State Bank of India Two-wheeler Loan, State Bank of India provides two wheeler loans at fair interest rates and with long tenure. Minimum income required will be Rs. 50,000 per annum. Get loans with low processing fees and you can either apply for loans online or offline. The State Bank of India, founded in 1806 is one of the oldest commercial banks in Asia. It is a major banking and financial services public sector company with more than 24,000 branches and 59,000 ATMs.
It is the largest bank in India which has a 20% market share in deposits and loans among commercial banks, truly being a bank for every Indian.
India is one of the largest manufacturers and users of two-wheelers in the world. From scooters to super bikes India has it all. This kind of growth in motorcycle usage across the country is due to the availability of easy two-wheeler loans.
With most families in the country becoming nuclear, two-wheelers are an economic and fast way of travelling. With the swelling traffic on the roads it is very easy to maneuver through to quickly reach one’s destination.
While on the one hand, commuter bikes have found a place in Indian homes, motorcycle manufacturers like Royal Enfield and Harley Davidson are promoting their motor bikes as a lifestyle, and enthuse a biking culture which has resulted in biking groups who go on long trips which are taken well by audience and these bikes too have been gaining popularity.
India Two-wheeler Loan
The youth (age between 18 to 25) find it easier to afford a bike for their commutations as motor cycles are fuel efficient and affordable with the entry level motor-bikes start from Rs.40000.
With targets of zero emissions, India too is looking at electric two wheelers with all the major manufacturers either acquiring startups or developing their own electric vehicles.
Two-wheeler loans are relatively easier to obtain and their installments not very taxing it has become very easy to get a two-wheeler and pay off the loan.
People who have the finances to pay for the bike in a single payment also go for two-wheeler loans. They see that by paying the loan in monthly installments they can utilize the funds they have in various investments that make them money.
Also, they continue to use the bike while paying for it, where once the payment is done the owner can sell the bike and go for a newer and better model as motorcycle’s cost is comparatively lesser than cars.
A two-wheeler loan is also a method through which most people attempt to get their credit history, a two-wheeler loan when repaid consistently will have an impact on your credit score positively and would help you get better loans and credit cards in the future at favorable rates.
Important documents to be submitted while applying for loans
Banks: Which includes all types of private banks, commercial banks, state-owned banks, scheduled banks or non-scheduled banks, offer two-wheeler loans as part of their products and services. It does not matter if you are an existing customer or not you can still avail a two-wheeler loan.
NBFCs: Non-Banking Financial Companies (NBFCs) are organizations that have got the license from RBI to operate as a financial institution. They provide services only in the matter of loans, mutual funds or wealth management categories not taking part in banking functions like Savings account or transactions. In the case of two-wheeler loans many manufacturers like Hero Corp and Bajaj offer loans.
You can apply for 2-wheeler loans in two ways
Online: You can apply for two-wheeler loans online which almost all the banks and NBFCs offer. They also offer EMI calculators which you can use to calculate your EMI amount for each month. Once you choose your motor bike you will know how much loan amount you need and based on that you can vary your tenure and interest rate to know which will suite you.
Offline: You can directly approach any branch of any bank or NBFC and meet their representative to apply for a loan. Here you could negotiate your loan rate and tenure. You can also avail a loan at the dealers as most dealers have tie ups with banks or NBFCs where at the time of purchase you can avail a loan.
Apart from the eligibility criteria there are certain factors that affect your loan application mainly the minimum salary expectation and your loan amount eligibility.
Location: the place where you stay play an important part in your loan application. This determines the minimum salary amount for you to be eligible for a two-wheeler loan. The minimum salary is higher in the cities and more so in the case of metropolitan cities like Mumbai.
Income: The loan is given to people with an annual income of Rs. 50,000. Thus, income is not a major factor when you apply for a motor-cycle loan.
Two wheeler loans in two ways
- Housing situation:- Banks would prefer borrowers to stay in a single location as they prefer borrowers to have a stable address to make sure they avoid defaulters who continuously change address.
- Company of employment:- Working for a reputed company close to a year could indicate to the lender you are in a stable job, the better the rating of the company the better the interest rate can be negotiated.
- Existing credit:- If you already have another loan or credit card debt will be a factor in determining your loan amount and interest rate.
- Credit history:- This loan is a good way to improve your score if you are new to credit. Credit score is not a major factor but if considered a score of 750 is preferable.
- There are multiple factors that banks consider before approving any two-wheeler loan. Let us look at the Two-wheeler Loan offered by State Bank of India (SBI)
- Purpose State Bank of India(SBI) provides funds for purchasing of fresh 2 wheelers i.e. Scooters, Motor Cycles, Mopeds, Battery-Operated Scooters etc. of any make and model.
Employees of Government/Semi-Government Undertakings, Autonomous bodies, Public Sector Undertakings, Private Companies or Reputed Establishments, Professionals or self-employed individuals / Businessmen / Pensioners drawing their pensions from our Bank.
Minimum age of applicant:- Students, aged 18 years & above, with a parent (Mother or father) as co-borrower.
Maximum age of applicant at loan maturity: Age of retirement for salaried individuals & 65 years for others
Salary requirement: Minimum Net Annual Income Rs. 75,000 (for regular petrol/diesel/gas operated scooters & motor cycles) and Rs. 60,000 (mopeds and battery-operated Two-wheelers)
Maximum Loan Amount
For salaried persons, the maximum loan amount is restricted to 6 times Net Monthly Income (NMI), i.e. net of all deductions including actual monthly tax deductions at source.
In case of others, the maximum loan amount is restricted to half of Net Annual Income (NAI), i.e. income as per latest income tax return filed less taxes payable.
State Bank Of India
For agriculturists, the net annual income should be arrived based on the nature of their activity (i.e. farming, dairy poultry, orchards, etc.) land holding, cropping pattern, yield, etc., and average level of income derived there from in the area.
|Bank Name||State Bank Of India|
|Tenure||Tenure: Loan can be repaid within a maximum period of 36 months|
|Margin||15% of the on the road price (which includes vehicle registration charges, insurance, one-time road tax)|
|Security||Hypothecation of Two-Wheeler to be purchased|
|Processing Fees||1.50% of loan amount + GST|
|Minimum||Min: Rs.250.00 + GST|
|Maximum||Max: Rs.500.00 + GST|
State Bank of India (SBI) Two-Wheeler Loan Interest rate: 9.25% above 1-year MCLR i.e. 17.20% p.a.
How to Apply for State Bank of India (SBI) Two-Wheeler Loan?
You can either apply online or visit a nearby State Bank of India (SBI) branch for the application. You can also download the 2-wheeler loan application form from the State Bank of India (SBI) official website, complete the form and submit it to the bank representative.
Paying Your State Bank of India (SBI) Two-Wheeler Loan
The State Bank of India (SBI) 2-wheeler loan EMI can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Allahabad Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Allahabad Bank account you specify.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Allahabad Bank account at your nearest Allahabad Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Allahabad Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
SBI Two-Wheeler Loan EMI Calculator
It is helpful to get a clear picture of what your Equated Monthly Instalment will be before you take out a loan. This will help you plan your finances and budget better, ensuring that your EMI is an amount that you can pay back in a regular and stress-free manner.
You can get a detailed amortisation table through an online two wheeler loan EMI calculator. All you have to do is enter the relevant data in the required fields or adjust the sliders to reflect the correct data, which would include your desired loan amount, the given interest rate, as well as your desired loan repayment tenure.
Documents Required for SBI Two-Wheeler Loan
|General|| Loan application form filled up accurately|
Bank account statements for the last 6 months
Identification of signature from records of the bank
Valid identity proof such as voters ID/passport/PAN card
Proof of residential address such as utility bills, passport, tax receipts, etc.
2 passport size photographs
|For self-employed/professionals|| Income Tax Return copies for the two preceding financial years acknowledged by ITO|
Proof of official address for non-salaried individuals
|For salaried||Latest salary-slip showing TDS certificate, Form 16, and all deductions|
|SBI Two wheeler Loan Eligibility||Eligibility of 2 wheeler loan in SBI relies upon different factors but the most important factor is your ability to repay the loan. Two wheeler loan calculator calculates eligibility of an applicant depending upon various factors like|
|Age||Age plays an important role to know your eligibility and repayment capacity. SBI offers two wheeler loan to individuals who are atleast 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.|
|Income||SBI bike loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for two wheeler loan. SBI asks for net monthly income of ₹ 10,000 from salaried professionals.|
|CIBIL Score||Your past CIBIL history and repayment record of existing loans and credit cards has direct impact on your two wheeler loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your two wheeler loan eligibility.|
Advantages of SBI Two Wheeler Loan
Two Wheeler Loan is a daily necessity and has become a crucial part of our life. Many people have to visit different places, and they require a bike for that, as time is essential for all of us. Most of the college-going students need a motorcycle, as sometimes buses may not available at the timings of college.
Compare Bike Loan Interest Rates of SBI Bank with other banks
|Bank Name||Two Wheeler Loan Interest Rates||Lowest EMI Per ₹ 10 Thousand For Max Tenure|
|Axis Bank||10.85%||₹ 217 for 5 years|
|SBI||16.05%||₹ 352 for 3 years|
|HDFC Bank||9.10%||₹ 249 for 4 years|
|PNB||9.55%||₹ 210 for 5 years|
|Bajaj Auto Finance||13.26%||₹ 338 for 3 years|
|Allahabad Bank||10.40%||₹ 214 for 5 years|
|Andhra Bank||9.90%||₹ 212 for 5 years|
|Bank of India||7.45%||₹ 200 for 5 years|
|Union Bank of India||9.90%||₹ 322 for 3 years|
|United Bank of India||9.55%||₹ 210 for 5 years|
|Corporation Bank||9.90%||₹ 322 for 3 years|
|Indian Bank||10.40%||₹ 214 for 5 years|
|Karnataka Bank||8.48%||₹ 205 for 5 years|
|Canara Bank||9.00%||₹ 318 for 3 years|
Factors Affecting Two-wheeler Loan Application
|Credit Score||On a scale of 900, credit rating agencies award you a grade, with anything over 750 considered satisfactory. Your credit score assists the lender in determining your creditworthiness and whether you are a responsible borrower. Make sure you have a decent credit score before applying for a low-interest bike loan. This will demonstrate to the lender that you are able to repay the loan.|
|Loan Tenure||A lender can charge you a high rate of interest to justify the risk and cover their losses in the event of a default. As a consequence, if you want a lower interest rate, go for the shorter-term loan. When you get your two-wheeler home, you can use a bike loan EMI calculator to find out how much you’ll have to pay per month.|
|Loan Amount||Most financial institutions will lend you up to 85% of the vehicle’s current on-road price. Simply put, the larger the loan, the more costly your bike would be. As a result, the interest rate will increase as well. You can easily calculate your monthly payments with a bike loan.|
|Dealership||Dealership – Depending on whether you pay a higher or lower interest rate, the loan amount you apply for can vary depending on the dealership location. As a result, if you want a bike loan with a lower interest rate, do your research and choose a dealership with a slightly lower bike price.|
|Secured vs. Unsecured Loans||You will have the choice of choosing between the two types of loans or just one, depending on the lender. Furthermore, interest rates vary depending on the type of loan you select. Unsecured loans have a higher interest rate than secured loans on average because the former is riskier.|
SBI 2 Wheeler Loan EMI Calculator
EMI Calculation for SBI Two Wheeler Loan as per Loan Tenure Period Check how much EMI you have to pay for Bike/Scooter loan per month – below calculated EMI’s for 50000 loan for 9, 12,18,24,30 & 36 months respectively.
Now you have to just multiply your loan amount with EMI per Month.