For some people, buying a two-wheeler stands as a crucial life achievement. However, not all people have the means to purchase their dream bike with a single payment. Hence, banks and NBFCs enable customers to obtain their desired bikes through instalment plan payments.

So, the interest rate of bike loan determines how much you pay in total. This guide details interest rate levels banks and NBFCs offer for their two-wheeler loans.

Lowest Bike Loans Interest Rate in 2025

There are a lot of bank and NBFCs that offer loans for your two-wheeler purchase. Here is a list of a few prominent banks that provide you with bike loans with their interest rates.

However, besides these banks, other banks offer you the best interest rate on bike loans. So, compare those and pick what you find best.

Types of Interest Loan Available for Two-Wheelers

A two-wheeler loan borrower can select from various interest rate types that control their payment terms. There exist two fundamental categories of interest rates. Knowing about these alternatives enables better choice selection for borrowers depending on their financial capabilities alongside market trend patterns.

• Variable Interest Rate

The interest rate from a variable structure will adjust up or down according to changes in both market environments along with the Reserve Bank of India's repo rate. An interest rate that varies over time enables borrowers to pay more or less each month as market factors evolve. So, it makes this choice attractive for people expecting falling interest rates.

• Fixed Interest Rate

A fixed interest rate on bike loan maintains its original value without changes from the beginning until the end of the loan term resulting in consistent monthly EMI amounts. Borrowers who need predictable payment amounts should select this loan type due to its lack of market-sensitive interest rates. Fixed interest rates start higher than varying interest rates because of their nature.

Factors Affecting the Interest Rate on Bike Loans in 2025

The Indian bike loan market uses various fundamental elements to establish the interest rate that affects borrowers' financial capabilities throughout the repayment period. Borrowers can evaluate multiple interest rates and EMI options through a bike finance calculator using the below-mentioned criteria.

• Your Credit Score

Financial institutions grant credit with reduced annual interest rates to borrowers with an excellent credit score exceeding 750. The risk assessment for lenders rates people with good credit as having minimal risks, while those with poor credit typically must pay higher interest rates or experience loan denial.

• Down Payment

A larger down is the amount the lender needs to loan, thus making them less risky. Most banking institutions and non-banking financial companies reward borrowers who pay substantial upfront funds for bike purchases. It is because this action shows both financial reliability and repayment dedication.

• Bike Type

The model and category of the bike influence loan terms. Premium and superbike models receive higher interest rates since they have higher market value and possible depreciation value. Regular commuter bikes receive low interest rates because banks provide them to people who need affordable financing.

• Relationship with Lender

NBFCs and banks tend to provide preferential interest rates to their existing customer base. Customers with a good payment track record at their lender will receive personalised loan products with lower interest costs and adaptable repayment conditions.

• Monthly Income

The lender examines your income amount to evaluate how well you can repay the loan. The strong presence of monthly revenue demonstrates to lenders that payments will come on time, leading them to lower default risk. People earning less money typically receive higher interest rates from lenders because they believe lower-income persons have a higher probability of missing loan payments.

• Age

Loan approvals with interest rates depend on your age. Stable-employed young professionals usually receive optimal loan conditions for their credit applications. Individuals approaching retirement age have reduced future earning potential. So, they may receive higher interest rates due to increased payment risk.

Documents Needed for Two-Wheeler Loan Application

The process of a two-wheeler loan application demands an applicant to submit crucial documentation that proves their identity and verifies their employment along with residential information. The required documents for two-wheeler loans are-

• PAN card
• Aadhaar card
• Passport (optional)
• Voter ID and sometimes utility bills, rental agreements
• Salary slips in addition to bank statements and ITR documents
• Passport-size photographs

Conclusion

Selecting a two-wheeler loan requires full awareness of interest rates, as this information helps make wise choices. Small amounts of time spent at the beginning of your two-wheeler loan process will help you obtain better terms that decrease the costs. Then, you can just use a bike finance calculator and calculate the interest rate to better finance management.