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Two Wheeler Loan Interest Rates And Charges

What is the Interest Rate on a Two Wheeler Loan?

Two-wheeler loan interest rates refer to the rate at which the interest will be charged on your two-wheeler loan principal for a fixed tenure. Two-wheeler loan rates or bike loan rates vary among lenders.

Tata Capital’s bike loan interest rates start at just 10.75%.

Processing Fee

Up to 4% +GST on the total 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

Stamp Duty Charges

For loan amounts up to ₹ 85,000 – ₹ 250

For loan amounts above ₹ 85,000 – As per state

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.

Factors affecting Two Wheeler Loan Interest Rates

The main factors that impact two-wheeler loan interest rates are:

  • Credit Score: If you have a good credit score, you may be able to get a lower interest rate. On the other hand, if your credit score is bad, the lender will most likely charge you a higher interest rate.

  • Income Level: Every lender has a particular level of income they expect you to earn per month. The higher you earn, the lower risk you have of not repaying your loan. This usually means you will get a favourable interest rate. If you earn a lower level of income, you may be given a higher rate of interest.

  • Place of Work: Your workplace or the organisation you work for may affect your two-wheeler rates. A reputed company may mean that you have a stable job and that you’re drawing a stable income. This may translate into lower interest rates.

  • Nature of Employment: Lenders may offer different interest rates depending on whether you are self-employed or salaried.

Tips to Lower Bike Loan Interest Rates

When you apply for a loan, aim for the lowest bike loan interest rates possible. Here are a few tips that can help you get a lower rate of interest:

  • Improve your credit score: Since your credit score plays a major role in determining your bike interest rate, look at ways to improve it before you apply.

  • Improve your Current Debt Status: Check your debt-to-income ratio. Pay off existing loans and bring down this ratio. The lower the ratio, the better your chances are of getting good rates.

  • Negotiate with your Lender: Sometimes, negotiating with your lender can help, especially in situations where you don’t fulfill all the eligibility criteria. For example, if you don’t have sufficient income but are expecting a pay raise, offering proof of this can help you get better interest rates.

  • Turn to your existing lender: If you already have a good relationship with a lender, you can get better interest rates.

Things to Consider Other Than Interest Rates

Here are some other factors you must consider apart from bike finance interest rates before you apply for a loan:

  • Processing Fee: It is a one-time charge that your lender will levy for processing your loan application. A high processing fee will increase your overall loan costs. Choose a lender that offers you a low-interest rate along with a reasonable processing fee.

  • Eligibility Criteria: Some lenders may have stricter eligibility criteria than others. Choose a lender whose criteria you can easily fulfil so that you get your loan without any hassles.

  • Prepayment Charges: Prepaying your loan can help you save money on interest costs. However, many lenders charge a fee if you want to prepay or foreclose your loan. Compare these charges if you plan to prepay or foreclose your loan in the future.

  • Other Charges: Make sure you read the loan offer document thoroughly and find out every other cost there is.

  • Disbursal Time: This is the time the lender takes to give you the money from the time you apply for it. Find out how long various lenders take to sanction and disburse your loan.

  • Discounts and special offers: Keep an eye out for seasonal discounts or special rates and loan conditions offered by lenders. Many lenders tend to give customers special offers during festival seasons. These offers may help you get low interest, bike loan terms that are preferential, and better repayment options. 

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.