Buying a two-wheeler on loan is a common and smart choice, especially with flexible EMI options available today. But choosing the right 2 wheeler loan interest rates is essential to avoid paying extra over the loan period.
In this guide, we’ll help you understand how bike loan interest works, which banks offer the best rates, and how to secure the lowest interest rate for a bike loan in 2025.
🚀 Latest 2 Wheeler Loan Interest Rates – June 2025
Here’s a quick comparison of interest rates from top banks and NBFCs:
| Bank/NBFC | Interest Rate (p.a.) | Loan Amount | Max Tenure | Processing Fee |
|---|---|---|---|---|
| SBI | 12.85% – 14.85% | Min ₹50,000 & Max is ₹3,00,000 | Up to 3 years |
2% of the loan amount + GST charges |
| HDFC Bank |
14.5% – 27.53% | ₹26,000 – ₹50,00,000. | Up to 4 years | 0.50% of the loan amount or ₹3,000 |
| Bajaj Finserv | 0.99% – 31% | Min ₹9999 – Max ₹20 lakh. | 12 to 60 months | 5% of the loan amount. |
| Hero FinCorp | 10.65% – 36% | Min ₹10,000 – Max ₹3,50,000. | Up to 3 years | 2.5% of the loan amount plus applicable taxes |
| ICICI Bank |
10.25% – 26.10% | Min ₹10,000 – Max of ₹30 lakh. | Up to 5 years |
Upto 4% of loan amount |
| Axis Bank |
15.00% – 25.00% | Min ₹25,001 – Max ₹35 Lakhs | Up to 3 years |
Up to 2.5% of Loan Amount |
| Yes Bank | 9.30% – 14.20% | From ₹1 lakh to ₹25 lakhs. | Up to 3 years |
Up to 1% of the loan amount |
| Canara Bank | 8.20% – 15.75% | ₹10,000 – ₹10 lakh | Up to 3 years | 0.25% on the total loan amount, (min ₹1,000) |
| Union Bank of India | 12.35% – 12.45% | Up to ₹10 Lakhs | Up to 3 years |
Ranging from 1% to 4% |
| Bank of India | 8.75% – 11.11% | ₹50,000 – 1 Crore. | Up to 3 years |
The percentage can vary from 1% to 4%. |
| UCO Bank | 10.70% – 14.11% | Min ₹60,000 – Max ₹20 Lakhs. | Up to 3 years |
1% of loan amount, (min ₹500) |
👉 Note: Interest rates depend on factors like credit score, income, and loan tenure. Always check with the lender for updated figures.
🧠 What Affects Your 2 Wheeler Loan Interest Rates?
Getting a low rate isn’t just about choosing the right bank. Here are the key factors that affect motorcycle loan interest rates:
🔹 Credit Score
A score above 750 usually qualifies for the best bike loan interest rate.
🔹 Loan Amount & Tenure
Shorter tenures often come with lower interest rates, while longer tenures may cost more over time.
🔹 Income & Employment Type
Salaried individuals with stable income often receive better offers compared to self-employed applicants.
🔹 Bike Type & Value
New bike loan interest rates may be lower than used bikes, and premium models may have different rates.
💡 How to Get the Lowest Interest Rate for Bike Loan
Here are proven tips to secure a better deal:
- Improve your credit score before applying
- Compare loan offers from multiple banks/NBFCs
- Choose shorter repayment tenure
- Opt for festive offers or manufacturer tie-ups
- Negotiate processing fees and insurance bundling
Using an EMI calculator for bike loan can also help you choose the right balance between EMI and interest.
Should You Choose a Bank or NBFC for a Bike Loan?
When applying for a loan, you can choose between banks or NBFCs (Non-Banking Financial Companies). Here’s how they compare:
| Criteria | Bank | NBFC |
|---|---|---|
| Interest Rates | Lower (usually) | Slightly higher |
| Eligibility | Stricter | More flexible |
| Processing Speed | May take longer | Faster disbursal |
| Offers | Limited to existing customers | Dealer tie-ups, special schemes |
👉 If you have a good credit score, a bank may offer the lowest interest rate for bike loans. If not, NBFCs provide better flexibility.
📊 Example: Bike Loan EMI Calculation
Let’s say you take a loan of ₹70,000 for 2 years at 10.5%:
- Monthly EMI: ₹3,246
- Total Interest Paid: ₹7,904
👉 Use our bike EMI calculator for bike loan to estimate your EMI based on different rates and tenures.
❓ Frequently Asked Questions(FAQ’S): 2 Wheeler Loan Interest Rates.
Q1. What is a good 2 wheeler loan interest rates in 2025?
A: Anything under 10% is considered competitive, especially from banks like SBI and Bajaj Finance.
Q2. Which lender offers the best bike loan interest rate?
A: SBI, Bajaj Auto Finance, and ICICI often have attractive rates based on borrower profiles.
Q3. Are new bike loan interest rates lower than used bike loans?
A: Yes. New bikes generally attract lower interest due to reduced risk for lenders.
Q4. Can I get a zero-interest bike loan?
A: Sometimes offered during promotions, but such loans often include higher vehicle prices or hidden charges. Always read the terms.
Q5. Do women get lower 2 wheeler loan interest rates?
A: Some banks offer special schemes or discounted rates for women applicants. It’s best to inquire specifically.
Q6. Does the down payment amount affect the interest rate?
A: Yes. A higher down payment reduces the loan-to-value ratio and can result in better loan terms and lower rates.
🏁 Final Thoughts
Choosing the right 2 wheeler loan interest rates can make a big difference in your total loan cost. Always compare rates, read the fine print, and plan using an EMI calculator. Whether you’re buying a scooter or a superbike, getting the best bike loan interest rate in 2025 is possible with a bit of research and smart planning.
I used your EMI calculator and it really helped me plan my bike purchase. Just wanted to say thanks!
That’s amazing to hear!
Great article, this cleared up a lot of confusion.
Thank you! We’re glad the explanation helped you.