A Two Wheeler Loan is a financial help offered by banks and NBFCs to fulfill your dream of having your two-wheeler. The banks provide necessary funding for purchasing a two-wheeler, whether the regular two-wheelers or superbikes. You can pay for the vehicle in easy monthly installments.
Add two wheels in your life. Get the Best Two-wheeler Loan and drive your own vehicle. Save your valuable time. No frequent visits to any bank. The best two-wheeler loan according to your needs will knock at your door. Avail your Loan without any hectic procedure and cherish your life with your loved ones.
Two Wheeler Loan Interest rate:
Two-wheeler loan interest rates, processing fee and benefits for various banks are as follows:
|Bank||Interest rate||Processing fee||Benefits|
|HDFC||11.42% to 22.45% p.a||maximum of 3% of the loan amount||1. Flexible repayment options|
|2. Loan amount to fund 100% of the price|
|3. quick approval and disbursal|
|Bank of India||7.85% p.a.||1% of the loan amount||1. repayment period of up to 5 years|
|2. quick approval (about 15 minutes)|
|State Bank of India||16.45% p.a.||variable||1. Minimum income requirements|
|2. Finances up to 90% of your two-wheeler price|
|3. Affordable EMIs and interest rates|
|Punjab National Bank||9.8% p.a.||0.5% of the loan amount||1. option to extend repayment tenure for up to 5yrs|
|2. special schemes for women borrowers|
|3. low income and credit score criteria|
|Andhra Bank||10.05% to 10.30% p.a||1% of the loan amount + taxes||1. low loan processing fee|
|2. up to 85% funding for everyone|
|3. up to 90% funding for women|
|Union Bank of India||10.30% p.a.||0.50% of loan amount + taxes||1. up to 85% funding available|
|2. up to Rs.10 lakh offered|
|3. 0 prepayment fee (provided you prepay from your own funds.|
|Indian Bank||12.10% p.a.||0.23% of the loan amount||1. up to 85% funding|
|2. low processing fee|
|3. repayment tenure of up to 5yrs|
|Corporation Bank||10.25% p.a.||0.50% of the loan amount||1. up to Rs. 1 lakh offered|
|2. low processing fee|
|3. The loan amount is provided for insurance, registration, accessories etc.|
|Canara Bank||10.45% p.a.||0.25% of the loan amount||1. repayment tenure extended up to 7 years|
|2. low processing fee|
|3. special interest rates for women|
Comparison of Two wheeler Loan in India
|Bank||Two Wheeler Loan Interest Rates||Lowest EMI Per ₹ 10 Thousand For Max Tenure|
|Axis Bank||10.85%||₹ 217 for 5 years|
|SBI||16.05%||₹ 352 for 3 years|
|HDFC Bank||9.10%||₹ 249 for 4 years|
|PNB||9.55%||₹ 210 for 5 years|
|Bajaj Auto Finance||13.26%||₹ 338 for 3 years|
|IndusInd Bank||21.00%||₹ 377 for 3 years|
|Allahabad Bank||10.40%||₹ 214 for 5 years|
|Andhra Bank||9.90%||₹ 212 for 5 years|
|Bank of India||7.45%||₹ 200 for 5 years|
|Union Bank of India||9.90%||₹ 322 for 3 years|
|United Bank of India||9.55%||₹ 210 for 5 years|
|Corporation Bank||9.90%||₹ 322 for 3 years|
|Indian Bank||10.40%||₹ 214 for 5 years|
|Karnataka Bank||8.48%||₹ 205 for 5 years|
|Jammu And Kashmir Bank||8.70%||₹ 206 for 5 years|
|Canara Bank||9.00%||₹ 318 for 3 years|
Two Wheeler Loan: Features and Benefits
- It makes your purchase of a two-wheeler affordable and prevents it from becoming a burden on your finances.
- The process of availing a loan with Dialabank is simple, time-saving, and hassle-free.
- Flexible repayment options are offered by the bank.
- It is characterized by a speedy approval in 15 minutes.
- The offered loan tenure extends up to 48 months and can be extended up to 7 years, depending on the bank. You are at liberty to choose your own tenure.
- Attractive interest rates and affordable EMIs are offered.
- Minimum documentation is required for this two-wheeler loan and thus gets disbursed quickly.
- You also have the option of getting a guarantor for yourself to get the desired loan amount.
Eligibility for Two Wheeler Loan:
Following is some basic eligibility criteria for a two-wheeler loan:
|Minimum and Maximum Age||minimum age – 21 Yrs., maximum age – 65 Yrs.
Note: However, many banks require a minimum age of 18 years
|Loan Amount||Up to ₹ 10 Lakh. Some banks give maximum loan up to ₹ 50 Lakh
Note: Loan amount depends upon the value of the two-wheeler and the EMI you can pay
|Net Monthly Income||Min. ₹ 18,000 per month|
|Employment Type||for both Salaried and Self Employed applicants, the Interest rates are typically in the range of 7.75% to 29.00% per annum|
|Minimum Work Experience||1 year of total work experience
Business tenure should of 5 years & ITR required for at least 2 years (For the Self Employed)
|CIBIL Score for Two-wheeler Loan||600 & more credit history
Note: Most banks avoid giving loans if you have a low credit score, or even if they do, they charge a higher interest rate
Documentation required for Two Wheeler Loan:
These are the documents you require:
|Documents ID||Individuals||Firms, Partnerships|
|Signed Application Form||Required||Required|
|Identity Proof||basic KYC documents like your PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card|
|Certificate and Proof of Business Existence||
PAN, sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
|Address Proof||Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old)||
Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter
|Age Proof||PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate|
|Income Proof||Form 16, last 3 months salary slip, last 3 months bank account statement showing salary credit||
Last 2 years ITR, last 3 months bank account statement
|Two-wheeler quotation||Quotation of cost of two-wheeler selected from the dealer|
Two Wheeler Loan EMI calculator
Dialabank brings to you the facility of an EMI calculator for a two-wheeler loan wherein you can calculate your EMIs without any hassle, making it easier for you to plan your repayment. You just need to enter your principal loan amount, loan tenure in months, and the interest rate. Make sure you also enter extra details like the processing fee charged by the banks, as well as your prepaid EMIs.
After clicking on ‘calculate’, your EMIs will be calculated and shown to you.
EMI for Two-wheeler Loan
The EMI on a two-wheeler loan is the monthly payment you make to the bank or financial institution to repay your loan. The principal amount, as well as an interest portion, make up an EMI. Your EMI’s interest component is higher in the beginning and decreases with each EMI. The two-wheeler Loan EMI Calculator assists you in calculating your monthly EMI for a given tenure at the desired interest rate.
- Bicycle with two wheels The loan EMI is determined by the loan number, interest rate, and loan term.
- Loan sum – If you apply for a large loan, the EMI for a bike loan would be large. Interest rate – A higher interest rate on your loan means a larger EMI.
- Loan tenure – In the case of long loan tenure, the EMI on a bike loan is lower.
What are the advantages of taking a two-wheeler loan?
Applying for a loan to purchase the bike you’ve always wanted can have a range of advantages. Among them are the following:
- Obtain the funds needed to purchase the bike of your choice.
- To get the money you need, use a guarantor or co-applicant.
- Obtain funds for the purchase of superbikes as well.
- Obtain low-interest rates.
- You can choose from a variety of loan repayment periods.
- Repay your loan in manageable instalments.
- Pay all of your EMIs on time to improve your credit score.
Some Tips to Remember for a Two-wheeler Loan
- Compare! Make sure you compare the facilities and features of a two-wheeler loan offered by various banks and choose the one which fits best for you.
- Choose the right tenure and interest rate for yourself, only those which help you repay your two-wheeler loan on time. If you choose a lower term, your EMIs might become a financial burden, so is the case with high interest rates.
- Some banks might offer you floating interest rates too. Choose the option of floating rates only if you are confident that you will be able to pay your EMIs in a timely fashion even if the lending rates increase.
- Do your research on the lender. Make sure the lender is a trustworthy one to save yourself from fraud. The best option is always to borrow from the bank where you already have an account as it helps you to avail some special benefits.
- Know your rights! Make sure you avail of all the benefits you are eligible for such as tax reductions, special interest rates etc.
- Check your documents and eligibility properly before you apply for a car loan for a smooth application.
- Calculate your EMIs beforehand to know which loan offer will be the best for you. This will help you in your loan repayment management too.
- Read your documents properly, even the fine print. This will save you from future shocks and will make you aware of all the charges your lender is taking from you.
|Things you should do||Things you should avoid|
|Do your research well before you apply and avail of only the best offer.||You shouldn’t apply for loans with different lenders at the same time as it affects your Credit score negatively.|
|Make sure you fulfil all the aspects of the eligibility criteria.||Don’t be shortsighted and apply for a loan simply because you get an attractive welcome gift. The same lender might not provide you with other important facilities.|
|Compare interest rates and find the option which provides for affordable interest rates and EMIs.||Don’t forget to fill in the application form properly. In case you miss anything important, it will create unnecessary problems for you.|
|Compare processing fees and other extra charges. Make sure you don’t have to pay anything unnecessary.||Do not sign the loan documents without reading them thoroughly.|
|Evaluate your credit score and if you don’t match the minimum score criteria, follow the tips to improve it.||Don’t choose a loan offer you cannot afford.|
|Submit all the required documents without fail for a smooth acceptance.||Don’t forget to pay your EMIs on time, otherwise, your CIBIL score will be affected.|
|Pay a huge down-payment if you can as this will help reduce the burden of your EMIs.||Don’t forget to prepay your loan if you can as this will, again, reduce your EMI burden.|
How Can You Avail Some Best Offers?
- Improve your CIBIL score: A CIBIL score is a three-digit score that determines your credit history and your ability to repay loans. The higher the CIBIL score, the more trustworthy you will be as a borrower and banks will be willing to offer you better offers. You can improve your credit score by applying for short term loans and repaying them on time, by applying for a credit card etc.
- Don’t look needy: Do not apply for multiple loans all at once as this will affect your CIBIL score negatively and discourage the banks from offering you better loan deals.
- Take care of your income: credit ratio: The income: credit ratio determines what proportion of your income you are using to repay your loans. If this rate is low, it will show the banks that it is easy for you to repay loans and hence they will offer you better deals.
- Get a guarantor: It is always advisable to get yourself a guarantor while availing of a two-wheeler loan as this makes the banks trust that the loan they are offering you will be repaid by you.
When Should You Take a Two Wheeler Loan?
Obtain two-wheeler loans during the holiday season because lenders can waive transaction fees and provide free insurance. The following are some of the uses for a two-wheeler loan:
- Personal use: A person may get a bike loan if they need a two-wheeler for personal reasons.
- If a person’s business necessitates the use of a two-wheeler, a two-wheeler loan is a good idea because it can expand a person’s scope in terms of distribution and transportation. If you take out a two-wheeler loan for business purposes, you might be eligible for tax benefits.
How to improve your chances of getting a two-wheeler loan
- Clean up your credit: When reviewing your loan application, lenders pay close attention to your credit score. You have a great chance of getting the loan you want if you have a high credit score. Review your credit report on a regular basis to see if you’ve made any mistakes. Taking corrective action will assist you in repairing your credit.
- Maintain a healthy debt-to-income ratio: Your debt-to-income ratio measures how much debt you have compared to how much money you make. It shows how much of your monthly income is actually going toward loan and bill repayment. The lower your debt-to-income ratio, the higher the chances of receiving a loan. So, before you apply, think about paying off a few loans.
- Obtain co-signers if necessary: Having a co-applicant for your loan will often help you get what you want. This is particularly beneficial if you have a bad credit score. You can also have someone else guarantee the loan in your place. Keep in mind that if you don’t repay the loan on time, the co-applicant and guarantor will be held responsible.
- Don’t apply for more than one loan: When you apply for several loans at the same time, lenders realise you will not be able to take the loan they give. This will result in your application being rejected. Keep in mind that multiple rejections may have a negative impact on your credit score.
How to Apply for Two Wheeler Loan?
Get the Best Two Wheeler Loan with Dialabank. Avail doorstep services and get instant approval in 15 minutes. Apply Online through the Dialabank website by filling in a form with your personal details. Our contact manager will give you a call and guide you further.
To apply offline, you will have to visit the branches of various banks and NBFCs which will be hectic for you. In case of any doubt, you can call us at 9878981166 or visit the Dialabank branch in your vicinity.
FAQs for Two Wheeler Loan:
✅Why should I apply for a two-wheeler loan?
Owning a two-wheeler can make you feel confident and independent, however, to pay for it out of your own pocket can make it a financial burden for you. A two-wheeler loan helps you pay for the vehicle through easily affordable monthly payments.
✅Can a two-wheeler loan fund my vehicle purchase completely?
Most banks offer to fund up to 85% or even 90% of the vehicle cost. However, few lenders even fund for the 100% amount but charge some additional costs and add some conditions to it.
✅What costs will a two-wheeler loan cover?
A two-wheeler loan will cover the registration charges, insurance, as well as accessories. You can get even more benefits if your bank has a tie-up with a particular two-wheeler company.
✅Can I choose my own tenure?
Absolutely! You are at liberty to choose your own tenure so make sure you choose the one which makes your repayment affordable. The longer your tenure, the lesser will be your EMI amount.
✅What are fixed and floating interest rates?
Fixed interest rates remain constant throughout the loan tenure and shield you from the fluctuating lending rates while floating rates vary according to the lending rates. Floating rates are helpful when the lending rates decrease but also cause a disadvantage when rates increase.
✅How is loan prepayment helpful?
Loan prepayment is when you pay EMIs on a partially disbursed amount. This helps you reduce the burden of your future EMIs. However, some banks may charge you a prepayment fee.
✅Do I have to give a collateral to the bank for a two-wheeler loan?
No, you don’t. Till the time you repay your loan, your vehicle will act as collateral. Hence you cannot sell off your two-wheeler before you repay the entire loan amount because until then, your vehicle will be in possession of the banks.
✅Can I get a loan without an income?
Yes, you can! this is where a guarantor helps you. In these cases, the loans will be offered to you on the basis of the income of your guarantor.
✅What will happen if I’m not able to repay my loan on time?
If you don’t repay your loan amount on time, the banks will be liable to sell off your bike to recover the lost debt. Your CIBIL score will be impacted negatively making it difficult for you to avail of loans in the future.
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