Two-wheelers are the most popular vehicular category in India. Apart from that, two-wheelers are a blessing in disguise when it comes to the unforgiving traffic on Indian roads. With the current loan options available in the market everyone can afford to buy two-wheelers and get going. With the advent of lucrative two-wheeler loan interest rates, it is now also possible for the Indian sub-continent to indulge in luxury rides as well.

Banks, Non-Banking Financial Companies (NBFCs) and Online Lenders have made two-wheelers a household go-to transportation option. In order to understand how to get a two-wheeler loan with low interests, it is important to understand how two-wheeler loan interest rates are calculated.

How Two-Wheeler Loan Interest Rates Calculated?

Two-wheeler interest rates depend on the type of entity you’re borrowing from. Banks, NBFCs and various online lenders levy loan interest rates anywhere from 8% to 18%. The rate of interest levied on your two-wheeler loan depends on various factors like:

  1. Your credit score
  2. Age
  3. Existing financial obligations
  4. Income statement
  5. Tenure of your loan
  6. Type of two-wheeler you’re purchasing
  7. Lending entity (Bank, NBFC or Online Lender)



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How Can You Get the Lowest Two Wheeler Loan Interest Rates?

There are two things that most Indians look for while making a purchase for a two-wheeler namely mileage and two-wheeler loan interest rates. The higher the mileage, the better are the chances of us selecting the vehicle. Contrastingly, the lower the interest rate, the better are the chances of us selecting the loan offer.

However, in order to get the most out of your two-wheeler loan, it is important to pay attention to your EMI (Equated Monthly Instalment) in addition to the interest rate you’re being offered. EMIs are the monthly instalments you’ll be paying.

Since interest rates are compounded each month, a higher interest rate loan for a short term might be more beneficial to you than a lower interest rate loan for a very long period. The key is to find the right EMI amount for a suitable tenure at the rate that you’re offered.

Your EMIs are calculated based on the principal amount of your loan and the tenure that your two-wheeler loan will mature in. When you’re calculating manually, you can calculate your EMI by with the following formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

However, you can easily calculate and compare EMIs against tenures and the overall interest that you will be paying for different tenures by using online two-wheeler loan calculators available in India.

Instant Two-Wheeler Loans with PaySense

PaySense offers a unique platform where you can instantly avail a two-wheeler loan amount of up to Rs. 2,00,000! No more waiting to get your loan approved. Simply log in to our portal, complete an application form, sign it and get the money deposited directly into your account. No hidden charges and one time documentation with quick loan disbursements! Go take that long road trip you’ve always wanted to with the help of PaySense’s instant two-wheeler loans!