Two Wheeler Loan Interest Rate - L&T Finance

Current Two Wheeler Loan Interest Rate

Our Two Wheeler Loans offer competitive bike finance interest rate options, making your dream ride affordable. With loan amounts up to ₹ 20 Lakh and flexible tenures ranging from 12 to 60 months, you can tailor your repayments to suit your financial plan. Our Bike Loan interest rates are designed to provide the best value, ensuring a smooth and hassle-free borrowing experience.

Types of Two Wheeler Interest Rates

Fixed Interest RateFloating Interest Rate
Meaning - The interest rate remains fixed throughout the loan tenure.Meaning - The interest rate varies with market fluctuations, typically linked to the repo rate.
Stability - Offers predictable monthly EMIs.Stability - Can offer lower initial interest rates, especially in a declining interest rate environment.
Interest Rates - Generally higher initial interest rates.Interest Rates - Potentially lower initial interest rates.
Who is it for - Best for those who prefer consistent monthly payments and want to avoid interest rate fluctuations.Who is it for - Suitable for borrowers who are comfortable with potential variations in EMIs and are willing to take advantage of potential interest rate decreases.
What is the risk - No risk of increasing interest rates.What is the risk - Potential risk of increasing interest rates, but also the potential for decreasing interest rates, leading to lower EMIs.
Flexibility - Less flexible, with fixed monthly payments.Flexibility - More flexible, as EMIs can adjust based on market conditions.
Impact of Market Conditions - Unaffected by market changes.Impact of Market Conditions - Dependent on economic conditions and may fluctuate with changes in the repo rate, potentially leading to lower interest costs.

Additional Charges of Two Wheeler Loan

In addition to the interest rate, it's important to be aware of the various fees and charges associated with two-wheeler loans. These charges can impact the overall cost of your loan. Here are some common additional charges:


Processing Fees: A one-time fee charged by the lender to process your loan application.

Repayment / EMI Bounce Charges: A penalty fee charged for delayed or missed EMI payments.

Part - Prepayment Charges: A fee charged for prepaying a portion of your loan before the scheduled tenure.

Foreclosure Charges: A fee charged for fully repaying the loan before the end of the tenure.

Legal and Recovery Charges: These charges may be incurred if the loan defaults, and legal action is required.

Factors that Affect Two Wheeler Loan Interest Rates

Several factors influence the interest rate you'll be charged on a two-wheeler loan:


1. Credit Score:

A higher credit score indicates better financial discipline and reduces the lender's risk, leading to lower interest rates.

2. Income Level:

A stable and consistent bank statement shows your ability to repay the loan, which can positively impact the interest rate.

3. Down Payment:

A larger down payment can reduce the loan amount, potentially leading to a lower interest rate.

4. Lender's Policies:

Different lenders have varying interest rate policies and may offer different rates for different models and customers.

5. Market Interest Rates:

Economic conditions and the prevailing interest rate environment can influence two-wheeler loan interest rates.

6. Vehicle Model and Value:

The type and value of the two-wheeler can also impact the interest rate offered.

7. Relationship with the Lender:

Existing customers with a good repayment history may be eligible for preferential interest rates.

Step-by-step guide to applying for a Bike Loan

Apply for Two Wheeler Loan with these steps


1. Apply online in just few minutes

Click on the "Apply Now" button within the Two Wheeler Loan section and fill out the form with your personal details and loan requirements

2. Get assistance from our representative

Our loan representative will contact you, and share all the available loan offers with dealership details, nearest to your location

3. Eligibility and document verification

Visit the dealership, where our representative will check your eligibility and documents to proceed with your loan

4. Drive your Two-Wheeler home

After approval, your loan amount will be directly disbursed to the dealership for a seamless purchase process

FAQs & Support

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How does credit score impact the Two Wheeler Loan interest rates?

A high credit score typically leads to lower interest rates as it indicates low credit risk, while a low score may increase rates due to higher perceived risk by lenders.

Are there any hidden charges in Two Wheeler Loan interest rates?

While most lenders aim for transparency, additional charges such as processing fees, documentation charges and penalties for late payments or prepayments can exist. It’s crucial to read the loan agreement carefully to avoid surprises.

Are there any penalties or additional charges for prepaying a Two Wheeler Loan?

Prepayment charges vary, so it's important to check your loan agreement for specific terms regarding prepayment.

What are the common fees and charges associated with Two Wheeler Loans?

Common fees include processing fees, documentation charges, and penalties for late payments or prepayments. Reviewing and discussing the loan agreement with the lender can help clarify all potential charges.

How do I check my eligibility for a Two Wheeler Loan interest rate?

Eligibility can be assessed by reviewing your credit score, stability and existing debts. L&T Finance provides online eligibility calculators to give potential borrowers a quick assessment.

How do down payments impact Two Wheeler Loan interest rates?

Higher down payments can reduce the loan amount, potentially leading to lower interest rates as the lender's risk is minimised. This can also improve your chances of securing better loan terms.

What is the EMI for a Two Wheeler Loan with different interest rates?

EMIs depend on the loan amount, tenure, and interest rate. Use our online EMI calculator to input specific values and get an estimated monthly payment for various interest rates.

Are Two Wheeler Loan interest rates higher for self-employed individuals?

Self-employed individuals may face higher interest rates due to perceived income instability. However, providing comprehensive financial documentation and maintaining a strong credit profile can help negotiate better terms.

What are the current Two Wheeler Loan interest rates in India?

At L&T Finance, Two Wheeler Loan interest rates EMI start from as low as 2299* per month.

How are interest rates calculated for Bike Loans?

Bike Loan interest rates are calculated based on the principal amount, tenure, and interest rate. During the calculation, lenders also consider the applicant's credit score, bank statement, and current market conditions.

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