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Get your dream bike with ICICI Bank's competitive Bike Loan interest rates. Enjoy attractive rates tailored to suit your needs, whether at a floating or fixed rate.
Take advantage of the lower EMIs and no prepayment charges on floating rates. Secure your Bike Loan that fits your budget and lifestyle. Experience hassle-free loan processing and flexible repayment terms. Your ride into the future with ICICI Bank's affordable interest rate on Bike Loans just got easier !
Two Wheeler Loan Interest Rate 2024
Introducing ICICI Bank's comprehensive breakdown of Bike Loan interest rates. Learn the details of interest rates tailored to suit your Two-Wheeler financing needs. From competitive rates for floating and fixed loans to flexible repayment options, explore how ICICI Bank makes your dream bike a reality with affordable financing solutions.
| Quarter ended on March-2024 | Minimum | Maximum | Mean |
|---|---|---|---|
| Interest Rate | 10.49% | 26.00% | 19.36% |
Note:
- The range of interest rates provided above is with respect to loans to individuals disbursed during Quarter 4 - FY: 2023-24.
- It includes fixed rate of interest and is based on factors such as customer relationship, asset segment, tenure of loan etc.
- It excludes subsidy and government schemes.
- Mean rate = Sum of rate of interest of all loan accounts / Number of all loan accounts.
Two Wheeler Loan Charges
ICICI Bank's Bike Loan interest rates in India generally range from 10.25% to 26.10% per annum. These rates are subject to change based on factors like loan amount, tenure and the borrower's creditworthiness. It's essential to examine the terms and conditions to understand the specific charges associated with your loan.
SR. No |
Charges |
Amount |
|---|---|---|
A. |
On Application |
|
i. |
Loan Processing Fee |
Upto 4% of loan amount |
ii. |
Charge for Loan Documentation |
₹ 500 + applicable GST |
iii. |
Registration Certificate (RC) Collection Fees |
₹ 600 + applicable GST |
iv. |
Stamp duty charges |
At Actuals as per State Stamp Duty Act + applicable GST |
v. |
Information Utility Charges (Only for Corporate Cases) |
₹ 300 + applicable GST |
B. |
During the term of Loan (details about contingent charges) Penal Charges |
|
i. |
Part Payment Charges |
Nil for loan seasoning above 24 months |
3% (of part payment amount) for loans seasoning up to 24 months |
||
ii. |
Penal charges for late payment |
5% per annum + applicable GST will be charged on the overdue EMI until repayment which may be payable pursuant to the applicable laws and terms and conditions |
iii. |
Penal Charge for dishonour of Cheque/AD/ECS/NACH per transaction |
₹ 500 + applicable GST per instance of bounce/return/dishonour of cheques and/or any payment instruction including AD/ECS/NEFT/E-mandate |
iv. |
Loan Cancellation Charges |
1. Digital Lending - NIL Cancellation within Free Look / Cooling off period, Cancellation post cooling Period & Before 1 EMI date (i.e. from 16th day till 1st EMI date) – ₹ 2,500 + applicable GST |
C. |
Service Charges |
|
i. |
Duplicate Repayment/Amortization schedule charges |
₹ 200 + applicable GST for physical print out, Nil for digital channels |
ii. |
Statement of Account charges |
₹ 200 + applicable GST for physical print out at the branch |
iii. |
Prepayment statement charges |
₹ 200 + applicable GST for physical print out at the branch |
iv. |
Duplicate No Objection Certificate / No Due Certificate charges |
₹ 250 + applicable GST |
v. |
Revalidation of No Objection Certificate charges |
₹ 250 + applicable GST |
vi. |
No Objection Certificate to convert from private to commercial or from commercial to private charges |
₹ 250 + applicable GST |
vii. |
Repayment mode swap charges |
₹ 500 + applicable GST |
viii. |
Cash Transaction Charges (for repayment of EMI dues in cash at branches) |
₹ 100 + applicable GST |
ix. |
Prepayment charges ( on Foreclosure) |
4% on POS |
D. |
Loan related recovery charges (if applicable) |
|
i. |
Charges incurred in SARFAESI proceedings |
At actuals |
ii. |
Charges incurred in sending different notices |
At actuals |
iii. |
Enforcement charges |
At actuals |
iv. |
Non Maintenance of Mode of Payment charges (NMMP) |
₹ 800+ GST |
v. |
Paper advertisement charges |
At actuals |
vi. |
Repossession charges |
At actuals |
vii. |
Security guard charges |
At actuals |
Note:
All above charges are exclusive of Goods & Services Tax (GST). Applicable GST, taxes and/or other statutory levies shall be levied over and above charges by the Bank.
Nil Prepayment charges on all fixed rate loans if loan is booked under priority sector lending and Borrower(s) type is Small or Micro & Loan amount is less than or equal to ₹50 Lacs. Further, Nil prepayment charges on all floating rate loans if Borrower(s) type is Small or Micro in accordance with MSE Code of Commitment.
Stamp Duty will be applicable as per actual. (As per State Stamp Duty Act applicable for the state)
The charges or fees given in above table are subject to change and the one recorded in loan application / agreement will be final binding.
For more information, please visit the nearest ICICI Bank branch or call our Customer Care.
The RBI through its Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice - Penal Charges in Loan Accounts’, has advised banks that penalty if charged, for non-compliance with the material Terms and Conditions of the loan contract will be treated as penal charges and not be levied in the form of penal interest that is added to the rate of interest charged on the loans/ advances. The RBI has further advised that there will be no capitalisation of penal charges i.e. no further interest will be computed on such penal charges. However, the above mentioned shall not affect the normal procedure for compounding of interest in the loan account.
The above guidelines are effective from Apr 01, 2024 and applicable for all fresh loan facilities executed from Apr 01, 2024. In case of an existing loan facility, the switchover to the new penal charges regime shall take place by the next review or renewal date or before Jun 30, 2024, whichever is earlier. The revised charges are as below:
Existing penal interest |
Applicable penal charges |
24% per annum |
5% per annum |
*Goods and Services Tax and other government taxes, levies, etc. applicable as per the prevailing rate will be charged over and above the mentioned penal charges.
Annual Percentage Rate
The Annual Percentage Rate (APR) is a method to compute the annualised credit cost, which includes the interest rate and the loan origination fee.
To calculate the same, please click here to download the APR calculator.
Documents required for a Two Wheeler Loan
Here are the documents required for applying a Two-Wheeler Loan from ICICI Bank:
- Proof of identity: Aadhaar Card, PAN Card, Passport or Voter ID
- Proof of address: Aadhaar Card, utility bills, Rental Agreement or Passport
- Income proof: Salary slips, Bank Statements or Income Tax returns
- Employment proof: Employment Certificate, Appointment Letter or Business ownership documents.
- Two-Wheeler details: Invoice, Registration Certificate and Insurance papers
- Passport-size photographs: Recent passport-sized photographs of the applicant
- Any other specific documents as requested by the bank at the time.
Two Wheeler Loan Interest Rates FAQs
Bike loans typically offer two types of interest rates: fixed and floating. A fixed interest rate remains constant throughout the loan tenure, providing predictability in repayments. In contrast, a floating rate varies with market dynamics and changes in monetary policy, leading to fluctuating EMI amounts over the loan period.
Interest rates typically differ for new and used Two Wheeler loans. New vehicles often attract lower interest rates due to their higher resale value and lower risk. Conversely, used Two Wheeler Loans usually have higher interest rates, reflecting the increased risk and lower resale value associated with pre-owned vehicles.
Several factors can influence Two Wheeler Loan interest rates including the borrower's credit score, income stability, employment history and relationship with the lender. The loan amount and tenure also play a role. Additionally, prevailing market conditions and the Reserve Bank of India's (RBI’s) policies can impact these rates.
To avail a Two Wheeler Loan at a low interest rate, maintain a high credit score, which is important for negotiating favourable terms. Comparing different lenders for the best Two Wheeler Loan interest rate is crucial. Opt for a shorter loan tenure to potentially reduce the total interest cost.
Here is how you can get a Two Wheeler Loan at a low interest rate:
- Credit check: Begin by assessing your credit score. A higher score indicates lower interest rates
- Smart down payment: Opt for a significant down payment to reduce both the loan amount and interest
- Optimal loan term: Choose a shorter loan term for potentially lower interest rates
- Negotiate terms: Don't hesitate to negotiate for better terms, including interest rates and fees
- Co-signer benefits: Consider a co-signer who has a good credit score for a lower interest rate
- Timely payments: Ensure timely EMI payments for a positive credit history and potential future rate benefits.
Additionally, maintaining a strong banking relationship can help you get competitive rates. Considering seasonal offers and promotions can lead to additional savings on interest rates.
Common fees for Two Wheeler Loans include processing fees, documentation charges and penalties for late payment. It is essential to consider additional expenses such as stamp duty and Registration Certificate (RC) charges. Some lenders may also impose fees for prepayment or foreclosure of the loan. It is good to be aware of these charges and factor them in when comparing various loan options. Each lender may have a distinct fee structure, making it essential for borrowers to carefully evaluate the terms to make informed decisions regarding their Two Wheeler Loans.
A high credit score can significantly impact Two Wheeler Loan interest rates, often leading to more favourable terms. It indicates the creditworthiness and reduces the lender's risk. On the other hand, a low credit score may result in higher interest rates, indicating increased risk for the lender.
Prepaying a Two Wheeler Loan can incur penalties or additional charges as it affects the lender's planned interest earnings. These charges, varying across lenders and loan agreements, compensate for the lender's lost interest income.
Consider various factors when choosing a two-wheeler loan. Look into the processing fee, which varies among lenders, and ensure you meet the eligibility criteria, including income requirements and credit score. Assess prepayment charges, as some lenders impose penalties for early repayment. Check the disbursal time to ensure timely fund availability. Evaluate these aspects comprehensively to make an informed decision.
