Two Wheeler Loan
Looking for the best two-wheeler loan to finance your dream bike or scooter? Look no further, you can find the most competitive and convenient two-wheeler loan options on the market. Our easy application process ensures quick approval and disbursal, so you can hit the road in no time. With flexible repayment options and affordable interest rates, you can find a bike loan or a 2-wheeler loan that fits your needs.
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Two-Wheeler Loan from Banks & NBFCs
Here are the bike loan interest rates offered by different Banks. Refer to the table below and compare to choose the right lender for you!
| Personal Loan by Bank/NBFC | Interest Rates | Processing Fees |
|---|---|---|
| Axis Bank | 10.80% – 28.30% p.a | Up to 2.5% of the loan amount |
| Bajaj Auto Finance | Starting at 8.50% p.a | 3% of loan amount |
| Bank of India | 6.85% – 8.55% p.a | Rs. 500 – Rs. 10,000 |
| HDFC Bank | 20.90% p.a | Up to 2.5% of the loan amount |
| Punjab National Bank | 8.65% – 10.00% p.a | 0.5% of the loan amount |
| State Bank of India | 16.25% – 18.00% p.a | 2% of the loan amount + GST |
| Union Bank of India | 9.90% – 10.00% p.a | 0.5% of the loan amount |
| L&T Finance | 7.99% – 15.00% p.a | At L&T discretion |
Note: The above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual banks
Personal Loan
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Two-Wheeler Loan Interest Rates & Charges
Financing your scooter loan has now become easier! Refer to the table below to learn everything about instant bike loans interest rates to loan tenure.
| Two-wheeler loan interest rates | 0.99% p.a onwards |
| Loan amount | Up to ₹3 lakhs |
| Loan Processing Fees | Up to 4% plus applicable taxes |
| Loan Tenure | Up to 20 months |
| Repayment Tenure | Upto 3-5 Years (Depending on Bank) |
Two-wheeler Loan EMI calculator:
A two-wheeler EMI calculator can be used to calculate your monthly EMI.
You can also use the following formula to calculate your monthly installments!
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
The loan amount, or principal is P, the interest rate is R, and the number of monthly payments is N.
You can calculate the monthly EMI by entering the principal amount (P), the interest rate (R), and the number of repayment months/tenure (N).
EMI Calculator
Two-Wheeler Loan Eligibility Criteria:
Here are the factors to consider when checking your two-wheeler loan eligibility criteria.
| Age | 18 – 65 years |
| Minimum salary | ₹10,000 |
| Employment duration | Minimum 1 Year |
| Employment status | Salaried or self-employed |
| Residence | Reside in the city for at least a year |
Documentation Required for an Instant Bike Loan
Make sure to keep these documents in check and handy to avail an instant two-wheeler loan online with Buddy Loan
Documents Required:
Income certificate
Age proof : Birth Certificate, Driving licence
ID Proof :Aadhaar Card, PAN Card
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Features & Benefits of a Two-Wheeler Loan
Reasons to Take a Two-Wheeler Loan
Here are five reasons why you should consider taking a two-wheeler loan.
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- Purchasing the Bike You Desire
If you need a convenient way to travel and are captivated by a bike with a stunning design and premium features, acquiring it through a bike loan can be an ideal solution.
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- Tax Benefits and Savings
By taking out a two-wheeler loan, you become eligible for tax benefits. Specifically, you can enjoy an income tax deduction on the interest paid towards the loan.
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- Fostering Financial Discipline & Effective Financial Management
A sense of responsibility can help you become more mindful of your spending habits and make wiser choices, ultimately leading to better savings.
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- Favourable Interest Rates
The demand for bikes continues to rise, prompting lenders to offer competitive interest rates on bike loans. Currently, it is possible to secure a loan with an interest rate as low as 10% per year.
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- Building a Strong Credit Profile
Making timely EMI payments can enhance your credit score. Improving your creditworthiness opens doors for better loan options in the future, such as business or home loans.
Dos and Don’ts of Applying for Two-Wheeler Loan
Read below to get a glimpse of the Do’s and Don’ts to consider when you apply for a Two-wheeler loan.
| Do’s | Don’ts |
|---|---|
| Compare interest rates and terms.. | Don’t borrow more than you can afford to repay. |
| Check your credit score. | Don’t provide false information or documents to the lender. |
| Maintain a good repayment record. | Don’t miss or delay loan repayments. |
| Opt for insurance coverage. | Don’t ignore the loan prepayment and foreclosure. |
| Save for a down payment to reduce the loan amount and subsequent EMIs. | Don’t apply for multiple loans simultaneously. |
| Maintain a budget and allocate funds for timely loan repayments. | Don’t make impulsive buying decisions beyond your repayment capacity. |
Improve Your Chances of Getting a Two-Wheeler Loan
Here are 8 tips that you can practice to improve your chance of getting a two-wheeler loan.
- Check and improve your credit score: You can do this by paying your bills on time and clearing outstanding debts. A higher credit score enhances your loan eligibility.
- Save for a down payment: Having a substantial down payment reduces the loan amount and shows your commitment, making lenders more likely to approve your loan application.
- Compare lenders: Research and compare loan options from various lenders to find the best interest rates and terms that suit your financial situation.
- Maintain stable employment: A steady income and employment history increase your credibility as a borrower, boosting your chances of loan approval.
- Provide accurate information: Ensure all application details and supporting documents are accurate and up to date to avoid rejection.
- Minimize existing debt: Reduce your debt-to-income ratio by paying off existing loans or credit card debts, as this improves your overall financial profile.
- Consider a co-applicant: Adding a co-applicant with a strong credit profile can improve your chances of loan approval and potentially secure better loan terms.
- Demonstrate financial stability: Maintain a consistent financial record, including a regular savings pattern, to showcase your ability to handle loan repayments.
Personal Loans for 2 Wheeler Purchase Vs. Two-Wheeler Loans
Here’s the following table to learn more about Personal loan VS Two-wheeler loan.
| Points of Comparison | Personal Loans for 2 Wheeler Purchase | Two-Wheeler Loans |
|---|---|---|
| Purpose | Can be used for various personal expenses, such as for two wheeler purchase, for car purchase, emergency loan, etc | Specifically designed to finance the purchase of a two-wheeler. |
| Collateral Requirement | Unsecured loans | Secured loans |
| Loan Amount | Typically, higher loan amounts. | The loan amount is directly linked to the cost of the two-wheeler, generally covering a significant portion of the vehicle’s on-road price. |
| Interest Rates | Interest rates are generally higher. | Interest rates are comparatively lower. |
| Repayment Flexibility | flexible in terms of repayment. | Fixed repayment tenures |
How to Apply for a Two-Wheeler Loan with Buddy Loan
Here’s the step-by-step process that you can follow to apply for a two-wheeler loan on Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.
- Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
- Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
- Step 5: Enter your work details (Including company name, years of service and Designation)
- Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
- Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.
Two Wheeler Loan Repayment
Bike loan repayment is pocket-friendly with zero charges. Check out the EMI, prepayment charges, and foreclosure charges offered by different banks to effectively manage your finances. The maximum loan tenure for a two-wheeler loan is 36 months. Generally, it’s about 12-36 months.
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Frequently Asked Questions
Find answers to common questions about this topic