A two-wheeler is the first choice of many Indian households when it comes to buying their first vehicle. Two-wheelers are popular in big and small towns. Motorcycles are considered one of the cheapest and most reliable vehicles for traveling short distances, and they are popular among all age groups.
If you are thinking of buying a two-wheeler, you can either self-finance it or take out a two-wheeler loan. Almost all banks offer two-wheeled loans to existing and new customers. A two-wheeler loan helps you buy a motorcycle or scooter.
Before applying for a two-wheeler loan, you must first do some due diligence on the vehicle and choose your options. Once you have done this, you need to check the price of the vehicle and see if it fits your budget. You can check out multiple vehicles, compare their price, and see what meets your needs in terms of vehicle price, mileage, look and feel.
Next, you need to check the banks that meet your eligibility criteria and are ready to provide you with the necessary funds to purchase the vehicle of your choice. You can complete the loan application form through the bank’s mobile app or website. You can also go to the bank branch and apply for a two-wheeler loan.
Make sure you do your research well. Compare all options such as interest rates, processing fees, repayment options and other loan terms that lenders offer you. It will help you choose the best product according to your needs. Your interest rate determines the overall cost of your loan. It also impacts your NDE. According to BankBazaar, choosing a low-interest loan can help keep your EMIs low and make your loan cheaper.
The term of your loan is another important factor as it determines how much you need to repay each month. Make sure you can afford your IME. This means that you must be careful in choosing your mandate. A shorter term will help repay the loan faster. But your NDEs will be high. Therefore, choose the amount of EMI that you can afford to pay each month without facing a financial crisis.
When comparing your loan options, be sure to compare the respective EMIs. Choose a loan that gives you an affordable EMI with a convenient repayment period. If you plan to prepay or cancel your two-wheeler loan at any time, find out about the corresponding fees. Some lenders may charge you a fee for this, some may not. Paying off your loan early can help reduce interest costs.
Read your loan offer document carefully before signing it. The fine print can reveal hidden charges. Knowing these fees helps you avoid paying hefty penalties.
Most lenders will offer you a loan for only 80% to 90% of the value of the vehicle. You will have to pay the rest of the money out of your own pocket. Some lenders offer 100% financing with additional conditions.
Remember that if you don’t pay the EMIs on time, the bank may repossess your vehicle. Your bicycle or scooter being mortgaged, the bank is entitled to confiscate your vehicle to repair the losses suffered.
If you want to take out a two-wheeler loan, check out the table below which lists the major banks that are currently offering some of the lowest interest rates on two-wheeler loans. This table includes only the lowest advertised rates for each bank listed. The applicable interest rate may differ and depends on your age, income, credit score and your lender’s eligibility criteria. The table below also includes indicative EMIs for a two-wheeler loan in the amount of Rs 1 lakh taken for three years for each bank.
Interest Rate and EMI on Two Wheeler Loan Rs 1 Lakh for 3 Year Term
Compiled by BankBazaar.com
Note: Two-wheeled vehicle loan interest rates for all listed public and private banks (BSEs) considered for data compilation (except foreign banks and small finance banks); Banks whose data is not available on their website are not taken into account. Data collected from respective bank’s website as of April 12, 2022. Banks are listed in ascending order based on interest rate, i.e. the bank offering the lowest interest rate on the loan two wheels is placed at the top and the highest at the bottom. The lowest interest rate offered by banks on two-wheeled loans is shown in the table, regardless of the amount and term of the loan. The EMI is calculated on the basis of the interest rate mentioned in the table for the Rs 1 Lac loan with a duration of 3 years (processing fees and the like are assumed to be zero for the calculation of the EMI); The interest mentioned in the table is indicative and may vary depending on the general conditions of the bank.^Rack Interest Rate; ^^ Min APR during the third quarter of fiscal year 2021-22.