The sale of two-wheelers is crucial in India since it is an index of consumption in the economy. In FY24, this segment recorded a volume growth of 9.8%. This includes growth in both internal combustion engine vehicles as well as electric vehicles.
Like passenger cars, the sale of two-wheelers is largely fuelled by the easy availability of finance from banks. Let’s see what interest rates prominent banks are charging on loans given to purchase motorbikes and scooters.
SBI, HDFC Bank 2 wheeler loan interest rates
The biggest bank of India, SBI, offers 2-wheeler loans to anyone who is aged between 18 years and 65 years. As much as 85% of the on-road price of the vehicle is offered as loan. In order to get this loan one needs a minimum monthly income of Rs 10,000. Others must have at least an annual income of Rs 1.5 lakh. The loans given for buying 2-wheelers range between Rs 50,000 and Rs 3 lakh.
HDFC Bank, India’s largest private sector lender, charges a minimum interest rate of 14.5%. The actual rate depends on the credit score and other parameters of the creditworthiness of the applicant. The processing charges can be a maximum of 2.5% of the loan amount. There are additional charges for premature closure of loans too.
ICICI Bank, Axis Bank 2 wheeler loan interest rates
The interest rate that ICICI Bank has charged on 2-wheeler loans in the April-June 2024 period was between 10.25% and 25.12% — the mean being 19.73%. The loan processing fee can be a maximum of 4% of the loan amount. For late payment of EMI, the bank charges penal interest at 5% (per annum) plus GST on the overdue EMI.
Axis Bank charges 6.65% to 15.65% over and above MCLR which stands at 9.35%. It makes an effective interest rate band between 16% and 25% per annum on 2-wheeler loans. It would also charge a processing fee, the ceiling of which is 2.5% of the loan amount. Penal charges for default in EMI payment will be 8% (per annum) of the applicable interest rate on the overdue amount.
The sales of two-wheelers in a crucial indicator of the state of the economy, especially of income in the rural sector of India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
