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Two-Wheeler Loans

Two-wheeler loans carry the highest rates in vehicle finance — often into the high teens or beyond — on small amounts where the processing fee is a large proportion of the total.

Typical two-wheeler loan rate
10 – 22% p.a.

Wide dispersion; dealer-arranged finance sits at the upper end.

as of 2026-08-15· Lender rate cardsreported

On a modest ticket over two years, the fee can add more to the effective cost than a percentage point of interest.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

Convert any flat rate before comparing. Dealer finance in this category frequently quotes a flat rate, which is roughly 1.8 times its reducing-balance equivalent over three years. A "9% flat" offer is not competing with an 11% reducing-balance bank loan; it is materially worse.

On a ₹1.2 lakh bike, the difference between a good and a bad loan is a few thousand rupees. That is worth an hour, not a week — but it is worth the hour, and the single most effective move is simply asking your own bank before signing at the showroom.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.

View the full breakdown (20 rows) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

What is the interest rate on a bike loan?

Commonly between 10% and 22% depending on lender, credit profile and whether the finance is arranged at the dealership. Dealer-arranged finance is usually at the upper end.

Is a flat rate the same as the interest rate I will pay?

No, and this is the main thing to check in this category. A flat rate charges interest on the full original amount for the whole tenure. Over three years it is roughly 1.8 times the equivalent reducing-balance rate.

Do I need a down payment for a two-wheeler loan?

Usually 10–20% of on-road cost, though zero-down-payment schemes exist for strong credit profiles — normally at a higher rate that costs more than the down payment would have.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.