The affordable bike loan interest rate, ease and flexibility of a bike loan help you cover the actual price of the two-wheeler in small and affordable instalments.
Hyderabad: A bike is an efficient means of transport, whether you need to go grocery shopping or commute to work. The mobility of two-wheelers makes them a popular choice among the Indian population. Adding to that, affordable bike loans available in the market make purchasing a two-wheeler easier and more convenient.
A recent survey reveals that the portfolio of two-wheeler loans increased by 10.6% every year. The affordable bike loan interest rate, ease and flexibility of a bike loan help you cover the actual price of the two-wheeler in small and affordable instalments.
However, with India’s bike loan interest rate ranging from 6.85% to 28.30%, you need to make an informed choice when choosing a lender. To help you with that, here are some essential facts about bike loans and a few smart options to consider.
Features of Bike Loans
Bike loans work similarly to personal loans, wherein you borrow a specific amount to purchase a two-wheeler. Then, you have to repay the principal amount along with the interest levied until the loan tenure is complete.
Here are some essential features of bike loans you must know:
Aside from these features, it is important to note that the bike loan interest rate depends on various factors such as:
For instance, if you have an excellent credit history, you stand a better chance of getting a bike loan at low interest rates. Remember that your employment type is also crucial in determining your bike loan interest rate.
Lenders set different criteria for salaried and self-employed professionals. Hence, when zeroing in on a lender, you need to consider all these factors. Furthermore, your age and annual income are other deciding factors when getting loan approval.
If you are closer to the retirement age, the bike loan interest rate can increase. Apart from these factors, the relationship with the lender has a significant say in deciding the interest rate.
Popular Bike Loan Options of 2023
While you are familiar with some important features of two-wheeler loans, know that the bike loan interest rate is comparatively lower than a personal loan or a credit card. Hence, weighing the pros and cons of these loan options is prudent before selecting a lender.
To help you with that, here are some loan options from a few NBFCs and banks. Check the table and choose a lender that best aligns with your financial goals.
Bank/NBFC | Interest Rates |
Axis Bank | 16.50% – 24.00% |
Bajaj Auto Finance | Starting at 11.20% |
Mahindra Finance | 6.00%-25.75% |
HDFC Bank | 20.90% |
L&T Finance | 7.99% – 15.00% |
Punjab National Bank | 12% |
State Bank of India | Starting from 11.75% |
Union Bank of India | 12.50% |
Disclaimer: Above-mentioned interest rates are subject to change at the lender’s discretion. Hence, kindly check with the lender before availing a two-wheeler loan.
Eligibility Criteria for a Bike Loan
After comparing the interest rates across lenders, you must check the eligibility parameters before availing a bike loan. With different lending institutions setting varying criteria, here are some of the most common parameters you must meet:
While a credit score of 700 can get you a loan sanction, lenders prefer a good score of 750 or above. This can help you get a loan at a nominal interest rate.
Documents Required When Availing a Bike Loan
Submit the following documents after you check your eligibility and get loan approval.
ID Proof (any one)
Address Proof (any one)
Proof of income
Latest passport-size photographs
Tips to Improve Your Loan Eligibility
While securing a bike loan is easy and hassle-free, meeting the eligibility criteria is crucial. Here are some essential tips that can expedite the process of availing a loan.
Now that you know a few essential facts about bike loans and the top options available in 2023, make an informed choice when choosing the lender. Compare the bike loan interest rates and select a financial institution offering loans on favourable terms.