A Two-Wheeler Loan Helps You Buy Motorcycles or Scooters with Easy EMIs. While Some Banks Offer Full Financing, Others Provide Partial Coverage of the Vehicle's Road Price.

Axis Bank

11.00% p.a. onwards

Rs.25,001 onwards

From 0.5% of the loan amount (processing Fee)

Punjab National Bank

11.15% p.a. onwards

Rs.1.50 lakh to Rs. 10 lakh

Contact the bank

Union Bank of India

12.15% p.a. onwards

Up to Rs.10 lakh

Contact the bank

HDFC Bank

14.50% p.a. onwards

Contact the bank

2.5% of the loan amount (processing Fee)

State Bank of India

12.80% p.a. onwards 

Rs.20,000 to Rs.25 lakh

2.00% of the loan amount + GST (minimum of Rs.1,000)

AU Small Finance Bank 

Up to 28.00% p.a. 

Contact the bank 

Up to 4% of the loan amount(processing Fee)

With a Two-Wheeler Loan, You Can Own a Motorcycle or Scooter Wi or Sport Bike . While Some Banks Offer Financing for the Entire Road Price, Others May Finance Only a Portion of It. Enjoy a Simple and Quick Approval Process, and Benefit from Lower Interest Rates If You Have a High Credit Score.

1. Get loans for both regular two-wheelers as well as superbikes.
2. Minimum income is Rs.12,500
3. Minimum loan amount that can be availed is Rs.20,000.
4. Repayment tenure of up to 3 years.

1. Get financing of up to 100% of the value of your vehicle.
2. Minimum monthly income required is Rs.10,000
3. Enjoy flexible repayment options.
4. Get fast and easy loan approvals and disbursements.
5. Online loan application process.

1. Special two-wheeler loan scheme for women borrowers.
2. Extended repayment period of up to 5 years (60 months) for scooters and motorcycles.
3. Low minimum monthly income criterion.

1. The bank offers up to Rs.10 lakh for purchasing two-wheelers.
2. There is no prepayment fee if you prepay using your own funds.
3. No prepayment penalty
4. Hypothecation of vehicle purchased out of bank's finance
5. No guarantee required for individual borrowers with CIBIL score of 700 and above
6. Zero processing fee
7. Repayment tenure of up to 3 years.

1. Get financing of up to 100% of the value of your vehicle.
2. Repayment tenure of up to 4 years.
3. You can apply online for a two-wheeler loan.
4. Minimal documentation required

1. The processing fee is low. 
2. You can apply for the loan online. 
3. Up to 100% of the on-road price of the bike may be provided as a loan. 

Lenders have certain eligibility criteria they expect you to fulfil before they process your application. These may vary from one lender to another. Some of the general eligibility criteria are as follows:

Requirements

Salaried Individuals

Age

1. Minimum - 21 years at the time of application
2. Maximum - 65 to 70 years at the end of the loan tenure

Self-employed individuals

1. Minimum - 21 years at the time of application
2. Maximum - 65 to 70 years at the end of the loan tenure

Salaried Individuals

Monthly income

Rs.7,000

Self-employed individuals

Rs.6,000

Salaried Individuals

Credit score

Above 750

Self-employed individuals

Above 750

Salaried Individuals

Loan amount

Up to 100% of the value of the vehicle

Self-employed individuals

Up to 100% of the value of the vehicle

Residential stability

Must be staying at the current address for at least 1 year

Salaried Individuals

Must be staying at the current address for at least 1 year

Work experience

At least 1 year

Self-employed individuals

At least 1 year

Note: These criteria may be different for different lenders. Check with the lender of your choice before applying.

Every lender requires you to submit certain documents while applying for a loan. Some of the general documents required are given below:

Particulars

Salaried Individuals

Identity Proof

PAN card, voter's ID, passport, driving license

Self-employed individuals

PAN card, voter's ID, passport, driving license

Address Proof

Utility bills, passport, etc.

Self-employed individuals

Utility bills, passport, etc.

Income Proof

Salary slips, IT returns, bank statements

Self-employed individuals

Bank statements, IT returns, audited financial statements

Note: The documents required may differ from one lender to another. Check with your lender for what they require you to submit.

Applying for a two-wheeler loan can be a convenient way to finance your purchase, but it’s important to keep certain points in mind to ensure a smooth process and avoid unnecessary financial strain. Here are some key points to remember:

• A good credit score increases your chances of loan approval and may help you secure a lower interest rate.
• Check your credit report for errors and resolve them before applying.

• Research and compare interest rates, loan terms, and processing fees from different banks, NBFCs, and online lenders.
• Look for pre-approved offers if available.

• Calculate the total cost of the loan, including the principal amount, interest, processing fees, and other charges.
• Use an EMI calculator to understand your monthly repayment obligations.

• A longer tenure reduces your EMI but increases the total interest paid.
• A shorter tenure means higher EMIs but lower overall interest costs.
• Choose a tenure that aligns with your repayment capacity.

• Ensure you meet the lender’s eligibility requirements, such as age, income, employment type, and credit history.
• Some lenders may have specific requirements for self-employed individuals.

• Commonly required documents include:
  • Identity proof (Aadhaar, PAN, passport, etc.)
  • Address proof (utility bills, rental agreement, etc.)
  • Income proof (salary slips, bank statements, ITR, etc.)
  • Photographs
• Having these ready can speed up the loan approval process.

• Most lenders finance up to 85-90% of the two-wheeler’s cost, so be prepared to pay the remaining amount as a down payment.
• A higher down payment can reduce your loan amount and EMIs.

• Carefully review the loan agreement for hidden charges, prepayment penalties, and other terms and conditions.
• Clarify any doubts with the lender before signing.

• Lenders often require comprehensive insurance for the two-wheeler as part of the loan agreement.
• Factor in the insurance cost when calculating your total expenses.

• Check if the lender allows prepayment or foreclosure of the loan without hefty penalties.
• This can help you save on interest if you decide to repay the loan early.

• Applying for loans with multiple lenders simultaneously can negatively impact your credit score.
• Instead, compare lenders and apply to the one that best suits your needs.

• Don’t hesitate to negotiate interest rates, processing fees, or other terms with the lender, especially if you have a good credit profile.

• Ensure you have a repayment plan in place to avoid defaults or late payments, which can harm your credit score.
• Set up automatic payments or reminders to stay on track.

• If the loan terms are unfavourable, consider alternatives like personal loans or saving up to make a full payment.