Bike Loan EMI Calculator

Loan Amount ₹1,00,000
Interest Rate (% p.a.) 10%
Loan Tenure 3 Years
Monthly EMI
₹3,227
Principal Amount₹1,00,000
Total Interest Payable₹16,172
Total Amount Payable₹1,16,172
Interest per ₹100 Borrowed₹16
💡 Good deal — your total interest cost is low. A shorter tenure saves more.
Principal vs Interest
Principal
Interest

Year-wise Loan Repayment Schedule

See how your outstanding balance reduces each year through EMI payments.

YearOpening BalancePrincipal PaidInterest PaidClosing BalanceP vs I Split

How to Use the Bike Loan EMI Calculator

Planning to buy a new bike or scooter on loan? Before you walk into the showroom or apply online, knowing your exact monthly EMI helps you set a realistic budget and avoid being surprised by the actual outgo. This calculator gives you results in seconds — no login, no signup.

Three Inputs, Instant Answer

  1. Loan Amount: Enter the amount you want to borrow. This is typically the on-road price of the bike minus your down payment. Most lenders finance 85%–95% of on-road price. Example: bike costs ₹1,20,000 on-road, you pay ₹20,000 down — loan amount = ₹1,00,000.
  2. Interest Rate: Enter the rate quoted by your lender. Bank rates typically range from 8.5% to 15% p.a. NBFCs like Bajaj Finance charge 14%–20%. If unsure, use 10%–12% as a ballpark for bank financing.
  3. Tenure: Choose 1 to 5 years. A shorter tenure means higher EMI but less total interest. A longer tenure lowers EMI but increases the total cost of the loan.

EMI Formula Used

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

P = Loan amount  |  R = Monthly rate = Annual rate ÷ 1200  |  N = Tenure in months

Example: ₹1,00,000 at 10% for 3 years → R = 10/1200 = 0.00833, N = 36
EMI = [1,00,000 × 0.00833 × (1.00833)^36] / [(1.00833)^36 – 1] = ₹3,227/month
👉 Note on processing fee: Most banks charge a processing fee of ₹500 to ₹3,000 (or 1%–2% of loan amount) on bike loans, deducted upfront. This is not included in the EMI. Factor it into your total borrowing cost — especially for smaller loan amounts where the fee is a higher percentage.

Bike Loan Interest Rates – All Lenders 2026

Two wheeler loan interest rates vary significantly between banks and NBFCs. Banks generally offer lower rates but have stricter eligibility. NBFCs are more accessible but charge higher rates. Compare before you decide.

SBI Two Wheeler Loan
8.50% – 12.50% p.a.
Processing: Nil to 0.5%
HDFC Bank
9.50% – 14% p.a.
Processing: up to ₹3,500
ICICI Bank
9.75% – 14.50% p.a.
Processing: up to 2%
Axis Bank
10.50% – 15% p.a.
Processing: up to 2%
Bank of Baroda
8.90% – 13% p.a.
Processing: 0.5% + GST
PNB
9.25% – 13.50% p.a.
Processing: 0.25% – 1%
Bajaj Finance
14% – 20% p.a.
Processing: up to 3%
Hero FinCorp
12% – 22% p.a.
Processing: up to 2.5%
TVS Credit
15% – 24% p.a.
Processing: varies
Muthoot Capital
13% – 23% p.a.
Processing: up to 2%
LenderTypeStarting RateMax FinanceMax TenureBest For
SBIPSU Bank8.50%95% on-road5 YearsGovt employees, SBI salary account
Bank of BarodaPSU Bank8.90%90% on-road5 YearsGovt / PSU employees
PNBPSU Bank9.25%85% on-road5 YearsPNB salary account holders
HDFC BankPrivate Bank9.50%100% on-road*5 YearsHDFC salary account, pre-approved
ICICI BankPrivate Bank9.75%95% on-road5 YearsiMobile pre-approved customers
Axis BankPrivate Bank10.50%90% on-road4 YearsSalaried with Axis salary account
Bajaj FinanceNBFC14%100% on-road5 YearsLow CIBIL, first-time borrowers
Hero FinCorpNBFC12%100% on-road5 YearsHero brand bikes, dealer tie-up

*100% financing available only to select customers with CIBIL 750+. Rates are indicative and subject to change.

Bike Loan EMI Reference Table 2026 – Common Loan Amounts

Use this ready table to quickly check your monthly EMI without using the calculator. All figures use the standard reducing-balance formula.

Loan AmountRate (p.a.)1 Year2 Years3 Years5 YearsTotal Interest (3 yr)
₹50,00010%₹4,396₹2,307₹1,614₹1,062₹8,104
₹75,00010%₹6,594₹3,461₹2,420₹1,594₹12,120
₹1,00,00010%₹8,792₹4,614₹3,227₹2,125₹16,172
₹1,00,00012%₹8,885₹4,707₹3,321₹2,224₹19,556
₹1,50,00010%₹13,188₹6,921₹4,840₹3,188₹24,240
₹1,50,00012%₹13,328₹7,061₹4,982₹3,337₹29,352
₹2,00,00010%₹17,584₹9,228₹6,453₹4,250₹32,308
₹2,00,00014%₹17,861₹9,612₹6,835₹4,654₹46,060
₹3,00,00010%₹26,376₹13,842₹9,680₹6,374₹48,480
₹5,00,00012%₹44,424₹23,536₹16,607₹11,122₹97,852
💡 Tenure vs total interest: On a ₹1 lakh bike loan at 10%, choosing 5 years instead of 3 years reduces your EMI by ₹1,102 per month (₹3,227 vs ₹2,125) but costs you ₹11,328 more in total interest (₹27,500 vs ₹16,172). Always compare the total cost, not just the monthly EMI.

Bike Loan Eligibility & Documents Required (2026)

Eligibility Criteria

  • Age: 18 to 65 years at loan maturity
  • Employment: Salaried or self-employed
  • Minimum income: ₹10,000–₹15,000/month (varies by lender)
  • CIBIL score: 650+ preferred (NBFCs accept lower)
  • Work experience: 6 months to 1 year minimum
  • Residence: Must be Indian citizen

Documents Required

  • PAN Card (mandatory)
  • Aadhaar Card or Voter ID (address proof)
  • Last 3 months salary slips (salaried)
  • Last 6 months bank statement
  • Latest ITR or Form 16 (some lenders)
  • 2 passport-size photographs
  • Bike quotation from dealer

Loan Features & Limits

  • Loan amount: ₹10,000 to ₹10,00,000
  • Finance: 85%–100% of on-road price
  • Tenure: 1 to 5 years (some NBFCs: 6 years)
  • Processing fee: ₹500 to 3% of loan amount
  • Foreclosure: After 6–12 EMIs; charge 2%–5%
  • Collateral: Bike itself serves as security (hypothecation)

What Affects Your Rate?

  • CIBIL score: 750+ gets best rate; below 650 = higher rate or rejection
  • Bike type: Electric bikes may get lower rates at some banks
  • Loan amount: Higher loan may get better rate (lower per-unit cost)
  • Salary account: Bank where salary is credited often gives better rate
  • Down payment: Higher down payment = lower LTV = better rate
⚡ Electric Bike Loan: Several banks and NBFCs offer preferential rates for electric two-wheelers (EVs) as part of green lending initiatives. SBI offers EV two-wheeler loans at 8.50%–10% — one of the lowest rates in the market. Additionally, EV purchases qualify for income tax benefit u/s 80EEB — interest on EV loan up to ₹1.5 lakh is tax-deductible under the Old Tax Regime.

6 Tips to Get the Lowest Bike Loan Interest Rate

1. Apply at the Bank Where Your Salary Is Credited

If your salary is credited to SBI, HDFC Bank, or ICICI Bank, applying for a bike loan at the same bank gives you access to preferential rates — often 0.5%–1% lower than the standard rate — because the bank can verify your income in real time without requiring additional documentation.

2. Maintain a CIBIL Score Above 750

Your CIBIL score is the single biggest factor in determining your bike loan rate. A score of 750+ puts you in the best rate slab at most banks. If your score is below 700, clear any outstanding credit card dues and avoid applying for new credit for 3–6 months before applying for the bike loan.

3. Make a Higher Down Payment

Banks view higher down payments as lower risk. Paying 20%–30% of the bike’s on-road price upfront instead of the minimum 5%–10% can bring down your interest rate and also reduces your total EMI burden and interest outgo significantly.

4. Compare NBFCs vs Banks — Don’t Just Go with the Dealer’s Finance Partner

Bike showrooms often push you towards their captive finance partner (Bajaj Finance, Hero FinCorp, TVS Credit) because of the referral commission. These NBFCs typically charge 12%–20% p.a. versus 8.5%–12% at banks. Take 2 extra days to get quotes from your bank before accepting the showroom’s financing offer.

5. Choose Shorter Tenure if Budget Allows

A 2-year tenure versus a 5-year tenure on a ₹1 lakh loan at 10% saves you ₹11,328 in total interest. If you can handle a higher EMI, opting for a 1 or 2 year tenure is financially significantly better — and you own the bike outright much sooner.

6. Consider an Electric Bike for Lower Rates and Tax Benefits

Electric two-wheelers attract preferential loan rates at PSU banks (SBI starts at 8.5% for EVs), lower road tax in many states, and a tax deduction on interest up to ₹1.5 lakh under Section 80EEB for Old Regime taxpayers. If you are comparing a petrol bike and an e-scooter in a similar price range, the total cost of ownership of the EV is often lower when these financial benefits are factored in.

Frequently Asked Questions – Bike Loan 2026

Bike loan interest rates in India 2026 range from 8.5% to 24% p.a. depending on the lender. PSU banks like SBI and Bank of Baroda offer the lowest rates starting at 8.5%–8.9% for salaried customers with a good CIBIL score. Private banks like HDFC and ICICI offer 9.5%–14%. NBFCs like Bajaj Finance and Hero FinCorp charge 12%–22% but are more flexible with documentation and credit profiles. Your actual rate depends on your CIBIL score, income, employer, and the specific bike model.
For a ₹1 lakh bike loan at 10% p.a.: 1-year tenure = ₹8,792/month; 2-year = ₹4,614/month; 3-year = ₹3,227/month; 5-year = ₹2,125/month. At 12% p.a.: 3-year = ₹3,321/month; 5-year = ₹2,224/month. The total interest paid over 3 years at 10% is ₹16,172 — and over 5 years it is ₹27,500. Use the calculator above for exact figures for your specific loan amount and rate.
Yes — NBFCs like Bajaj Finance, Hero FinCorp, and Muthoot Capital offer bike loans to applicants with CIBIL scores as low as 600–620. However, the interest rate will be significantly higher (16%–24% p.a.) to compensate for the higher risk. Banks typically require a minimum CIBIL score of 650–700. If your score is low, you can improve it within 3–6 months by clearing outstanding dues, reducing credit card utilisation, and avoiding new credit applications before reapplying at a bank for a better rate.
Yes — most banks and NBFCs allow prepayment of bike loans. However, most lenders impose a lock-in period of 6–12 EMIs before you can prepay. After the lock-in, foreclosure charges of 2%–5% on the outstanding principal apply. Some banks (especially PSU banks like SBI and Bank of Baroda) charge lower or zero prepayment penalty on floating rate loans. If you plan to prepay early, check the prepayment terms before taking the loan — a slightly higher rate with no prepayment penalty can sometimes be better if you plan to close the loan early.
Generally, no — bike loan interest for personal use is not tax deductible. However, there are two exceptions: (1) If you use the bike for business purposes, the interest paid can be claimed as a business expense against business income; (2) If you purchase an electric two-wheeler, the loan interest up to ₹1.5 lakh per year is deductible under Section 80EEB of the Income Tax Act under the Old Tax Regime — provided the loan was taken from a financial institution and the EV was purchased for personal use. This benefit is not available under the New Tax Regime.
All regulated banks and NBFCs in India are required to use the reducing balance method for EMI calculation — where interest is charged only on the outstanding principal, not the original loan amount. Some older or informal dealers may quote a “flat rate” (e.g., 5% flat = interest calculated on original principal for entire tenure), which is significantly more expensive. A flat rate of 5% is actually equivalent to approximately 9%–10% on a reducing balance basis. Our calculator uses the reducing balance method, which is what your bank will use.
Disclaimer: All bike loan EMI calculations on this page are for informational purposes only. Interest rates shown are indicative based on information available in April 2026 and may vary. Actual EMI, interest rate, and loan terms are determined by the lender based on your credit profile and other factors. Always confirm the final terms with your lender before signing any loan agreement.