Buying a bike or scooter is a major step toward mobility and independence, especially in Indian cities and towns. But most people can’t afford to pay the full cash amount up front. That’s where a two-wheeler loan in India becomes important. Whether you’re eyeing a fuel bike or an electric scooter, several two-wheeler loan schemes help you finance it with minimal upfront cost. In this guide, we’ll cover top two-wheeler loan schemes, eligibility, interest rates, tips to get better terms.
Why Two Wheeler Loan Schemes Matter
- Makes owning a bike easier with flexible EMIs instead of lump sum payments
- Many schemes offer zero down payment bike loans or low initial deposit
- Enables budget planning — you know monthly outflows
- Helps build credit history if repaid on time
- Competition among banks & NBFCs keeps interest rates and fees in check
Current Two Wheeler Loan Interest Rates & Leading Lenders
As per data from BankBazaar, rates for two-wheeler loans in India currently range broadly depending on the lender, credit profile, the model (petrol/electric), and loan amount.
Here are some benchmark rates and features from prominent lenders (Bike loan interest rates India):
| Lender / Bank | Minimum Interest Rate | Typical Loan Range | Processing Fee / Notes |
|---|---|---|---|
| Bank of India | ~ 8.75 % p.a. | up to ₹50 lakh | Contact bank for fee |
| IDFC First Bank | ~ 8.50 % p.a. | — | ~5% processing fee |
| ICICI Bank | ~ 10.50 % p.a. | — | up to 4% of loan amount |
| Axis Bank | ~ 10.50 % p.a. | ₹25,001 onward | 0.5% of loan amount |
| PNB (Punjab National Bank) | ~ 10.75 % p.a. | — | — |
| HDFC Bank | ~ 14.50 % p.a. | — | 2.5% processing fee |
| SBI | ~ 12.85 % p.a. | ₹50,000 to ₹25 lakh | 2% of loan + GST (max ₹10,000 + GST) |
Note: These are approximate rates. Exact rates will vary depending on your credit score, lender tie-ups, your existing banking relationship, model of bike, etc.
Besides banks, several NBFCs and financial institutions (e.g. Bajaj Auto Finance, TVS Credit, Hero FinCorp, Home Credit) provide two-wheeler loans with more flexible norms or faster approvals.
Also, electric two-wheelers (e-bikes, scooters) are increasingly eligible under same schemes, often at competitive rates, encouraging green mobility.
Top Two Wheeler Loan Schemes & Offers
Below are some key schemes and offers you should highlight:
Zero Down Payment Bike Loan
Many lenders and financiers run promotions where you don’t pay any down payment up front — you start paying directly via EMIs. Advertised heavily during festive seasons or new launches.
Subsidy & Government Schemes for EVs
Some states or central government schemes offer subsidies or preferential financing for electric two-wheelers. Lenders may pass on incentives or lower interest rates under green mobility schemes.
Existing Customer / Relationship Discounts
If you already hold a savings account or other loans with the bank, they may grant you a reduced interest rate on your bike loan.
Low-Rate Promotional Offers
Banks might temporarily reduce interest or waive processing fees during festivals or special corporate tieups.
Flexible Tenure Schemes
Tenure may range from 12 months up to 60 months (5 years) in some cases. Longer tenure means lower EMIs but more interest payment cumulatively.
Top Up / Add-On Finance
Some lenders allow top-ups later (for maintenance, accessories). But these add to interest burden.
Eligibility Criteria for Two Wheeler Loans
Most banks and NBFCs require the following:
- Indian citizenship
- Age: Typically 18 – 65 years
- Stable income: Salaried / self-employed proof
- Minimum monthly income threshold (depends on lender)
- Credit score (CIBIL / Experian) – better score = better interest
- Identity & address proof / PAN / Aadhaar
- Bank statements / Income proof / Employment proof
- Vehicle documents (dealer invoice, registration papers) at disbursal stage
How Interest Rates Are Determined
Several factors impact the interest rate you’re offered on a two-wheeler loan:
Credit Score / Credit history — A key lever: better score → lower rate
Income level & stability — Higher, steady income gives better bargaining power
Employment type — Salaried in reputed firm often gets better terms than self-employed
Existing relationship with lender — If you bank with them, you may get preferential rate
Loan amount & tenure — Larger loans or longer tenure may carry slightly higher spreads
Model / Type of vehicle (Electric vs Petrol / High vs Low CC) — Risk perception varies
Down payment or security / guarantee — If you can arrange a small deposit or guarantee, it may improve rate
Calculating EMI for Your Two-Wheeler Loan
EMI (Equated Monthly Installment) is calculated based on:
- Principal (loan amount)
- Interest rate
- Tenure
Most two-wheeler loan calculators show you per month payment and amortization schedule.
While evaluating options, don’t just focus on the lowest interest also factor in processing fees, prepayment charges, hidden costs, and supporting features like part payment, foreclosure, etc.
Tips to Get the Best Two Wheeler Loan Deal
To get the best two-wheeler loan deal in India, focus on strengthening your financial profile before applying. A good credit score not only improves approval chances but also helps you secure lower interest rates. Opting for a shorter tenure, even with slightly higher EMIs, reduces the total interest paid. Negotiating processing fees, making a small down payment, and leveraging your existing banking relationship can also bring significant savings.
Additionally, always compare offers across banks and NBFCs instead of accepting the first one. Apply during festive seasons or promotional periods, especially for electric bike loan schemes, to enjoy special discounts. Ensure you provide complete and accurate documents to avoid rejections or extra charges, and always choose a reliable lender with good customer service for a smooth loan experience.
Latest Post
