Two Wheeler Loan Interest Rates

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About Two Wheeler Loan Interest Rates

Two Wheeler will be valuable as it removes it your additional charges which go in transports and another vehicle. You don’t need to take a weight while financing it as there is no enormous add up to pay for it.Before feeling free to pick the method of money for your bike, it’s critical to know the highlights of the loan and interest rate winning in the market

Two Wheeler Loan Interest Rates

Check and Compare the Two Wheeler Interest Rates across different banks. Avail the Best one and drive your dream bike home.

Two Wheeler Loan Interest Rates – Updated 2020

Bank Two Wheeler Loan Interest Rates* Processing Fee
SBI 12.65% 1.25% of Loan Amount with Min Rs. 250 and Max Rs. 500
HDFC Bank 14.03% Maximum – 3% of Loan Amount
PNB 10.70% Rs.500 to Rs.1,000
Bajaj Auto Finance 11.60% 1% – 3.5%*
Indusind Bank 12.00% Up to 5% of Loan Amount
Allahabad Bank 11.80% Minimum Rs. 614
Andhra Bank 10.35% Rs.500 to Rs.5,000
Bank Of India 7.75% 1% of loan amount; Rs.500 minimum and Rs.10,000 maximum
Union Bank of India 11.55% NIL
United Bank Of India 11.00% 1 % of the loan amount
Corporation Bank 12.35% Rs.500 onwards
Indian Bank 9.65% NIL
Karnataka Bank 13.85% 0.25% of Loan Amount with Minimum Rs. 250 and Maximum Rs. 1000
Jammu and Kashmir Bank 9.65% 0.50%
Canara Bankl 13.55% Rs.1,000/- and maximum of Rs.5,000

 

Tips for availing best Two Wheeler loan interest rates

Expenses and Charges: Various loaning organizations charge charges including settlement expenses, evaluation expenses, specialist expenses, and advance handling charges. Look at the expenses of various banks before benefiting the two-wheeler advance. Select the advance that gives the most reduced two-wheelers Loan Interest Rates.

FICO assessment and Financially Stability: Various loaning organizations allot the loan cost based on the FICO rating of the purchasers. Customers who have a high FICO assessment score will get low two-wheeler financing costs. Find and think about loan costs through online instruments of examination, which grant borrowers to look at paces of changed money related foundations.

Factors Affecting Two Wheeler Loan Interest Rates:

There are sure factors that either increment or diminishing the two-wheeler credit loan fee in India altogether. These variables are as per the following:

Vehicle Type: The loan cost will rely upon the kind of vehicle you plan to buy. Regardless of whether it is a sulked, a motorbike, or a very good quality bike, the financing costs for every one of these classifications will fluctuate freely.

Pay range: The sum you win really influences the sum you will be at risk to pay as an interest rate. Your salary is one of the boundaries to decide your believability for reimbursements and along these lines influences the interest rate you will be charged.

Credit score: Your credit score greatly impacts interest rates on two-wheeler loans. A credit score is what describes your repayment history. A higher CIBIL score will enable you to avail of an easy two-wheeler loan but a lower CIBIL score would attract a higher interest rate. 

Credit Tenure: The loan residency influences the loan fees, a more extended residency brings a lower financing cost.

Business Type: Self-employed candidates typically draw in a higher rate of interest because of the unsteadiness of the market, while the salaried candidates can benefit from two-wheeler credits at lower rates.

An Effective interest rate (EIR) consists of two components:

  1. The base rate, which remains fixed.
  2. The mark – up rate, which is a small percentage of interest added to the base rate. It varies according to the property. 

Types of Interest Rates

  1. Fixed interest rates
  2. Floating interest rates
  • Fixed-Rate Two-wheeler Loan: The loan EMIs remain constant for the Fixed-rate two-wheeler loans, which means that the rate applicable to the applicant at the time of loan disbursal will remain unchanged throughout the loan tenure, even if the interest rate decreases or increases with time. 
  • Floating-Rate Two-wheeler Loan: The EMI amount for these two-wheeler loans alter with changes in the interest rates with time. It comprises of Index and Spread in which Index is the benchmark rate that alters with RBI’s policy changes and Spread remains constant as it is the additional charge that a bank adds to cover up the risk factor.

Some Basic Tips for A Two Wheeler Loan

  • Look at! It is consistently prudent to look at the banks and pick the one which can be trusted just as which can offer you the best arrangement. This additionally spares you from extortion. Typically, it is ideal to get from the bank where you as of now have a record.
  • Peruse! It is important to peruse the reports and arrangements cautiously so you can know expressly and obviously the conditions of the loan. This is something you can’t settle on as it will spare you from future stuns.
  • Know your privileges! It is consistently helpful to think about your privileges and advantages that you can use for your advantage while profiting from a two-wheeler loan.

How to Get the Lowest Rate of Interest on Two Wheeler Loans

Certain tips and tricks can spare you from paying hefty sums on your home credits. If you follow these practices you can profit the rates of interest in the market.

  • Pay off a substantial Loan Downpayment

    The advance sum is one of the primary factors that influence your two-wheeler advance loan cost. The higher advance sum as a rule pulls in a higher loan cost and the other way around. To get a two-wheeler advance at the most minimal conceivable interest rate, it is fitting to take a stab at taking care of your loan sum by offering more towards your home initial installment.

  • Keep up Excellent CIBIL Score

    CIBIL score otherwise called FICO rating is a pointer of your financial soundness. A high FICO assessment reflects mindful credit conduct and the other way around. It is additionally critical to take note of that candidates with a lower FICO assessment will pay higher enthusiasm on their two-wheeler loan. A higher FICO assessment directs the productivity with which you have taken care of your past credits. Having a decent FICO assessment will permit you to appreciate certain advantages like benefiting the least financing costs in the market.

  • Improve your present obligation status:
    as such, check your obligation to-pay proportion. This gives you the amount of your present pay is going toward reimbursing advances and credit card bills. Pay off existing credits and cut down this proportion. The lower the proportion, the better your odds are of getting acceptable rates.

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