About this calculator
Two-wheeler loans are typically ₹50,000 to ₹3 lakh, financed for one to four years. Rates run from about 9.5% at public sector banks to 24% or more at dealer-arranged non-banking finance options, so the spread is wider than for any other retail loan.
The loan is small enough that the interest difference between a bank and a dealer-financed scheme can equal 10–15% of the bike's price. Compare the two before you sign at the showroom.
How to use it
- Enter the amount you plan to borrow — not the asset price, unless you are financing the whole thing.
- Set the annual interest rate your lender has quoted, and the tenure in months.
- Read the monthly EMI, then check the amortisation table to see how much of it is interest in year one.
How the EMI is worked out
The calculator uses the standard reducing-balance formula used by every bank in India:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. In Excel the same answer comes from =PMT(rate/12, months, -amount).
What decides your interest rate
- Dealer-arranged finance is convenient but often the most expensive option.
- Bank two-wheeler loans usually require a salary account or an existing relationship.
- A shorter tenure of 24 months keeps the interest low on a small ticket.
- Processing fees of ₹500–₹3,000 can be a meaningful share of a small loan.
- Insurance and accessories added to the loan raise the financed amount.
Indicative interest rates
Indicative ranges compiled 28 October 2026. Rates change with the repo rate and your credit profile — always confirm with the lender before deciding.
| Lender | Indicative rate | Typical tenure |
|---|---|---|
| SBI | 9.60% – 13.50% | Up to 4 years |
| HDFC Bank | 10.00% – 14.00% | Up to 4 years |
| Bank of Baroda | 9.85% – 14.00% | Up to 4 years |
| Dealer / NBFC schemes | 15.00% – 24.00% | Up to 3 years |
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
Is a bike loan worth taking?
For a ₹1 lakh purchase, a bank loan at under 12% is reasonable if you need the vehicle now. If the only offer is a dealer scheme above 18%, saving for a few months is usually cheaper.
What is the minimum down payment for a two-wheeler loan?
Most lenders finance 80–90% of the on-road price, so a 10–20% down payment is normal.
Can I get a bike loan without a salary account?
Yes. Lenders accept bank statements, ITR or existing credit history. Rates are usually a little higher for non-salaried applicants.
How long does approval take?
Bank approvals can be same-day for existing customers. Dealer-arranged finance is often approved within an hour.
Does prepaying a bike loan make sense?
If the rate is above 15%, yes. On a small loan the interest saved is modest, so check the foreclosure charge first.
Are two-wheeler loans available for electric scooters?
Yes, and several lenders now offer slightly lower rates for EVs under green-lending schemes.
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Before you apply
Get the sanction letter and check three things: whether the rate is fixed or floating, what the processing fee is, and whether part-prepayment carries a charge. Those three lines decide the real cost of the loan, more than the headline rate does.
This page is updated when rate ranges change. Last verified 28 October 2026.