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Own your dream bike with easy Two-Wheeler Loans from ICICI Bank. Our Two-Wheeler Loan interest rates are affordable and start at 10.25%* per annum. Make your budgeting simpler with fixed interest rates and flexible repayment tenures. With ICICI Bank's Two-Wheeler Loan, you can benefit from flexible loan terms, easy documentation and speedy approvals and own your dream bike without any hassles.
Two Wheeler Loan Interest Rate 2025
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.
| For the quarter that ended on Dec-2024 | Minimum | Maximum | Mean |
|---|---|---|---|
| Interest Rate | 10.25% | 24.10% | 19.53% |
Note:
- The below rates are pertaining to Quarter ended on Dec-2024 i.e. Quarter 3 of FY 2024-25
- It is a 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 Loans / Number of Loans
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 |
As per State Stamp Duty Act + applicable GST |
v. |
Information Utility Charges (Only for Corporate Cases) |
₹ 300 + applicable GST |
B. |
During the term of the Loan (details about contingent charges) Penal Charges |
|
i. |
Part Payment Charges |
Nil for loan seasoning above 24 months |
3% (of the part payment amount) within 24 months |
||
ii. |
Penal charges for late payment |
5% per annum + applicable GST will be charged on the overdue EMI until repayment |
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 |
|
C. |
Service Charges |
|
i. |
Duplicate Repayment/Amortization schedule charges |
₹ 200 + applicable GST for physical printout, Nil for soft copy (digital version) |
ii. |
Statement of Account charges |
₹ 200 + applicable GST for physical printout 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% of POS (current outstanding amount) |
D. |
Loan related recovery charges (if applicable) |
|
i. |
Charges incurred in SARFAESI proceedings |
As per actuals |
ii. |
Charges incurred in sending different notices |
As per actuals |
iii. |
Enforcement charges |
As per actuals |
iv. |
Non Maintenance of Mode of Payment charges (NMMP) |
₹ 800+ GST |
v. |
Paper advertisement charges |
As per actuals |
vi. |
Repossession chargesAs per actuals |
As per actuals |
vii. |
Security guard charges |
As per actuals |
Note:
All the above amounts are exclusive of Goods & Services Tax (GST). Applicable GST, other taxes and/or other statutory levies shall be levied over and above these charges.
There are nil charges for prepayment on all fixed-rate loans if the loan is booked under Priority Sector Lending (PSL), the borrower’s type is Small or Micro Loan and the amount is less than or equal to ₹ 50 lakh. Further, there are nil charges for prepayment of all floating-rate loans if the borrower(s) type is Small or Micro in accordance with the MSE Code of Commitment.
Stamp Duty will be applicable as per actuals (as per State Stamp Duty Act applicable for the state)
The charges or fees given in above table are subject to change. The charge(s) mentioned in the loan application / agreement will be final and binding.
For more information, please visit any 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.
How to apply for a Two-Wheeler Loan from ICICI Bank?
- Use ICICI Bank Internet Banking or the iMobile app to apply online for a Two-Wheeler Loan.
- Select the two-wheeler of your choice.
- Customise your loan by adjusting the tenure and loan amount to meet your needs.
- To complete your loan application, enter the required information.
- Get approved right away and enjoy your bike ownership.
Two Wheeler Loan Interest Rates FAQs
There are two types of interest rates: fixed interest rate and floating interest rate.
However, ICICI Bank offers a fixed interest rate only, which remains constant throughout the loan tenure, providing predictability in repayments.
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, you need to maintain a high credit score. You can also compare Two- Loan interest rates offered by different lenders. Apart from this, below are some of the tips to get a Two-Wheeler Loan at a low interest rate:
Maximum down payment: Opt for a significant down payment to reduce both the loan amount and the interest.
Optimal loan term: Choose a shorter loan term for potentially lower interest rates.
Negotiate terms: Negotiate with the lender for better terms including the interest rates and fees.
Co-signer benefits: Consider a co-signer who has a good credit score to avail 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 secure competitive interest rates. You can also consider seasonal offers and promotions to save more.
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 an informed decision regarding their Two-Wheeler Loan.
A high credit score can significantly impact the Two-Wheeler Loan interest rate, often leading to more favourable terms. It indicates your creditworthiness and reduces the lender's risk. On the other hand, a low credit score may result in a higher interest rate, indicating increased risk for the lender.
You should consider various factors when choosing a Two-Wheeler Loan. Look into the processing fee, which varies as per lenders. Ensure that you meet the eligibility criteria, including income requirements and credit score. Assess prepayment charges, as some lenders impose penalties for early repayment. Check the disbursement time to ensure timely availability of funds. Evaluate these aspects comprehensively to make an informed decision.
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.
The Two-Wheeler Loan interest is calculated based on the principal amount, interest rate and loan tenure. The interest is calculated using the reducing balance method that charges interest only on the outstanding loan amount. You can use the Two-Wheeler Loan interest rate calculator to estimate your monthly EMI and total interest payable.
