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Latest Two-Wheeler Loan Interest Rates in India

Here are the starting interest rates from leading banks and NBFCs:

Lender
HDFC Bank
ICICI Bank
Axis Bank
SBI
IDFC FIRST Bank
Bajaj Finserv
L&T Finance
Hero FinCorp
 
Interest Rate
14.50% onwards
10.50% onwards
10.99% onwards
16.65% onwards
9.50% onwards
11.20% onwards
11.50% onwards
11.00% onwards

Difference Between Secured and Unsecured Two-Wheeler Loans icon

Difference Between Secured and Unsecured Two-Wheeler Loans

Most two-wheeler loans are secured loans, where the bike is hypothecated to the lender. This means the lender can repossess the bike if repayments are missed. Unsecured bike loans are rare and typically have higher interest rates due to increased risk.

How is Interest Calculated on Two-Wheeler Loans? icon

How is Interest Calculated on Two-Wheeler Loans?

Interest on two-wheeler loans is usually calculated on a reducing balance basis, which means you pay interest only on the outstanding principal. This is more economical than flat-rate interest, where interest is charged on the full loan amount for the entire tenure.

What Is Loan-to-Value (LTV) Ratio in Bike Loans? icon

What Is Loan-to-Value (LTV) Ratio in Bike Loans?

LTV ratio refers to the percentage of the bike’s cost that the lender is willing to finance. Most lenders offer up to 85%–95% LTV, and you’ll need to pay the rest as down payment. Lower LTVs generally come with lower risk and better terms.

Eligibility Criteria for Two-Wheeler Loans

  • right-arrow Age: 21 to 65 years
    right-arrowEmployment: Salaried or self-employed with steady income
    right-arrowMinimum Income: ₹10,000 to ₹15,000 per month
    right-arrowCIBIL Score:700+ for better approval and interest rates
    right-arrowResidential Stability: Proof of residence (preferably 1+ year)

    • Documents Required for Two-Wheeler Loans

  • right-arrow KYC Documents: PAN, Aadhaar, or Voter ID
    right-arrowAddress Proof:Utility bills, Aadhaar, or rental agreement
    right-arrowIncome Proof: Salary slips, bank statements, ITR, or GST returns
    right-arrow Vehicle Proforma Invoice
    right-arrowPassport-size Photograph

    • Tips to Get Approved for a Two-Wheeler Loan

  • right-arrowImprove Your Credit Score: A score above 750 gives you an edge
    right-arrowConsider Co-applicant: Boosts eligibility and lowers risk for lender
    right-arrowMake a Higher Down Payment: Reduces loan amount and EMI burden
    right-arrowUse Rupyy’s Pre-approved Offers: Check now

    • Written byWriter logo

    Frequently Asked  Questions

    What is the typical loan tenure for two-wheeler loans?
    Can I prepay or foreclose my bike loan early?
    Can I get a two-wheeler loan with no credit history?
    Is a guarantor required for a bike loan?

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