Two-wheeler loan EMI: what to expect
Whether you're buying a commuter scooter at ₹80,000 or a premium motorcycle at ₹5 lakh, understanding the full cost of the loan before you step into the showroom saves negotiation headaches.
Typical loan amounts and rates (2025)
| Segment | Price range | Typical loan | Rate range |
|---|---|---|---|
| Commuter scooter/bike | ₹60K–₹1.2L | ₹50K–₹1L | 12–18% |
| Mid-range (Honda, TVS, Bajaj) | ₹1–2.5L | ₹80K–₹2L | 10–16% |
| Premium (Royal Enfield, KTM) | ₹2.5–6L | ₹2–5L | 9–14% |
| Electric two-wheeler | ₹80K–₹2L | ₹70K–₹1.8L | 9–15% |
Should you opt for dealer financing or bank loan?
Dealers often have tie-ups with NBFCs and offer "zero processing fee" or "low EMI" schemes. These are usually marketing — the interest rate is embedded. Always compare:
- The effective APR (not the flat rate some dealers quote)
- Prepayment charges (typically nil after 6 months)
- Insurance bundling — dealers sometimes bundle mandatory insurance at inflated premiums
Banks and credit unions often offer 1–3% lower rates than dealer-arranged NBFC loans, especially if you have an existing salary account.