Two-wheeler Loan: Interest Rates and Charges

Shriram Two-wheeler Loan helps you buy your dream bike with easy Equated Monthly Instalments (EMIs). Our interest rates start at just 10%* p.a., helping you save money on the total cost of the loan over your chosen tenure. At Shriram Finance, we believe in keeping our rates and charges transparent to help you make smart borrowing decisions.

Learn more about our two-wheeler interest rates from the table below and start your journey towards thoughtful bike ownership.

Type of Rates/Fees	Applicable Charges
Rate of Interest	10%* p.a. onwards
Processing Fees	Capped at 5%*
Foreclosure Charges	Up to 4%* (But please note that the customer cannot foreclose within 12 months from the date of the first EMI. An additional 2% will also be applied if the loan is transferred to another lender)

Disclaimer: The interest rates and charges associated with Shriram Two-wheeler Loan are subject to change. They may vary based on your loan tenure, market conditions and other relevant factors. Please refer to the Interest Rates and Charges document for the most accurate and up-to-date information.

Tips to Get a Two-wheeler Loan at Low Interest Rates

If you’ve been wondering about how to negotiate for a low interest rate on your two-wheeler loan, these tips can help:

- Maintain a Healthy Credit Score
  Aim for a credit score above 750. Regularly check your credit report to spot any errors and try to get those fixed.
- Choose a Shorter Loan Tenure:
  A shorter loan tenure may help you negotiate for a lower interest rate for your two-wheeler loan. You may have to pay a higher EMI, but you’ll end up less interest overall.
- Try to Maintain a Stable Income:
  A steady income can help you secure a bike loan on a lower interest rate. Having a stable income makes you a more attractive candidate, improving your loan approval chances.
- Try to Negotiate for a Lower Rate:
  See if you can negotiate for a lower interest rate, especially if you have a good credit history.
- Increase Your Down Payment:
  If you can, try to put down a larger margin money. This can help you secure a lower interest rate on your loan as there is lesser risk involved.

What Factors Affect the Two-wheeler Loan Interest Rate?

Some of the factors that affect your two-wheeler loan interest rate are:

Credit Score

A higher credit score may lead to a lower interest rate. This is because a good credit behaviour generally means less risk for any lender, including Shriram Finance.

Loan Amount

For larger loan amounts, the interest rate may be higher, as per Shriram Finance’s applicable policies.

Repayment Tenure

Shorter loan tenures usually attract lower interest rates. While longer tenures may have higher rates.

Down Payment

A larger down payment reduces the principal amount. This usually results in a lower interest rate.

Income and Employment Stability

A steady income or employment stability demonstrates higher repayment behaviour. This could lead to a lower interest rate.

Things to Consider Other than the Interest Rate

The interest rate is an important element that determines the total cost of the loan. But there are other factors that are equally as important:

- Processing Fees
  Our processing fee is capped at 5%*.
- Foreclosure Charges
  We levy a minimal fee of up to 4%* on the outstanding principal for early loan repayment.
- Repayment Flexibility
  Our repayment tenure ranges from 12 to 60 months. This gives you the flexibility to choose a loan duration that’s comfortable for you.
- Customer Service
  Our prompt customer service helps you with any queries about the loan you may have.
- Additional Charges
  Check for other charges like stamp duty, default interest, etc. to understand the true cost of the loan.
- Credit Score Requirements
  Aim to keep a healthy credit score to improve the chances and speed of loan approval.