What are the typical interest rates for commercial bike loans?

Interest rates for commercial two-wheeler loans, such as bikes and scooters, for business usage vary between 8% and 30% per annum. However, the actual interest rate offered to you will depend on certain factors.

Key factors determining interest rates:

• Your credit score: Higher credit scores are often associated with lower interest rates on loans.
• Type of Business Entity: Sole proprietors may face higher rates than partnerships or private limited companies.
• Income Tax Returns: Higher-income businesses may be eligible for lower interest rates.
• Loan Amount and Tenure: Shorter loan tenures or lower loan amounts are typically associated with reduced interest rates.
• Type of Two-Wheeler: Basic or smaller two-wheeler models often have lower financing rates.

Besides interest rates, banks and Non-banking Financial Companies (NBFCs) charge processing fees plus applicable Goods and Services Tax (GST).

To get the most competitive interest rate for a commercial bike loan, opt for established financial institutions, put down a higher down payment, choose the ideal loan tenure, and maintain a high credit score and loan eligibility. Comparing interest rates across loan providers can further help you get the best deal.