After a long battle with Covid-19, the Indian auto industry seems to be treading on the road to recovery. There is a lot of buzz in the market about a variety of new and innovative bikes to be released in 2022. With the launch of ADVs, sports bikes, naked cruisers, and budget bikes, two-wheeler buyers in India will surely be spoiled for choice.
Most two-wheeler aspirants need the support of a two-wheeler loan to get the vehicle of their choice. If you, too, are contemplating the idea of buying a two-wheeler, you can always take the help of a two-wheeler loan and finance a bike, scooter, or even a superbike.
Though a two-wheeler loan makes buying a bike easier, a little homework from your side can help you get a good deal. It is recommended that, along with a market survey on the best bike, you also go through the two-wheeler interest rate that is offered by banks. The range of interest rates varies from 6.60% to 28.0%.
Given below is a table to help you compare the best banks for 2-wheeler loans with interest rates below 10%. Along with the two-wheeler interest rate, the table also shows an indicative EMI that you may have to pay to a loan amount of INR 1 lakh for a tenure of 3 years:
| Name of the Bank | Two-Wheeler Interest Rate | EMI |
|---|---|---|
| Bank of India | 6.85% | INR 3,081 |
| Canara Bank | 9.00% | INR 3,180 |
| Central Bank | 7.25% | INR 3,099 |
| IDBI Bank | 9.80% | INR 3,217 |
| J & K Bank | 8.70% | INR 3,166 |
| Punjab National Bank | 8.65% | INR 3,164 |
| Punjab & Sind Bank | 8.80% | INR 3,171 |
| Union Bank | 9.90% | INR 3,222 |
Things to keep in mind when taking a two-wheeler loan:
- Compare the loans being offered on various parameters such as:
- Eligibility criteria
- Rate of interest
- Repayment tenure
- Processing fee
- Loan-to-value ratio
- Other fees
- While comparing two-wheeler interest rates is important, what is equally crucial is to read between the lines and understand the other fees. For example, if you are hopeful of pre-closing the loan, a bank charging a lower pre-closure fee may be a better idea.
- A healthy credit score of 750 and above will make you a preferred applicant. Banks may offer you a lower rate of interest.
- Complete the required paperwork in advance to ensure a quicker loan approval process. Most banks ask for:
- Identity Proof
- Proof of Income
- Proof of Address
- Other KYC details
- Make use of an online bike EMI calculator. Such calculators are free online tools that give you a fair idea of the monthly instalment that you’ll have to pay against the two-wheeler loan. Increase or decrease the variables, such as loan amount and repayment ter, to reach the best decision.
Conclusion
A two-wheeler is a preferred mode of transport in many Indian households. And why not,ot it is affordable, practical, time-saving, and easy to maintain. If you have your eyes set on a particular brand and model, explore the mentioned banks and get the best two-wheeler loan. Compare the features available as well as th two-wheeler loan interest rates offered by different banks. A detailed analysis will help you make the right decision.
