Cheapest two-wheeler loan: Compare interest rates from more than 20 banks

A two-wheeler loan helps you borrow funds to purchase a vehicle. The loan amount varies depending on the type of two-wheeler you buy and your monthly income. Once you have taken out the loan, you will need to repay it through monthly equivalent installments (EMI).

Each installment will consist in part of principal and interest payments. After repaying the full amount of the loan, you can apply for the lifting of the mortgage on your vehicle and become the absolute owner.

There are, however, some important factors to remember when applying for a two-wheeler loan.

Amount of the loan

You need to assess your needs and calculate exactly how much money you need to buy your two-wheeler. Avoid asking for more than your ability to repay.

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Check your eligibility

Check your eligibility once you have decided on the amount you want to borrow. You should not apply for a loan amount for which you are not eligible to avoid rejection of your loan application.

Credit score

Your credit score is important when buying an expensive two-wheeler. It helps you borrow 100% of the cost of your two-wheeler. Some lenders may give you a 100% loan if your monthly income and credit score meet their criteria.

Add a co-applicant

You can add a co-applicant if your credit score and income don’t allow you to get the loan you want. Adding a guarantor or co-applicant will help you borrow the loan you need.


It is important to list the documents you may need to apply for the loan. You can ask the lender to keep these documents ready when applying for the loan. If you keep your documents ready, your loan disbursement happens without delay and you can get your loan approved exactly when you want.

Apply with existing lender

You can consider applying for the loan from your existing lender or where you have a relationship. It helps you process your loan quickly. If you meet the criteria, your loan will be approved faster and you won’t have to wait unnecessarily.

Compare interest rates

One of the most important things is to compare interest rates from different lenders to find out where you get the cheapest and lowest loan. It is also important to know the EMI you will be paying up front to calculate accordingly to avoid defaulting or delaying your EMI refunds.

The table below compares interest rates from over 20 financial institutions for a two-wheeler loan of Rs 1 lakh for three years. You can compare and decide according to your needs.

Interest rate and EMI on the two-wheeler loan

Compiled by

Note: Two-wheeled vehicle loan interest rates for all banks listed (in ESB) as well as some NBFCs considered for data compilation (except foreign banks and small financing); Entities for which data is not available on their website are not considered. Data collected from respective institution’s website as of September 13, 2022. Banks and NBFCs are listed separately in ascending order on the basis of interest rate, i.e. the bank offering the interest rate. The lowest interest on the two-wheeled loan is placed at the top and the highest at the bottom. The lowest interest rate offered by lenders on two-wheeled loans is shown in the table, regardless of loan amount and term. The EMI is calculated on the basis of the interest rate mentioned in the table for the loan Rs 1 Lac with a duration of 3 years (processing fees and others are assumed to be zero for the calculation of the EMI); The interest mentioned in the table is indicative and may vary depending on the general conditions of the bank/NBFC. ^Rack interest rate.

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