When it comes to buying a dream two wheeler what we all do is either spend our hard-earned funds at once or think about a loan from banks that offer the cheapest rates depending on our eligibility and income criteria. Checking your eligibility criteria is the first and then there are other steps such as checking the lowest available interest rates, pre-approved offers and calculating EMI for applying for a two-wheeler loan. The only and important factor that plays an important role while applying for a two-wheeler loan is your CIBIL score which should and should be 750 or more. You can drive the two-wheeler of your preference or dream once you are eligible for a loan and your loan application is granted. By keeping all these factors in mind here we have compiled the top 10 banks which are currently offering the cheapest interest rates on two-wheeler loans.
Tax on two wheeler loans
Unless they fall into the electric-vehicle class, two-wheelers purchased for domestic use are not subject to a tax deduction. A two-wheeler registered in the name of the owner or purchaser and used for business purposes are tax-deductible. If the customer is a business owner, self-employed individual, or professional, tax incentives are available on two-wheelers under Section 80C of the Income Tax Act 1961 up to Rs 1.5 lakh only if the purchased bike or two wheeler has been purchased for business purposes or if the vehicle is an electric vehicle.
The ITR form must be filled completely and interest certificates issued by the bank must be attached with it to claim a tax exemption on your two-wheeler loan. However, borrowers should and should keep in mind that they can only enjoy tax deductions on their yearly interest payments, transportation cost, and depreciation cost.
Documents and eligibility criteria
One needs to meet the following eligibility criteria and keep the documents ready before applying for a two-wheeler loan.
- The borrower should be between the age group of 21 to 58 years if salaried and 21 to 65 years if self-employed.
- The borrower should be salaried or self-employed.
- The borrower should have a minimum income of Rs 10,000 per month.
The borrower must keep his or her identity proof, address proof, income proof, age proof, and bank account statement of the last 3 months.
Two Wheeler Loan Interest Rates 2021
Here are our own hand-picked top 10 banks that are currently promising the lowest interest rates on two wheeler loans.
|Sr No.||Banks||Interest Rates In %||Loan amount|
|1||Central Bank of India||7.25% to 7.70%||Rs 10 lac (max)|
|2||Bank of India||7.35% to 8.55%||Rs 50 lac (max)|
|3||Punjab National Bank||8.70% to 10.05%||Rs 10 lac (max)|
|4||Jammu & Kashmir Bank||8.70% onwards||Rs 2.5 lac (max)|
|5||Punjab & Sind Bank||9.00% onwards||Rs 10 lac (max)|
|6||Canara Bank||9.00% onwards||Rs 10 lac (max)|
|7||ICICI Bank||9.50% to 26.00%||Rs 3 lac (max)|
|8||IDBI Bank||9.80% to 9.90%||Rs. 1.20 lacs onwards|
|9||Union Bank||9.90% to 10.00%||Rs 10 lac (max)|
|10||IDFC First Bank||9.99& onwards||Rs 3 lac and above|
|Source: Bank Websites|