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Comparing Two-Wheeler Loan Interest Rates: Which Bank Offers the Best Deal?

Updated: Jun 4

The interest rates for two-wheeler loans vary across different banks in India. Here is a comparison of the interest rates offered by several major banks and non-banking financial companies (NBFCs).



Compare Interest Rates for Two-Wheeler Loans Across Banks

  1. SBI: 8.50% p.a. onwards.

  2. ICICI Bank: 10.25% to 26.10% p.a..

  3. HDFC Bank: 14.5% p.a. onwards.

  4. Axis Bank: 15.50% to 25.00% p.a..

  5. Tata Capital: 8.99% p.a. onwards.

  6. IDFC First Bank: 9.99% to 18.99% p.a..

  7. Bank of Baroda: 13.65% p.a. onwards.

  8. Muthoot Capital: 0.99% p.a. onwards.

  9. Hero Fincorp: 14.00% p.a. onwards.

  10. SMFG Indiacredit: 16% to 30% p.a..

  11. Home Credit: 19.99% p.a. onwards.

  12. Bandhan Bank: 16.50% to 22.50% p.a..

  13. AU Bank: Up to 28% p.a..

  14. Kotak Mahindra Bank: As per bank's norms.

  15. YES BANK: As per bank's norms.

  16. IndusInd Bank: As per bank's norms.

  17. TVS Credit: Affordable rate of interest.


**Please check the latest rates on respective banks and NBFC's Website


Factors Affecting Interest Rates

  1. Credit Score: A higher credit score typically results in lower interest rates.

  2. Loan Amount and Tenure: Higher loan amounts or longer tenures may attract higher interest rates.

  3. Market Conditions: Interest rates are influenced by market conditions, including changes in the economy, inflation rates, and monetary policy.

  4. Lender's Policies: Each financial institution has its own lending policies and risk assessment criteria, which can impact the interest rates offered.

  5. Type of Two-Wheeler: Premium or high-end vehicles may come with different interest rates compared to standard models.

  6. Down Payment: A larger down payment may result in a lower loan amount and, consequently, a lower interest rate.

  7. Relationship with the Lender: Existing customers may be eligible for preferential interest rates or discounts based on their relationship and banking history.

  8. Market Competition: Competition among lenders can lead to competitive interest rates as institutions vie for borrowers' business.


Conclusion

The interest rates for two-wheeler loans vary significantly across different banks and NBFCs in India. Borrowers should consider factors such as their credit score, loan amount, tenure, and relationship with the lender when comparing interest rates. Additionally, market conditions and lender policies can also impact the interest rates offered.

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