Buying your dream bike is a great feeling, but getting there often involves taking out a bike loan. Whether you're eyeing a stylish two-wheeler or a high-performance superbike, knowing the Two-Wheeler Loan Interest Rate and associated charges is crucial to managing your finances.

What are the actual Bike Loan costs?

Before riding off into the sunset with your new bike, you must understand the upfront charges. These include fees for processing, documentation, and more.

• Interest Rate: The Two-Wheeler Loan Interest Rate starts at 14.5%, depending on the type of vehicle and your creditworthiness.
• Processing Fee: The bank charges up to 5% of the loan amount as processing fees.
• Stamp Duty and Statutory Charges: These charges vary depending on your state’s laws.
• Documentation Fee: This can be as much as 2.25% of the loan amount.
• RC Collection Fee: The fee for collecting your RC is 885, including GST.
• RTO Charges: These charges are applicable at actuals.

Post-Loan charges

After your Bike Loan is approved and the funds are disbursed, there are some ongoing charges you might need to pay if you encounter specific situations. Here's a quick overview of post-loan charges.

Common charges after disbursal

• Delayed Payment Charges: If you miss a payment, you'll be charged 18% per annum on the overdue amount.
• Legal and Repossession Fees: These charges are applied at actuals if there’s a legal issue or repossession.
• Repayment Mode Change Fee: Changing your repayment method costs 500.
• Payment Return Charges: If your payment bounces, you’ll pay 450 as a penalty.
• Amortisation Schedule Charges: If you need a new repayment schedule, it’s 50.

What happens if you repay early?

Life happens, and sometimes, you might want to repay your loan ahead of schedule. While this is possible, there are a few things you need to know:

• Up to 24 Months from First EMI: If you decide to close your loan within 24 months, you will be charged 5% of the outstanding principal.
• After 24 Months from First EMI: If you close the loan after 24 months, the charge is reduced to 3% of the principal outstanding.
• Micro and Small Enterprises: If you’re a Micro or Small Enterprise and availed of the loan up to 50 Lakh, you can close the loan without any prepayment charges if the closure is from your sources.

How to minimise fees?

• Maintain a Good Credit Score
• Make Timely Payments
• Avoid Loan Rescheduling
• Consider Prepayment

Conclusion

Getting a bike loan can be a smart way to finance your dream two-wheeler. By understanding the Two-Wheeler Loan Interest Rate and the associated charges, you can be financially prepared for the journey ahead. Before signing the dotted line, consider the processing fees, post-loan charges, and any special fees. This way, you can enjoy your new bike without any financial surprises!