Two Wheeler Loan Interest Rates play a very important role when you plan to buy a bike or electric scooter. Even a small change in interest can affect your monthly EMI and total repayment.
This easy guide will help you understand loan rates, compare banks, and choose a smart option without confusion 😊
📊 Latest Two-Wheeler Loan Rates in India
Two Wheeler Loan Interest Rates in India usually start from around 7.85% per year and can go above 30% per year, depending on the lender and your profile.
Here is a simple comparison table for popular lenders:
| Bank / Lender | Starting Interest Rate | Loan Amount |
|---|---|---|
| Bank of India | 7.85% p.a. | Up to ₹50 lakh |
| IDFC First Bank | 8.50% p.a. | As per eligibility |
| ICICI Bank | 10.25% p.a. | Flexible |
| Axis Bank | 10.50% p.a. | ₹25,001 onwards |
| SBI | 12.60% p.a. | ₹50,000 – ₹25 lakh |
| HDFC Bank | 14.50% p.a. | Case-based |
| Bajaj Finance | Up to 31% p.a. | Up to ₹20 lakh |
📌 Public banks usually offer the lowest two-wheeler loan rate of interest, but approval rules are stricter.
🏦 Bank Loan vs NBFC Loan
When choosing Two Wheeler Loan Interest Rates, it is important to understand whether a bank loan or an NBFC loan suits you better.
Bank Two-Wheeler Loan – Best For
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People with stable monthly income
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Applicants with a good CIBIL score (700 or above)
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Borrowers planning long-term savings
Bank loans usually take a little more time for approval, but the interest cost is generally lower.
NBFC Two-Wheeler Loan – Best For
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Self-employed individuals
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First-time loan borrowers
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Applicants with low or no credit history
NBFCs offer faster approvals, but their interest rates and extra charges can be higher.
👉 If your EMI budget is limited, a bank loan is usually a better choice.
📉 Factors That Affect Loan Interest Rates
Two Wheeler Loan Interest Rates do not depend only on bank policies. Your personal and financial details also play a big role.
Credit Score (Most Important Factor)
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750 and above → Best interest rates
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650–749 → Average interest rates
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Below 650 → Higher interest or possible rejection
Monthly Income and Job Stability
A regular income and stable job reduce the lender’s risk, which can help you get a lower interest rate.
Loan Tenure Selection
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Short tenure → Less total interest paid
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A longer loan tenure reduces the EMI but increases the overall interest paid.
Down Payment Amount
A higher down payment reduces the loan amount, which can help you get a better interest rate.
Check if you qualify easily with our tool and speed up your loan approval process.
| CHECK TWO WHEELER LOAN ELIGIBILITY |
💸 How Interest Rate Affects Your EMI
Two Wheeler Loan Interest Rates play a major role in deciding your monthly EMI and the total amount you repay over time. Even a small increase in interest rate can significantly raise the overall loan cost.
When a bank or NBFC calculates your EMI, it mainly considers:
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Loan amount
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Interest rate
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Loan tenure
Among these, the interest rate has the strongest long-term impact on your total repayment.
📘 Simple EMI Example Explained
Let us understand this with a clear example:
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Loan Amount: ₹1,00,000
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Loan Tenure: 3 years (36 months)
| Interest Rate | Monthly EMI | Total Amount Paid |
|---|---|---|
| 9% | ₹3,180 | ₹1,14,480 |
| 12% | ₹3,321 | ₹1,19,556 |
| 18% | ₹3,615 | ₹1,30,140 |
🔍 What does this mean?
At 18% interest, you pay ₹15,660 more compared to a 9% loan—even though the loan amount and tenure are the same.
📉 Why a Lower Interest Rate Matters
A lower interest rate helps you in two ways:
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Reduces your monthly EMI burden
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Saves money on total interest over the loan period
This is especially important if your monthly budget is tight or if you already have other financial commitments.
🧮 Why EMI Calculators Are Important
Manually calculating EMI can be confusing and time-consuming. Using an online calculator helps you:
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Compare multiple interest rates easily
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Adjust tenure to find a comfortable EMI
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See total interest and repayment amount clearly
👉 Tools like a two wheeler loan interest rates calculator or the SBI two wheeler loan EMI calculator on emicalculator24.com help you make a smart and confident loan decision before applying.
👉 Want to find your exact EMI? Use our to compare interest rates and plan your budget easily.
| TWO WHEELER LOAN EMI CALCULATOR |
✅ Smart Tip for Borrowers
Always compare at least 2–3 lenders using an EMI calculator instead of choosing a loan based only on the lowest interest rate shown in ads. This ensures you select a loan that truly fits your budget and financial goals.
✅ Tips to Get a Lower Loan Rate
Two Wheeler Loan Interest Rates can be reduced if you plan smartly:
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Improve your credit score
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Close old loans if possible
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Choose a shorter loan tenure
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Apply during festive offers
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Prefer your existing bank
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Compare EMI before final approval
These steps help you save money in the long run 👍
⚠️ Charges Beyond Interest Rate
Two Wheeler Loan Interest Rates are important, but extra fees can make a loan costly. Always check:
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Processing Fee: 1–7% of loan amount; some banks offer zero fee.
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Prepayment/Foreclosure Charges: Some lenders charge if you close the loan early.
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Late Payment Penalty: Missing EMIs may add fines and affect your credit.
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Documentation Fees: Small charges for verification, stamp duty, or account maintenance.
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Loan Disbursal Time: Banks may take days; NBFCs are usually faster.
❌ Tip: A low interest rate alone isn’t enough. Compare the total loan cost including all charges before choosing a loan.
🔄 Fixed vs Floating Interest Rate
Two Wheeler Loan Interest Rates can be fixed or floating.
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Fixed Rate: EMI stays the same, safer choice
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Floating Rate: EMI may change with market rates
If you want stability, fixed rates are better.
❓ FAQs on Bike Loan Interest Rates
Q1: What is the normal interest rate for a two wheeler loan?
A1: Rates usually range between 7.85% to 36% per year, based on the lender.
Q2: Which bank offers the lowest interest?
A2: Public banks like SBI and Bank of India often offer lower rates.
Q3: Does low credit score increase interest?
A3: Yes, poor credit history increases risk and interest cost.
Q4: What is the maximum loan tenure?
A4: Most lenders allow repayment up to 5 years.
🏁 Final Thoughts
Two Wheeler Loan Interest Rates should always be compared carefully before taking a loan. A small difference today can save you a big amount tomorrow.
Use EMI tools, compare banks like SBI, ICICI, Axis, HDFC, and Bajaj Finance, and choose what fits your budget best 🚲
👉 Visit emicalculator24.com to calculate EMI and make a confident decision.