Which bank is best for two wheeler loan in India

Which is the best bank for two wheeler loan in India: Indians have always loved two wheeler vehicles – be it for commuting, racing, long drives or just for fun. This is the reason why many people opt for a two-wheeler loan.

Two wheeler loan in India can be availed from many banks, NBFCs, digital lending portals etc. Due to intense competition amongst the lenders, there are a lot of options available for availing the loan. Hence, it can be difficult to choose the best two-wheeler loan for your needs. In order to know which bank is best for two wheeler loan, here is what is being discussed.

Top Banks for Two Wheeler Loan in India

No.1 Bank Of India (Two Wheeler Loan)

Bank of India is known to offer the lowest interest rates on two wheeler loans in the country. Bank of India also offers bike loans for second hand or used two-wheelers. Some of the salient features of the two-wheeler loan offered by this bank are as follows:-

grade description
loan amount One can get up to 85% of the bike’s on-road price subject to the maximum limit prescribed by the bank.
Rate of interest 7.35% to 8.05%
repayment period up to 5 years
processing fee 1% of the loan amount (Min. 500, Maximum Rs. 10,000)
eligibility Minimum 21 years and Maximum 65 years

No. 2 Jammu and Kashmir Bank (Two Wheeler Loan)

Attractive interest rates are available on Jammu and Kashmir Bank Two Wheeler Loan but it does not sanction loans for used two wheeler vehicles. Key Features of Jammu and Kashmir Bank Two Wheeler Loan are:-

grade description
loan amount Minimum Rs. 25,000

Maximum Rs. 2,50,000

Rate of interest RLLR+2.00% (Fixed) RLLR+1.50% (Floating)
repayment period up to 5 years
processing fee 1% of the loan amount (Min. 500, Maximum Rs. 2,000)
eligibility Minimum age should be 18 years (16 years for borrowers who want to buy scooter with engine capacity above 55cc). The borrower should have a valid license. The maximum age is 60 years for salaried individuals (65 years for all others). The minimum annual income should be Rs 1 lakh, for taking loan of vehicles costing more than Rs 75,000 and Rs 2 lakh for bikes costing more than Rs 75,000.

No.3 PNB Two Wheeler Loan

Punjab National Bank offers two wheeler loan popularly known as PNB Power Ride. It is specially designed for women borrowers. The main features of this loan are as follows:-

grade description
loan amount 90% of the ex-showroom price of the two wheeler.
Rate of interest 8.45% to 9.80%
repayment period up to 5 years
processing fee 0.50% of the loan amount (Min. 500, Maximum Rs.1,000)
eligibility Minimum age should be 18 years and maximum 65 years. Minimum monthly income Rs.10,000 for men and Rs.8,000 for women

No. 4 SBI Two-Wheeler Loan

State Bank of India offers two wheeler loan at slightly higher interest rate as compared to other banks. However, the loan tenure is fixed at 3 years only whereas the tenure of other banks is normally 5 years. Some of the salient features of SBI Two Wheeler Loan loan are as follows:-

grade description
loan amount Up to 85% of the on-road price of the two-wheeler is available.
Rate of interest 16.25% to 18.00%
repayment period up to 3 years
processing fee 0.50% of the loan amount (Min. 500, Maximum Rs.1,000)
eligibility Minimum age should be 21 years and maximum 65 years. Minimum annual income of the borrower is Rs 75,000 (for regular scooter or motorbike), and Rs 60,000 (for battery operated bike or moped)

No.5 United Bank Of India Two-Wheeler Loan

United Bank of India gives loan for purchase of new two wheeler or scooter and not for second-hand variants. The main features of the bike loan offered by this bank are:-

grade description
loan amount 85% of the on-road price of the two-wheeler.
Rate of interest 16.25% to 18.00%
repayment period up to 3 years
eligibility Minimum age should be 21 years and maximum age should be 65 years. Minimum annual income of the borrower is Rs 75,000 (for regular scooter or motorbike), and Rs 60,000 (for battery operated bike or moped)

How to take two wheeler loan at low interest rates?

If you apply for a two wheeler loan, your aim should be to take it at the lowest interest rate. Here are some useful tips to get a bike loan at attractive interest rates:-

High Credit Score: Your credit score plays an important role in getting the lowest interest rate. Therefore, you should consider looking at your credit history and taking the right steps to improve it. If you have a bad credit score, you can work on improving it before applying for a new bike loan.

Lowering your total loan: Before opting for a bike loan, make sure to check your DTI (loan-to-income) ratio. This is a measure of how much debt you have in relation to your total income. DTI helps you find out how much of your current income is being used for paying loan and credit card bills. You should start paying off the existing loan to reduce this ratio as much as possible. The smaller the DTI ratio, the better your chances of getting a bike loan at lower interest rates.

Negotiation: Sometimes, you must negotiate with your bank to get a better interest rate. This can prove to be helpful especially if you are not able to meet all the eligibility criteria. For example, if your income does not match the eligibility criteria, but you are expecting a salary increase, you can provide proof of this and negotiate your interest rate.

Take a loan from a bank with which you have a previous relationship: If you have a savings account with any bank, you can get a two wheeler loan from the same. You can get a good deal here but it depends on the kind of relationship you are able to maintain with the bank.

The main objective of comparing two wheeler loan interest rates is to know the full cost of the loan and get the best possible interest rate. This will allow you to calculate your repayment options including EMI, tenure etc. Once you have listed your options, you can compare and choose the best one. Other parameters like processing fee, repayment tenure can also be considered while finding the loan best suited for your requirement.

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Frequently Asked Questions on Two Wheeler Loan in India

What is the tenure of two wheeler loan?

The tenure of two wheeler loan is usually around 5 years.

How to Apply for Two Wheeler Loan?

Two Wheeler Loan can be applied online or offline as per the convenience of the applicant.

Online application can be done through

Internet Banking
Mobile Banking By Phone Banking By
Bank’s Official Website

offline application

In offline application can be done by visiting the nearest branch of the bank and applying for the loan there.

To apply for a two wheeler loan, the applicant needs to be a customer of the bank?

It is not mandatory for the applicants to be an existing customer of the bank for a two wheeler loan. However, many banks offer discounted rates for existing customers.

What is the minimum credit score required for Two Wheeler Loan?

The minimum credit score required for a two wheeler loan is 750.

My loan is pending, will it affect my loan application for two wheeler loan?

Approval for a two wheeler loan usually does not depend on any existing loan unless the lender feels that the applicant will not be able to meet the EMI based on his income level and current obligations.

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