Two-wheeler loan: Check lowest interest rates

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The Covid-19 pandemic has taught many the need for personal mobility. If you are planning to buy a two-wheeler, most of the financial instructions of our country are ready to offer you a loan. But before taking any decision, you should remember a few important things in mind. Banks generally finance up to 90% of the value of a two-wheeler. The rest 10% is the down payment that you will have to pay out. A factor that plays an important role while sanctioning a loan is the CIBIL score which should be 750 or more. Else getting a loan at a relatively lower interest rate is not possible.

Loan amount

All the commercial banks and non-banking financial companies offer two-wheeler loans. The loan amount generally varies between Rs 1.5 lakh and Rs 10 lakh. The price of a basic two-wheeler generally varies between these figures. Banks generally take three to six days to process a two-wheeler loan.

Comparison

All except two lenders are public sector banks in the 9 cheapest two-wheeler loan givers. But State Bank of India (SBI), HDFC Bank or Axis Bank do not feature in this list since their loans carry relatively higher interest rates. At present UCO Bank offers the cheapest two-wheeler loan interest rate starting from only 7.20%. Central Bank of India in the second position with 7.25% interest rates. Bank of India (BoI), another public sector bank, in the third position. At present they are offering a two-wheeler loan at the interest rate of 7.35%.

On the other hand, SBI and Axis Bank offer a minimum 10.25% and 10.80% interest rate respectively, whereas HDFC Bank offers 12% interest rate.

What are banks offering?

If you are planning to take a two-wheeler loan, never forget to compare the offers available in the market. Money9 brings for you a look at the top 9 loan offerings by popular banks to buy two-wheelers.

– UCO Bank: 7.20% – Central Bank: 7.25% – Bank of India: 7.35% – Punjab National Bank (PNB): 8.45% – J&K Bank: 8.70% – Punjab & Sind Bank: 8.80% – Canara Bank: 9.00% – IDBI Bank: 9.80% – Union Bank: 9.90%

Eligibility criteria

There are various eligibility criteria for two-wheeler loan approval. Some of them are:

i) The borrower should be between the age group of 21 to 58 years. If the applicant is self-employed, his/her age should be between 21 years and 65 years.

ii) The borrower should have a minimum income of Rs 10,000 per month. The borrower must keep his or her identity proof, address proof, income proof, age proof, and bank account statement of the last three months and submit these documents while applying for the loan.

iii) Driving license is also mandatory to apply for a two-wheeler loan.