Owning a brand new bike is not less than a thrill. In Indian cities, Two-wheelers are the preferred mode of transport hence Two-Wheeler loans and low-interest rates are the essential part of the auto industry that made the buying process affordable and convenient for every Indian.
Before you apply for one, take a look at the top 5 banks for two-wheeler loans that are providing maximum benefits of lowest interest rates, loan processing charges, zero down payment, etc. The interest rates on these loans range anywhere between 7.4% per annum to 16.05% per annum.
Top 5 Banks for Two-Wheeler Loan with Lower Interest Rates
Two-wheelers are not only affordable but also able to glide through the busy, bumpy Indian roads with ease that four-wheelers cannot match. Due to easy procedure and the availability of monthly installments, a Bike Loan proves to be the most convenient option. For that reason, here we have covered the top 5 banks for two-wheeler loans with lower interest rates, loan processing charges, documents required to avail of a loan, and other important details. 1) Bank of India two-Wheeler Loan Interest Rate
Bank of India’s two-wheeler loans is available for buying both new and second-hand two-wheelers as well as superbikes. Bank of India’s two-wheeler lowest interest rates are attractive and the documentation process is very simplified. The features of the Bank of India two-wheeler loan are given below:Two-wheeler Loan- Term loan for new vehicles and demand loan for second-hand vehicles
- Two-wheeler Interest Rate- 7.75% to 8.35%
- Maximum Loan Amount- Up to Rs.50 lakh
- Repayment Period- Up to 5 years
- Two-wheeler Processing Fee- 1% of the loan amount; Rs.500 minimum and Rs.10000 maximum
- Income- at the discretion of the bank
2) State Bank of India Two-Wheeler Loan Interest Rate
State Bank of India offers two-wheeler loans for a minimum amount of 2.50 lakhs. The loan application process is hassle-free with minimal documentation that makes it one of the easiest ways to own a dream bike. state bank of India’s two-wheeler lowest interest rates are attractive. The features of the State Bank of India two-wheeler loan are given below:- Two-wheeler Interest Rate-16.05% p.a. for bikes and 10.25% p.a. for super-bikes
- Two-wheeler Minimum Loan Amount- For bikes-Rs.30000 and for super bikes-Rs.2.5 lakh
- Two-wheeler Maximum Loan Amount- For bikes-Rs.2.5 lakh and for superbikes there is no upper limit
- Minimum Income Requirement- For bikes-Rs.1.5 lakh and for superbikes- Rs.2.5 lakh
- Repayment Period- Up to 3 years for bikes and up to 5 years for superbikes
- Two-wheeler Processing Fee- As per the bank’s requirement
- Two-wheeler Prepayment Charges- As per the bank’s requirement
GeneralDocuments Required for SBI Two-Wheeler Loan:
- Loan application form filled up accurately
- Valid identity proof such as voters ID/passport/PAN card
- Proof of residential address such as utility bills, passport, tax receipts, etc.
- 2 passport size photographs
- Bank account statements for the last 6 months
- Identification of signature from records of the bank
3) HDFC Two Wheeler Loan Interest Rate
HDFC Bank is one of the leading private banks which offers two-wheeler loans at lucrative rates of interest and flexible loan repayment tenure. HDFC Bank is providing loans from more than 3000 branches across India with the easy documentation process and steady and effective customer support. Quick disbursal of loan and hassle-free process. It offers easy paying of EMIs through Standing Instructions, ECS, or post-dated cheques. With flexible repayment options, the tenure ranges from 12 months to 48 months. HDFC two-wheeler loans come with a wide array of attractive features such as lower interest rates, zero down payment, zero or nominal processing fees, easy loan disbursement mentioned below.- Two-wheeler Interest Rate- Starts at 11.83% p.a.
- Minimum Loan Amount- As per the bank’s terms and conditions
- Maximum Loan Amount- Up to 100% of the price of the vehicle
- Processing Fee- maximum3% of the loan amount (50% lower for HDFC account holders)
- Loan Repayment Period- 12 months to 48 months
- Prepayment Charges- From 3% to 10% of the outstanding principal
Documentation for HDFC Bank Two Wheeler Loan:
- Valid identity proof such as voters ID/passport/PAN card
- Proof of residential address such as utility bills, passport, tax receipts, etc.
- 2 passport size photographs
- Income proof whichever is applicable from salary slip/ Income Tax return/Salary certificate
4) Syndicate Bank Two Wheeler Loan Interest Rate
Syndicate Bank is offering a two-wheeler loan under 'SyndVahan' with customer-centric benefits like the lowest rate of interest, high financing quantum, easy eligibility, and flexible repayment options. The features of the syndicate Bank two-wheeler loan are given below:Syndicate Bank Two Wheeler Loan Features:
- Loan of up to 95% of the on-road price
- no maximum ceiling for the finance quantum
- Syndicate Bank Two-Wheeler Loan Interest Rate is Base Rate plus 2% (Compounded Annually)
- Up to 60 EMIs for repaying the loan
- The minimum annual income of Rs.50,000 is also eligible
- General Documentation for Syndicate Bank Two Wheeler Loan:
- Passport size photos with a duly filled loan application form
- Proof of identity and address proof
- Salaried applicants will have to submit the salary slips for the last 3 months.
- Bank account statements
- Salaried and self-employed applicants must submit the latest IT return statements
5) Punjab National Bank (PNB) Two Wheeler Loan Interest Rate
Punjab National Bank, with over the 120 years in existence and a network of 6564 branch offices are serving more than 9 crore customers across the world. Two Wheeler Loan is one of the most popular loans among all other loans because of the competitive and affordable interest rates and flexible terms of the loan.Punjab National Bank (PNB) Two Wheeler Loan Features:
- Lowest Interest rate between 7.4% to 7.65%
- Lowest processing fee between Rs.500 to Rs.1,000
- Maximum loan approval amount up to Rs.1.5 lakh
- No prepayment charges on earlier repayment
- Punjab National Bank Two Wheeler Loan Interest Rate:
- The interest rate if the concerned branch is disbursing the salary and/or under the check-off facility will be BR+3.00% for less than 3 years and BR+3.00%+TP if 3 years and above.
- For others including Business concern, the interest rate for less than 3 years is BR+4.00% and BR+4.00%+TP for 3 years & above.
- PNB Two Wheeler Loan Fees and Charges:
- Upfront fee/ Processing Charges- Rs. 275/-+ Service tax & Edu.
- Documentation Charges- Rs. 275/-+ Service tax &Edu.cess
General Checklist for Two-Wheeler Loan
- Bike quotation
- Identity proof
- Residence address and ownership proof
- Income proof
- Photo identity proof
- Bank continuity proof
- Bank statement
- 1 passport size photograph
- Latest ITR
- CIBIL Score and report
General Documents Required for Two-Wheeler Loan
A copy of any of the following identity proof documents:
- Passport
- Photo Credit Card (front & reverse)
- Voters ID Card
- Driving License
- PAN card
- Copy of Company ID card of MNC/Public Ltd./PSU/Govt. company
- Ration Card with Photo
A copy of any of the following documents as address proof:
- Passport
- Voter's ID card
- Driving License
- Rental Agreement
- Telephone Bill
- Electricity Bill
- Gas Connection Bills
- Ration Card
- Sale Deed
- Property Purchase Agreement
- Latest Credit Card Billing Statement
- LIC Policy
- Company ID card of MNC/Public Ltd./PSU/Govt. The company, containing the residence address)
- Following documents as Income Proof:
- For Partnership/Proprietary firms &Pvt. Ltd. Co's – Salary Certificate to be accepted with the following: Salary Certificate to clearly state the deductions, and Name & Designation of the authorized signatory.
- For Self Employed: Copy of the latest Income Tax Return
- Salaried: Latest salary slip for Govt. employees. If a Salary slip is not available, only a salary certificate to be accepted with deductions.
Factors that affect Two-Wheeler Loan Interest Rates
Many factors affect two-wheeler loan interest rates as well as approval of the loan. Apart from lower interest rates, features like zero down payment, zero or nominal processing fees, easy loan disbursement also affect the total cost of the two-wheeler loan. Take a look at the various factors that impact the interest rate of a two-wheeler loan.- Credit Score: Most banks have a fixed interest rate for two-wheeler loans. But a good credit score may be able to get a lower interest rate. Vice a Verse, if your credit score is bad, the bank will most likely charge a higher interest rate. In that way, a credit score is one of the most important factors that determine the lowest interest rate for a two-wheeler loan in India.
- Nature of Employment: Not all the banks, but some may offer different interest rates depending on the self-employed or salaried person.
- Income: The higher the earning, the lower risk of not repaying a loan. This usually means banks offer a favorable interest rate if you have a higher income.
- Age: Your age plays an important role in determining your interest rate. It is considered that if you’re closer to the retirement age, your capacity to repay a loan will be lower. That’s why this loan may cost more than usual.
- Place of Work: If you’re working with a reputed organization, it means you’re drawing a stable income and that may lead to getting you lower interest rates.
- Existing relationship with the bank: A good relationship with a bank can get better loan terms like zero down payment, lower interest rates, or nominal processing fees. If you already have an existing relationship with the loan provider, it may help you get a better rate of interest.
Charges to Consider other than Interest Rates
- Processing fees – A processing fee is a one-time charge that the lender will levy for processing your loan application. Most banks charge minimum processing fees. Processing Fee always impacts on monthly repayment even if you get a loan with a low-interest rate.
- Prepayment and Foreclosure Charges – Repaying loan partially before time is called part prepayment and paying the entire loan amount before time is called foreclosure. Prepaying a loan can help you save money on interest costs but many banks typically charge a fee if you want to prepay or foreclose a loan range from nil to even up to 3%. So, check and calculate carefully before applying.
- Disbursal time –Disbursal time is the time the banks take to give the money from the time you apply for it. Find out how long various banks take to sanction and disburse your loan if you’re in a hurry.
- Down payment – Banks offer two-wheeler loans either at 80% of the on-road price or 100% of ex-showroom price. One is advised to fund maximum as a down payment as it reduces the burden of high monthly payments. However, 80% of on-road is almost equivalent to 95% of the ex-showroom price.
- Insurance premium – When applying for a loan, it is advisable to take an insurance policy along with it. The insurance premium varies from bank to bank depending upon the risk coverage. Make sure the bike loan includes insurance policy as well otherwise you have to pay the premium separately.
