Two Wheeler Loan Interest Rates
Low interest rates on bike & scooter loans. Interest rates start @ 0.99%*
Maximum two-wheeler loan disbursement
Longer loan tenure of up to 48 months
The bike loan interest rate by Muthoot Capital starts from as low as 0.99%*. One of the first things you need to know when finalising a two wheeler loan is the interest rate. This can be a game changer, as it will show you the EMI amount and how it affects your monthly budget.
| Interest Rate | 0.99%* onwards |
| Maximum Repayment Tenure | 60 months |
| Processing Fee and Documentation Charges | Applicable as per the scheme |
Example: Aryan is buying a bike for ₹1.25 lakh. Muthoot Capital offers 95% of the total cost, allowing him to secure a loan of ₹1,18,750. With a repayment tenure of 48 months, the EMI will be approximately ₹3,127.
EMI Calculator
The interest rate depends on the credit history you have. The EMI you pay includes the principal amount of the loan along with the interest rate. So over the entire tenure, even a small difference in the interest rate could mean a huge difference.
Two Wheeler Loan Miscellaneous Charges
In addition to the interest rates, several other charges may apply to your Two-Wheeler Loan online:
| Two-Wheeler Loan Interest Rates | Starting from 0.99% |
| Loan Amount | Up to 3 lakhs |
| Loan Processing Fees | As per the scheme |
| Lowest EMI per month | Rs.2497/- for avg ticket size of Rs.85,000/- with 48 months tenure |
| Loan Tenure | 12 to 60 months |
| Prepayment/Foreclosure Charges | 4% |
| Default Interest | Interest charged based on loan IRR for the delay days. |
| Repayment Instrument Dishonour Charges | Rs.1000/- + GST |
| Stamp Duty | Nil |
| No Other Hidden Charges | |
Types of Two wheeler Loan Interest Rate
When you opt for a Two-wheeler Loan, you have two options to choose from in terms of interest rates- Fixed and Floating. They have some fundamental differences, which you can consider while choosing one for you:
| Fixed Interest Rate | Floating Interest Rate |
|---|---|
| This rate is determined at the beginning of the loan and remains the same throughout the tenure. Thus, you can plan your repayment accordingly. | A floating interest rate changes over time and is tied to a benchmark index. It adjusts periodically, reflecting market conditions and offering potential savings or increased costs depending on rate fluctuations. |
| Example: The EMI for a ₹1.25 lakh bike loan at a fixed interest rate of 0.99% per month for 4 years (48 months) is approximately ₹3,284.37. | Example: The EMI in this case depends on how the market rates are behaving. Therefore, the initial payments will be the same as fixed rates. |
Factors Influencing Two-Wheeler Loan Interest Rates
Several factors determine the interest rate on Two-Wheeler Finance. These include:
- Type of Vehicle: The interest rate varies depending on the type of bike you are purchasing. Each vehicle type has different financing needs and risk profiles, which affect the rate offered.
- Employment Nature: Salaried individuals generally enjoy lower interest rates compared to non-working professionals due to a steady and credible income source. A salaried individual’s ability to consistently repay the loan is more predictable, reducing the lender’s risk.
- Repayment Capacity: Your repayment capacity, assessed by considering your regular expenses and other financial commitments, influences the 2-Wheeler Loan amount and interest rate. This is known as the Loan-to-Value (LTV) ratio calculation. A higher repayment capacity typically results in better loan terms, including a lower interest rate.
Muthoot FinCorp Branches
If you have been searching ‘two wheeler loan near me’, we are here to serve you. Find your nearest branch and pay us a visit!
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Muthoot FinCorp Ltd.
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Thoppumpady
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No 16/1551K, 1st Floor, P T Jacob Rd, Kanankulathu
Thoppumpady
Ernakulam – 682005
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Muthoot FinCorp Ltd.
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Dilshad Garden
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Plot No 4, No 488/6, Ground Floor, Block West
Dilshad Garden
New Delhi – 110095
Near Radha Krishna Mandir
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Muthoot FinCorp Ltd.
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NIT
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No 5P/29, 1st Floor, Mittal Complex, P Block, Main Market
NIT
Faridabad – 121001
Above Indian Overseas Bank
Find Muthoot FinCorp Two Wheeler Loan Branch near you – Locate Now
Frequently Asked Questions
How does credit score impact the Two Wheeler Loan interest rates?
Credit score determines your creditworthiness as a borrower. The lender evaluates your repayment capacity based on it. Consequently, deciding interest rates as well.
What factors affect the Two Wheeler Loan interest rates?
The interest rate is influenced by the total cost of the bike, your credit score, and your income.
Can I lower my two-wheeler loan interest rate?
You might get better loan terms if you have a good credit score and a stable income.
How is the EMI calculated on a two-wheeler loan?
The EMI for a Two-Wheeler Loan is calculated using the EMI formula P x R x (1+R)^N / [(1+R) ^N-1], where P is the principal loan amount, R is the rate of interest, and N is the number of months.
Are Muthoot Capital’s two-wheeler Loan interest rates fixed or floating?
Interest rates are fixed at Muthoot Capital. However, they have lower interest rates for ladies than regular ones.
What is the current interest rate on two-wheeler loan?
Muthoot Capital Services Ltd. offers one of the lowest bike finance interest rate starting at 0.99% per annum. Reach out to our representative to find out the best interest rate available for you. However, you should be aware that the two-wheeler loan interest rate depends on many factors which are discussed in the next FAQ.
What are the main factors that affect the interest rate of two-wheeler loan?
The main factors that affect the two-wheeler loan interest rate are the loan amount, loan tenure, employment history and credit history of the borrower. If you have a healthy credit score, you will be charged a lower interest rate.
How to compare two-wheeler loan interest rates?
You can use our EMI calculator to compare the two-wheeler loan interest rates. The easy-to-use and free tool allows you to know the EMI you will pay based on the loan amount, loan tenure and the bike finance interest rate applicable. Once you have input all the details, your EMI is calculated instantly. Change the loan amount and tenure to compare the interest rate and decide the EMI (approximate) you are most comfortable paying.
What is the two wheeler loan interest rate scheme for women at muthoot capital?
The interest rate scheme for women at Muthoot Capital offers one of the interest rate starting as low as 0.99% per annum. Our customer care representative can help women complete the process of applying for a loan with ease. Contact 1800 102 1616 to know more of the loan schemes for women.
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