
This is a charge applied if you choose to repay your entire loan before the end of the contracted loan term.
5% of the principal outstanding at the time of foreclosure
Two-wheeler vehicle loan interest rate is the rate at which you'll have to pay interest on your two-wheeler loan principal for a fixed tenure. It differs from lender to lender.
Type of Fee | Applicable Charges |
---|---|
Processing Fees | The processing fee is a non-refundable fee levied by Tata Capital while processing your loan application. You are charged this one-time fee even if the loan does not get sanctioned. |
Documentation Charges | This fee covers the cost of verifying your documents, completing necessary compliance checks, and conducting due diligence before your loan is disbursed. |
PDD - Post disbursal document charges | This charge is applied for managing the Registration Certificate (RC), including document storage, administrative handling, and record management. |
Tata Capital offers the lowest two wheeler loan interest rate in the industry, starting at just 8.99% flat rate (may vary as per the product and profile)
This is a charge applied if you choose to repay your entire loan before the end of the contracted loan term.
5% of the principal outstanding at the time of foreclosure
This is a charge applied when an asset is repossessed due to non-repayment of the loan.
At Tata Capital, you will be charged Rs. 8000
This is a charge applied for providing a physical copy of the Statement of Account – a statement having a list of all transactions made in your loan account during a given period.
At Tata Capital, you will be charged
Customer portal – Nil
Branch walk-in - Rs. 250
This is a charge applied for providing a physical copy of the foreclosure report.
At Tata Capital, you will be charged
Customer portal – Nil
Branch walk-in - Rs. 250
This is a charge applied for issuing a physical copy of the duplicate No Objection Certificate (NOC) due to any reason.
At Tata Capital, you will be charged Rs. 300
This is a government-mandated fee required for legally registering your loan agreement.
a) For loan amounts ₹ 85,000 and below– Rs. 0
b) For loan amounts above ₹ 85,000– At Actuals
This is a monthly charge applied when you fail to submit the Registration Certificate (RC) for hypothecation to the Registering Authority within 120 days from the date of loan disbursement.
At Tata Capital, you are charged, Rs.1000/-per month till the time of registration/noting with the authority, where RC hypothecation is pending beyond 120 days post disbursement.
This is a charge applied if you request loan cancellation after the cooling-off period.
At Tata Capital, you will be charge
2% of the loan amount
OR
Rs. 5750/- (whichever is higher)
This is a charge applied if you choose to repay part of your loan before the end of your loan tenure.
5% of Part-Prepayment amount at the time of part-prepayment
Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.
This is a charge for late EMI payments, calculated based on the number of days your EMI remains unpaid.
At Tata Capital, For default in payment of interest and/ or principal amounts 3% per month on defaulted amount (Annualized Penal Charge of 36%)
These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a Two wheeler loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 per instrument per instance
Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of Rs. 450
For Two-wheeler loans, there is only one type of interest rate that is applied which is fixed interest rates. Let's look at it in-depth now.
Fixed interest rates, as the name suggests, do not change over the tenure of the loan. This means that you pay only a fixed interest rate throughout the entire duration. For example, let's say you take a bike loan for Rs. 2 lakhs for five years at 7%. This means you'll only pay interest at a rate of 7% till the end of the loan tenure.
Although they are stable, they can be higher than floating interest rates
You can lose money indirectly as interest rates would come down for floating interest rates in good market conditions
Before you take on a two-wheeler loan, it can help to know what factors influence it so you can make a more informed decision. We dive into each of these factors so you can get a good overview of the loan's working.
Besides two wheeler loan interest rate, you also have to pay other charges like foreclosure charges. These are the charges you need to pay if you want to close your loan before the completion of the tenure. You will have 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 2 wheeler loan interest rate 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. You can only claim the deduction if you purchase the vehicle for business purposes. This is a big relief for self-employed individuals from high two wheeler loan interest rates. You cannot avail tax deductions if you purchase the vehicle for personal use.
No, the processing fees for two wheeler loan is not refundable. This is because we use the money you pay as processing fees towards the legal and technical action involved in the processing of your loan application. Hence, it is non-refundable even if your application is rejected.
A3. Yes, the credit score plays a significant role in determining the interest rate for a
two-wheeler loan. Rates of interest will be low if you improve your credit score.
A4. Tata Capital offers competitive interest rates on bike loans. You can learn more about our current interest rates here. For more information about two-wheeler loans, click here.
Before you apply for a loan, make sure you get the best deal on the interest rate. Follow these simple tips to get the lowest bike loan interest rate-