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Why should you compare the 2 wheeler loan interest rate?

Are you planning to obtain a two-wheeler loan to purchase the bike/ scooter you have always fancied? If that is the case, you will advise you to glimpse at the 2 wheeler loan interest rate offered by various top lenders in India before applying for the loan. We have listed some exquisite interest rates from leading banking institutions that range between 7.35% p.a. to 20.9% p.a. for the bike loan. 

The list of bike loan Interest Rate 2021

Look at the below-mentioned table. We have a scrawl down rate of interest as well as processing fees charged by different moneylenders, which will help you compare and select the most suitable provider for you in India.

Finance ProviderLowest Interest RatesProcessing Fees
State Bank of India (SBI)16.25% p.a. To 18.00% p.a.2% of the loan amount + GST
HDFC Bank20.90% p.a.Up to 2.5% of the loan amount
Punjab National Bank8.70% p.a. to 9.55% p.a.Rs.500 – Rs.1,000
Axis Bank10.80% – 28.30%Up to 2.5% of the loan amount
Union Bank of India9.90% to 10.00%NIL
Bank of India7.35% p.a. to 8.55% p.a.Rs.500 – Rs.10,000
Bank of BarodaBRLLR + Strategic Premium + 4.00% i.e. 10.80% p.a.2% of loan amount minimum Rs.1,00
UCO Bank11.70% p.a.1% of the loan amount

Fixed interest rate V/S Variable interest rate – What should I consider?

Sometimes, while applying for a bike loan, you might come across fixed interest rates and variable interest rates offered by the lender. In such a situation, you can get mislead or confused about which one you should choose, right?

Choosing any from a fixed rate of interest or variable interest rates depends on the level of risks held together.

However, variable interest rates are usually lower than fixed interest rates. Variable interest rates also fluctuate according to the market. On the other hand, fixed interest rates remain steady and do not fluctuate as per the market. For example, if you opt for finance with an 11% fixed rate p.a., it will remain similar till the end.

On the other side of the pond, variable interest rates are inherent with MCLR that causes a fluctuation of the interest rates whenever RBI changes in the repo rate. Therefore, if you select variable interest rates, you can experience increased or decreased interest rates over time. However, borrowers always favour variable interest rates since they are commonly more economical than fixed rates. 

Why should you compare the 2 wheeler loan interest rate before appealing?

The prime reason to compare the interest rate for bike loans is you can enjoy a variety of interest rates available to you. The table mentioned above displays a great comparison from leading banks of India. You will have an idea regarding which lender will cost you how much. It will eventually help you calculate the value you require to repay monthly basis on each of these options. An EMI calculator will also help you 

evaluate your spending. 

This way, you can dodge any hidden tricks and opt for the cheapest loan in town. Besides, comparing other parameters like loan pay off tenure period and processing fees, including associated charges, will also assist you in determining a loan that best suits your current needs.

How would an EMI Calculator help you?

Using an EMI Calculator before applying for the two-wheeler loan will help you in many aspects. It will show you an anticipated figure that you require to pay off to the lender each month in the form of EMIs. Your EMI value will primarily depend on the principal loan amount, tenure period and most importantly, interest rate. 

The Two wheeler EMI calculator is a unique yet magical tool that helps the user find out monthly EMI in a matter of breaths. It is straightforward and handy to use. You just need to place your parameters to get your EMI and loan results instantly. 

Closure:

A two-wheeler loan is a reliable and safe option for an individual to get the dream bike. In that case, if you can opt for a 2 wheeler loan interest rate by comparing various interest rates provided by different lenders, it will be a cherry on the cake situation for you. It will also cost you low monthly EMIs. Hence, you can purchase a motorbike at an economical rate as well. 

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