Here are the best banks for 2-wheeler loans with interest rates below 10% Interest rates on cheapest bike loans from banks range between 6.85-9.9 percent
April 21, 2022 / 09:04 PM IST
March 2022 may have witnessed a decline in auto sales, but the two-wheeler segment remained highly popular, especially among millennials and the Gen Z. The segment ticks the convenience and aspirational value boxes and, at present, is easier to finance a bike purchase. As per data compiled by Bankbazaar.com, interest rates on two-wheelers costing Rs 1 lakh with a three-year tenure start from 6.85 percent per annum.
State-run Bank of India is the cheapest lender when it comes to two-wheeler loans, offering an interest rate of 6.85 percent, comparable to home loans. At this interest rate, the EMI for a Rs 1-lakh loan with a three-year repayment period will amount to Rs 3,081.
Government-owned Central Bank of India is next on the list with an interest rate of 7.25 percent. The EMI will amount to Rs 3,099.
Jammu & Kashmir Bank charges 8.45 percent for a two-wheeler loan of Rs 1 lakh with a three-year repayment tenure.
The list of cheapest lenders in the two-wheeler segment is dominated by public sector banks, as is the case with most other loan categories. Punjab National Bank (PNB) offers an interest rate of 8.65 percent for Rs 1-lakh bike loans.
This PSB charges an interest rate of 8.8 percent per annum, with the EMI working out to Rs 3,171.
The first private sector bank on this list of lenders offering lowest rates on bike loans, Axis Bank offers such loans at an interest rate of nine percent. State-owned Canara Bank, too, offer the same interest rate for bike loans of Rs 1-lakh with repayment tenures of three years. You will have to fork out EMIs of Rs 3,180 per month.
Government-owned Union Bank of India is the last on the list offering a sub-10 percent bike loan of Rs 1 lakh. You will have to repay the loan in equated monthly installments of Rs 3,222 over three years.
Interest rates on two-wheeler loans for all listed (BSE) public and private banks have been considered for data compilation (excluding foreign and small finance banks). Banks for which data is not available on their website have not been considered. Data collected from respective banks’ websites as on April 13, 2022 (April 12 in case of Punjab and Sind Bank). Banks are listed in ascending order on the basis of interest rates, that is, banks offering lowest interest rates on two-wheeler loans are placed at top and highest at the bottom. Lowest interest rate offered by the banks on a two-wheeler loan is shown in the table, irrespective of loan amount and tenure. EMI is calculated on the basis of Interest rate mentioned in the table for Rs 1 lakh loan with tenure of three years (processing and other charges are assumed to be zero for EMI calculation). Interest rates mentioned in the table are indicative and may vary depending on banks’ terms and conditions.