Interest rate of the two wheeler loan varies from bank to bank and lender to lender. Interest rate offered by the banks also varies with the type of the two wheeler you are purchasing, category of the applicant, income level and type of the loan applied for.
Two wheeler loans are available in both secured and unsecured loan forms. In case of secured loan, the two-wheeler is the collateral and therefore interest rate is relatively less. Loan can even be availed without any collateral which normally is offered with higher interest rate.
Before applying for any two-wheeler loan, interest rate is one of the most significant factors which you should consider and compare. Here are the factors which have an impact on the interest rate you are being offered for a two wheeler loan:
- Vehicle Type: The interest rate will depend on the type of vehicle you intend to purchase. Whether it is a moped, a motorbike or a high-end two wheeler, the interest rates for each of these categories will vary independently.
- Applicant’s Employment Type: Whether you are a salaried individual or a self-employed one will also have an impact on the interest rates being offered. Self-employed individuals are usually offered loans at higher interest rates in comparison to the salaried individuals because of the uncertainty associated to their employment type.
- Income range: The amount you earn actually affects the amount you will be liable to pay as interest rate. Your income is one of the parameters to determine your credibility for repayments and therefore affects the interest rate you will be charged.
Other factors such as margin and loan tenure also play a significant role in determining your interest rates. The EMIs you will be paying for repayment will depend upon on all these factors.
Current Rate of interest on two wheeler loans offered by some of the leading banks/ financial institutions:
|Name of the Provider||Rate of Interest applicable on Two wheeler loans|
|SBI||Super Bike Loan||MCLR + 3.15% = 12.05% p.a.|
|Two Wheeler Loan||MCLR + 8.75% = 17.65% p.a.|
|HDFC||Super Bike Two Wheeler Loan||IRR- 9.65% to 15%||APR- 9.84% to 15.36%|
|Two Wheeler Loan||IRR- 14.03% to 27.53%||APR- 14.52% to 31.89%|
|Syndicate Bank||MCLR + 2% p.a.|
|Vijaya Bank||MCLR+ 2.20% = 11.65% (floating rate)|
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