Getting a bike is a dream for many. If you are wondering whether you should go for a bike loan we have reasons for it. With the best motorcycle loan rates available in 2025, owning a two-wheeler has never been this easy. Here’s what you should look for when seeking the best motorcycle loan rates.
Types of Bike Loan Interest Rates
When you apply for a bike loan, your lender may give you the option of choosing between a variable rate of interest and a fixed rate of interest.
Fixed Interest Rate
With fixed interest rates, the monthly EMI remains constant throughout the loan tenure. It offers stability and helps you plan your finances effectively, as you will know exactly how much you are paying every month. However, these rates might be slightly higher than floating rates. Fixed rates suit those who prefer predictability.
Variable Interest Rate
Variable rates fluctuate based on the market or lender’s benchmark rates. If the market rates drop, you will benefit from lower EMIs. However, there’s always a risk of rates increasing during your loan tenure, which could raise your repayment amount. Variable rates might work for those comfortable with market fluctuations.
Two-Wheeler Loan Interest Rates
Here are the two-wheeler loan rates currently offered by different banks in India. These figures are based on 2024 data and may vary in 2025 depending on market conditions, lender policies, and other factors. Always check with your lender for the most up-to-date rates.
| Banks/NBFC | Interest Rate |
|---|---|
| State Bank of India | 12.80% p.a. onwards |
| Canara Bank | 11.35% p.a. onwards |
| Bank of India | 8.85% p.a. onwards |
| ICICI Bank | 10.25% p.a. onwards |
| Axis Bank | 11.00% p.a. onwards |
| Punjab National Bank | 11.15% p.a. onwards |
| Union Bank of India | 12.15% p.a. onwards |
| HDFC Bank | 14.50% p.a. onwards |
| Bank of Baroda | 13.65% p.a. onwards |
| UCO Bank | 10.00% p.a. onwards |
| Tata Capital | 8.99% p.a. onwards |
| SMFG India Credit | 22% p.a. onwards |
| Hero FinCorp | Up to 36% p.a. |
| Bajaj Auto Finance | Up to 35% p.a. |
| CASHe | Up to 36% p.a. |
Documents Required for Bike/Two-Wheeler Loan
Here are the documents required for a bike or a two-wheeler loan:
1. Identity Proof: PAN card, Aadhaar card, passport, voter ID, or driving licence.
2. Address Proof: Aadhaar card, utility bill, passport, or rental agreement.
3. Income Proof: Recent salary slips, bank statements, or Form 16 for salaried individuals. For self-employed individuals, IT returns or business financials are required.
4. Vehicle Details: Quotation or invoice of the bike you intend to purchase.
Remember to double-check with your lender, as documentation requirements may vary.
Who Can Apply for the Two-Wheeler Loan?
Most lenders consider applicants who are typically between the ages of 18 and 65 years, have a good income and decent credit score.
CASHe also offers two-wheeler loans for young professionals and first-time borrowers. The eligibility criteria is that the applicant must be an Indian citizen of at least 18 years of age. The individual must be a salaried professional having a monthly salary of ₹40,000 or more.
Factors Affecting Bike Loan Interest Rates
Several factors influence the two-wheeler loan interest rate you are offered. Here are the key ones:
1. Net income: Financial institutions assess your income for bike loan eligibility. Low-income earners can qualify, but higher incomes secure lower interest rates due to reduced default risk.
Other loan payments: Financial institutions will look if you have any other loans like home loans, or any other personal loans, to get an idea about your disposable income.
Credit score: If you have a high credit score, it will help in getting loans with lower interest rates.
Down payment: A higher down payment reduces both the loan amount and its overall cost, as it leads to lower interest charges.
Repayment Tenure: Shorter tenures usually have lower interest rates but higher EMIs and long-term loans have a lower interest rate, but higher overall cost.
Conclusion
With competitive two-wheeler loan interest rates and various options available, buying your dream bike in 2025 is easier than ever. With flexible repayment options, competitive interest rates, and quick approval processes, CASHe allows you to turn your dreams into reality. Apply today.
