Enter your bike’s on-road price, down payment, interest rate, and tenure to calculate your monthly EMI. The calculator also shows the LTV ratio — helpful to know if your down payment meets the bank’s minimum requirement.
Current two-wheeler loan interest rates (April 2026)
| Lender | Interest rate | Max LTV | Max tenure |
|---|---|---|---|
| Hero FinCorp | 10.00–17.00% | 85–95% | 48 months |
| Bajaj Finance | 10.50–16.00% | Up to 95% | 48 months |
| HDFC Bank | 10.50–16.00% | Up to 90% | 48 months |
| SBI | 10.00–14.00% | Up to 85% | 36 months |
| TVS Credit | 9.99–18.00% | Up to 95% | 48 months |
| ICICI Bank | 10.75–16.00% | Up to 90% | 48 months |
| Bank of Baroda | 9.75–13.00% | Up to 85% | 36 months |
Manufacturer-linked NBFCs (Hero FinCorp, TVS Credit, Bajaj Finance) often process same-day with minimal documentation at the dealership.
Worked example: ₹1.2 lakh bike, ₹20,000 down, 10%, 24 months
| Metric | Value |
|---|---|
| Loan amount | ₹1,00,000 |
| Monthly EMI | ₹4,614 |
| Total payment | ₹1,10,736 |
| Total interest | ₹10,736 |
| LTV ratio | 83% |
A ₹1 lakh bike loan at 10% for 2 years costs you ₹10,736 in interest — about 10.7% of the principal. Short tenure keeps the total cost very manageable.
LTV limits for two-wheeler loans
Banks lend 75–95% of the on-road price. “On-road price” = ex-showroom + road tax + insurance + registration.
- Minimum down payment: typically 5–15% of on-road price
- For premium bikes (above ₹3–5 lakh): banks may cap LTV at 80%
- Used bikes: LTV typically capped at 70–75% of assessed value
Tenure comparison: shorter is almost always better
₹1 lakh bike loan at 10%:
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 12 months | ₹8,792 | ₹5,504 |
| 24 months | ₹4,614 | ₹10,736 |
| 36 months | ₹3,227 | ₹16,172 |
| 48 months | ₹2,537 | ₹21,776 |
For a bike loan, 24–36 months is the sweet spot. Unlike home loans, bike values depreciate sharply — a 4-year loan means paying interest on a bike that’s worth much less by the end.
New bike vs used bike loan
| Factor | New bike | Used bike |
|---|---|---|
| Interest rate | 9.75–16% | 15–22% |
| LTV | Up to 95% | Up to 75% |
| Documentation | Simple | RC, insurance history, inspection |
| Disbursal | Same day (at dealership) | 2–5 days |
For used bikes older than 5 years, most banks and NBFCs won’t offer loans. Private fintech lenders may, at 20%+ rates.
Electric two-wheelers — special financing
For EVs (Ola Electric, Ather, TVS iQube, Bajaj Chetak):
- FAME II subsidy has ended but state subsidies may apply (up to ₹15,000–₹25,000)
- Hero FinCorp and Bajaj Finance offer EV-specific products at 9.99–12%
- Battery replacement cost (₹25,000–₹50,000 after 4–5 years) should factor into total cost of ownership
What you need to apply
Salaried:
- Aadhaar + PAN
- 2 months salary slips
- 3 months bank statement
Self-employed / student:
- Aadhaar + PAN
- Bank statement (3–6 months)
- Some lenders require co-applicant for students
Most dealership-linked NBFCs approve in 30 minutes with just Aadhaar + PAN for amounts below ₹1 lakh.
Frequently asked questions
Can I get a bike loan with no down payment (zero down)?
Some NBFCs advertise 100% financing but it is effectively built into a higher rate or processing fee. True zero-down products exist mainly for premium manufacturer relationships. For most bikes, plan for at least 10% down payment.
How does prepayment work on a bike loan?
Fixed-rate bike loans from banks may charge 2–5% prepayment penalty. NBFCs vary — Hero FinCorp allows foreclosure after 12 EMIs. Given the short tenure and small principal, prepayment benefit is modest — calculate before paying the penalty.
Does a bike loan build credit history?
Yes. A bike loan is often the first credit product for young earners. Timely payments for 24–36 months meaningfully improve CIBIL score — making future home or car loans cheaper. This secondary benefit makes a bike loan useful even if you could pay cash.
Sources
- Hero FinCorp, Bajaj Finance, HDFC Bank two-wheeler loan rate cards (April 2026)
- RBI Master Direction on Vehicle Loans
- CIBIL credit-building guidelines