Two-Wheeler Loan Interest Rates 2026
Current bike and scooter loan rates, flat vs reducing rates, and what decides the rate you get.
Updated 30 September 2026 · 8 lenders trackedWhat you need to know
Bank two-wheeler loan rates range from 8.90% (Indian Bank) to about 16% for good profiles, and up to 28% at the top of Axis Bank’s band. With the RBI repo rate at 5.25%, public-sector banks price bike loans off repo-linked rates or MCLR, while most private banks lend at fixed rates. Dealer and NBFC offers are often quoted as flat rates, which look much cheaper than they are.
Rates by lender
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Indian Bank Two-Wheeler LoanPublic sector bank | 8.90% – 10.40% | About 1% of loan + GST (aggregator) | Up to 4 years (48 months) | ₹3,175 | 10 Sep 2026 |
| Bandhan Bank Two-Wheeler LoanPrivate sector bank | 9.47% – 22.08% | Up to 5% of loan + GST (aggregator — check with bank) | Up to 4 years (48 months) | ₹3,202 | Sep 2026 (aggregator) |
| PNB Two-Wheeler Loan (PNB Saarthi)Public sector bank | 10.00% onwards | 0.50% of loan (min ₹500, max ₹1,000) + GST | Up to 5 years (60 EMIs) | ₹3,227 | Sep 2026 |
| Axis Bank Two-Wheeler LoanPrivate sector bank | 11.00% – 28.00% | Up to 2.5% of loan + GST | 12 – 48 months; super bikes up to 60 months | ₹3,274 | Sep 2026 (bank + aggregator) |
| SBI Two-Wheeler LoanPublic sector bank | 11.70% – 15.70% | 3% of loan + GST (50% waiver for salary-package customers) | Up to 5 years (60 months) | ₹3,307 | 16 Sep 2026 |
| Federal Bank Two-Wheeler LoanPrivate sector bank | 12.60% – 16.00% | Not published — ask for the KFS | Up to 4 years (48 months) | ₹3,350 | 19 Sep 2026 |
| Bank of Baroda Two-Wheeler LoanPublic sector bank | 13.60% – 13.65% | 2% of loan (min ₹250) + GST | Up to 5 years (60 months) | ₹3,398 | Sep 2026 |
| HDFC Bank Two-Wheeler LoanPrivate sector bank | 14.50% onwards | Up to 2.5% of loan + GST; documentation charges extra (aggregators cite up to 2.25%) | 12 – 48 months | ₹3,442 | Sep 2026 (aggregator) |
* At the lowest rate for 3 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
Flat rate vs reducing rate
Dealers and some NBFCs quote a flat rate: interest is worked out on the full loan for the full tenure, even though you repay part of it every month. Banks quote a reducing-balance rate. The table converts flat rates to their true reducing-balance equivalent for ₹1 lakh over 3 years.
| Quoted flat rate | EMI | Total interest | Equivalent reducing rate |
|---|---|---|---|
| 5.00% flat | ₹3,194 | ₹15,000 | 9.31% |
| 6.00% flat | ₹3,278 | ₹18,000 | 11.08% |
| 7.00% flat | ₹3,361 | ₹21,000 | 12.83% |
| 8.00% flat | ₹3,444 | ₹24,000 | 14.55% |
| 9.00% flat | ₹3,528 | ₹27,000 | 16.24% |
| 10.00% flat | ₹3,611 | ₹30,000 | 17.92% |
Rule of thumb: the reducing equivalent is roughly 1.8 – 1.9 times the flat rate for 2–3 year loans. The Key Facts Statement must show the APR, which includes this effect plus fees.
What decides your rate
A score of 750+ usually gets the lower end of the band; thin or weak files pay more.
PSU banks are cheapest; private banks and NBFCs charge more for speed and higher funding.
EVs get concessions at some banks (SBI −0.50%); superbikes are priced separately (SBI 12.55% – 14.55%).
Floating loans follow repo/MCLR and have no prepayment charge; fixed loans keep the EMI steady.
EMI per ₹1 lakh
| Rate | 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
|---|---|---|---|---|---|
| 9.00% | ₹8,745 | ₹4,568 | ₹3,180 | ₹2,489 | ₹2,076 |
| 11.00% | ₹8,838 | ₹4,661 | ₹3,274 | ₹2,585 | ₹2,174 |
| 13.00% | ₹8,932 | ₹4,754 | ₹3,369 | ₹2,683 | ₹2,275 |
| 15.00% | ₹9,026 | ₹4,849 | ₹3,467 | ₹2,783 | ₹2,379 |
| 18.00% | ₹9,168 | ₹4,992 | ₹3,615 | ₹2,937 | ₹2,539 |
EMI for every ₹1 lakh borrowed. Multiply by your loan amount in lakh.
Benchmark rates
| Benchmark | Rate | Note |
|---|---|---|
| RBI repo rate | 5.25% | Unchanged at the 5 Aug 2026 policy (neutral stance) |
| SBI EBLR | 7.90% | Repo + 2.65% (effective 15 Dec 2025) |
| SBI 1-year MCLR | 8.70% | Effective 15 Sep 2026 |
| HDFC Bank 1-year MCLR | 8.35% | Effective 7 Sep 2026 |
| PNB 1-year MCLR | 8.80% | Effective 1 Sep 2026 |
| Canara Bank 1-year MCLR | 8.75% | Effective 12 Jun 2026 |
Flat vs reducing rate
Frequently asked questions
Why is the dealer’s 6% or 7% rate not cheaper than a bank’s 11%?
Dealer rates are often flat. A 7% flat rate over 3 years equals about 12.83% on a reducing basis — more than most bank rates. Ask for the APR in the Key Facts Statement.
Will my EMI change if the repo rate changes?
Only on a floating-rate loan. Repo-linked loans reset within about 3 months of a repo change; MCLR-linked loans reset on the reset date. Fixed-rate loans keep the same EMI.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.