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Two Wheeler Loan Interest Rates And Charges

  • Overview
  • Eligibility & Documentation
  • Rates & Charges
  • Calculators
  • EMI Options
  • FAQs
  • Know More
    • 1

    Processing Fee

    3.10% on the loan amount

    Penal Interest/Additional Interest

    3% on Overdue Amount per month + GST

    Miscellaneous Charges

    PDC Charges

    ₹ 850

    Bounce Charges

    ₹ 450 + GST

    Cancellation Charges

    2% of loan amount or  ₹5,750 whichever is higher

    Instrument Swap Charges

    ₹ 550 + GST

    Foreclosure Charges

    5% of the principal outstanding at the time of foreclosure + GST

    Mandate Rejection Service Charge

    ₹ 450 + GST

    Charges will be applicable on your EMI Due date in case the account does not have an Active mandate after the exhaustion of the given post-dated cheques. This charge would be applied every month until there is an Active Mandate linked to the account.

    Broken Period Interest

    At Actuals

    Repossession Charges

    ₹ 8,000

    Statement of Accounts

    ₹ 300

    Foreclosure Report

    ₹ 550

    Duplicate NOC

    ₹ 300

    Post Disbursement Documentation Charge

    ₹ 550

    Disclaimer

    • The fees/charges indicated above are subject to revision at Tata Capital’s discretion from time to time.
    • For the definitions of the above charges, please refer to the Master Terms & Conditions sheet.
    • Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees & charges.

    How Can I be Eligible to Avail a Two Wheeler Loan?

    Whether you are a salaried or self-employed individual, you can meet two wheeler eligibility criteria by maintaining a CIBIL score of 750 or above and having a stable source of monthly income for at least a year in case of a standard bike loan and for at least two years. Plus, make sure that you fall within the prescribed age bracket of 21 to 60 years and have a stable residential status for a minimum of one year. If you wish to take a super bike loan, you must have a minimum income of Rs. 15 lakhs per year if you’re a salaried individual and a minimum business turnover of Rs. 5 lakhs per month if you’re a self-employed individual.

    How to Use Bike Loan EMI Calculator for Calculating EMI?

    A bike loan EMI calculator is an easy-to-use online tool that gives accurate results at lightning speed. To use it, all that is required are three inputs – Principal loan amount, rate of interest on the loan, and loan tenure. Just enter the three inputs in their respective slots and the calculator will shows results automatically. 

    Detailed FAQs

     

    To get a two wheeler loan, follow the steps as given below –

     

    • First, check your two wheeler loan eligibility and submit the application form online for a quick and hassle-free procedure.

    • Visit the dealership showroom and pick a bike or two wheeler of your choice.

    • Submit the relevant two wheeler loan documents required.

    • Your documents and credit report will be verified for loan approval.

    • Post-verification, if there are no discrepancies, your loan will be sanctioned, and the amount will be disbursed to your dealer. 

    The following are the benefits of two wheeler loan –

    • Avoiding public transport amidst COVID-19 – Abstain from taking highly crowded public transportation and travel safe with a personal two wheeler.

    • Easy way to finance dream ride – In a few effortless steps, you can bring home your dream two wheeler.

    • Meeting all personal and business commuting needs – You need not be dependent upon anyone for your commuting needs, especially in times of emergencies.

    • Keeping aside cash for emergencies – Keep your funds undisturbed for emergency situations since you can pay back the loan in easy monthly instalments.

    • Tax claims and deductions – Claim tax benefits on the interest payable and depreciation cost of the vehicle if you’re taking a two wheeler loan for business purposes. 

    We offer bike finance for a maximum value of Rs. 3 lakhs. Depending upon your two wheeler loan eligibility and whether or not you wish to apply for a standard or super bike loan, you get to choose from a wide principal bracket (Rs. 25,000 to Rs. 3 lakhs) Also; you can calculate your bike loan EMI using two wheeler loan EMI calculator.

    You can avail two wheeler loan for a maximum tenure of 60 months or 5 years. You get a wide bike loan tenure bracket; choose from flexible two wheeler loan tenure, ranging from as short as 6 months to as long as 60 months. 

    The following are the two wheeler loan eligibility criteria –

    • Age – must be between 21 and 60

    • Residential stability – at least one year, and in case of self-employed individuals, the residence must be self-owned

    • Work stability – at least one year for salaried individuals and at least two years for self-employed individuals 

    The following are the documents required for two wheeler loan –

    • ID Proofs – Passport/Driving License/PAN Card/Voter’s ID/Aadhaar Card along with recent passport size photographs

    • Residential Proofs – Passport/Driving License/Utility Bill/Voter’s ID

    • Income Proofs (if required) – Previous three months’ Salary Slips/Form 16/Last three months’ Bank Statements reflecting salary credits/Past three years’ Income Tax Returns (ITR)/Salary Certificate in case of salaried individuals

    • Bank Statements – of the last three months in case of standard bike loan and last six months in case of super bike loan.

    • Residence Ownership Proof – must be in the name of applicant, their parents, or spouse in case of a standard bike loan and must be mandatorily self-owned in case of super bike loan

    Check your eligibility and ensure that you submit the right documents needed for two wheeler loan. 

    The collateral for a loan refers to an asset that is pledged as security with the lender. In case a borrower fails to repay the loan, the asset kept as collateral will be seized. However, you do not need to keep any additional asset as collateral when you avail bike finance from Tata Capital. The bike you purchase will itself act as the security for your two wheeler loan. 

    Yes, purchasing a super bike is no longer a far-fetched dream with lenders offering super bike loan to fund the expenses. You can receive bike finance for 95% to even 100% of the super bike’s value. 

    Yes, you can avail a zero down payment two wheeler loan with Tata Capital. Meaning, you will not have to pay any down payment or upfront costs; 100% of your desired bike’s value will be covered by your bike loan.  

    Two wheeler loan interest rate refers to the rate at which interest will be charged on your two wheeler loan principal for a fixed tenure. Tata Capital’s bike loan interest rates start at just 10.75%. 

    Processing fee of a two wheeler loan is the fee charged for the processing of your loan application. This one-time fee is non-refundable even if your loan application is rejected. Tata Capital charges a processing fee which is equivalent to 3.10% of the loan principal amount. 

    Since two wheeler loan interest rate is expressed as a percentage per annum, the following formula is used to calculate two wheeler loan interest – (Interest Rate/Number of Payments) x Loan Principal = Interest.

    Let us understand this with the help of an example – For a loan principal of Rs. 2 lakhs taken at a bike loan interest rate of 12% for a period of 12 months or one year, the interest on two wheeler loan can be calculated as – (0.12/12) x 2,00,000 = Rs. 2,000. 

    Besides two wheeler loan interest rate, other charges such as foreclosure charges are also involved. Foreclosure charges are the charges that you need to pay in case you want to close your loan before the completion of the tenure. You will need to pay the relevant foreclosure charges along with the payment of the outstanding principal. Tata Capital levies foreclosure charges equivalent to 5% of the principal outstanding at the time of foreclosure of two wheeler loan + applicable GST.



    Yes, the interest component of a two wheeler loan is eligible for tax deductions to a maximum of Rs. 1.5 lakhs in a financial year as per Section 80 C of the Income Tax Act, provided you purchase the vehicle for business purposes. This is a big respite for self-employed individuals from high two wheeler loan interest rates. The same cannot be availed if the vehicle being purchased is for personal use. 

    No, the processing fees for two wheeler loan is not refundable. This is because the money you pay as processing fees is used towards the legal and technical action involved in the processing of your loan application, and as such, cannot be refunded even if your application is rejected. 

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