are well-suited for borrowers who prefer consistency and have a low tolerance for financial risk.
Floating/Variable Interest Rate
A floating interest rate varies over the course of the loan, usually linked to a benchmark such as the Reserve Bank of India’s repo rate or the Marginal Cost of Funds Based Lending Rate (MCLR). As these benchmarks change, so does your interest rate and EMI. While initial rates are often lower than fixed rates, they may increase or decrease depending on market trends. This option may suit borrowers who are comfortable with some level of risk and hope to benefit from possible rate cuts in the future.
Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
Frequently Asked Questions
How to get the lowest bike loan interest rate?
To get the lowest bike loan interest rate, have a good credit history, a solid 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 for a fixed interest rate, your lender will not change your bike loan interest rate during the tenure.
Are there different interest rates for new and used two-wheeler loans?
Yes, a new bike’s loan interest rate is usually lower compared to a pre-owned bike. This is because new vehicles have higher resale value and lower risk, making them more favourable for lenders. However, this is subject to the lender’s policies and your eligibility.
Can I change the interest rate after the loan is approved?
No, the interest rate is fixed at the time of loan approval and cannot be changed during the tenure. However, you may refinance the loan with a new lender offering better terms.
What happens if I miss a payment? Does it affect my interest rate?
Missing a payment does not change your interest rate, but it can lead to late fees and negatively impact your credit score. This may affect your eligibility for any credit product in the future.
How can I check the interest rate for a bike loan?
You can check the interest rate on a lender’s official website or through financial marketplaces like Bajaj Markets. Rates may vary based on your profile, loan amount, and repayment tenure.
Can I repay my bike loan early to save on interest?
Yes, early repayment can reduce your overall interest burden. However, check with your lender for any prepayment charges or conditions.
Are bike loan interest rates the same for all types of bikes?
No, interest rates can vary depending on the type of bike. Luxury or high-end models may attract higher rates due to increased risk.
Can I get a bike loan at a low interest rate without making a down payment?
It’s possible, but rare. Loans with no down payment usually come with slightly higher interest rates due to the increased loan-to-value ratio.
How does the loan tenure affect the interest rate?
Longer tenures may have higher interest rates and result in more interest paid over time. Shorter tenures often attract lower rates but come with higher EMIs.
Can I switch my bike loan interest rate from fixed to floating, or vice versa?
This depends on your lender’s policy. Some lenders may allow switching with specific conditions or charges involved.
Which bank offers the lowest interest rate for a bike loan?
Interest rates vary across lenders and depend on the applicant’s profile. It's best to compare offers from multiple banks and NBFCs to find the lowest available rate.
