All You Need to Know About HDFC Two-Wheeler Loan Interest Rates
Article by Drivio | 9th Oct 23
HDFC two-wheeler loan interest rates depend on several factors like your credit score, bike model, price of the motorcycle, and other factors. Besides, the bank offers cost-effective loans at different rates of interest for regular bikes and superbikes.
Owning a two-wheeler might be your dream, but often, this investment requires financial assistance from banks. In the private sector, HDFC Bank happens to be one of the most trusted lenders. This financial institution offers up to 100% financing for two-wheelers to eligible borrowers, easing up the process of acquiring the motorcycle.
Besides, the bank offers attractive interest rates and flexible loan tenures. In this guide, we will explore HDFC two-wheeler loan interest rates in detail, along with your eligibility criteria.
On understanding HDFC Loan interest rates, you can confidently proceed to purchase your new motorcycle through a loan. Read on to get valuable rate insights that will guide you in getting the right kind of financial assistance from the lender.
Understanding HDFC Loan Interest Rates
HDFC Bank offers competitive interest rates for two-wheeler loans. While the HDFC two-wheeler loan interest rates start from 14.5% per annum for regular loans, they finance superbikes at lower interest rates. So, if you decide to get your new superbike financed through HDFC bank, you may qualify for interest rates as low as 11.99%.
However, borrowers should note that several factors determine the actual interest rate they need to pay. Your creditworthiness and credit score, along with your financial history come into play while determining the interest rate. If you have a healthy credit profile, you can qualify for low interest rates.
What Are The Related Charges For HDFC Bank Bike Loans?
Apart from the interest, most banks charge some additional fees while processing loans. Besides understanding HDFC Loan interest rates, it’s crucial to factor in these additional expenses.
1. Bike loan processing charges
When you apply for a two-wheeler loan with HDFC Bank, you need to shell out a processing charge. This can be up to 2.5% of the overall loan amount. So, when you budget for your new bike or calculate your EMI, make sure to factor in this cost.
For instance, taking a bike loan of INR 2 lakhs from HDFC bank requires you to shell out INR 5,000 as the processing fee, calculated at 2.5% of the loan amount.
HDFC bank also has a special provision where Micro and Small Enterprises can enjoy bike loans up to INR 5 lakhs at zero processing fees. If you come under this category, make sure to submit the Unique Reference Code (URC) before the loan gets disbursed.
2. Stamp duty and other statutory charges
The stamp duty and other statutory charges on bike loans vary from one state to another. These are mandatory charges, so you need to factor them into your budget when you apply for a motorcycle loan with HDFC Bank.
3. Documentation charges
Documenting your loan agreement and other paperwork is an essential part of the loan process. HDFC Bank may charge up to 2% of the loan amount as documentation charges. Before you apply for the loan, inquire about these charges to get a transparent idea.
4. PDD collection charges
HDFC Bank levies Post-Dated Cheque (PDD) collection charges where applicable, and you may have to pay a maximum amount of INR 500 as PDD. Although you need not pay this during loan processing or disbursement, the bank collects it when you repay your instalments.
5. RTO charges
In India, it is legally required to register your motorcycle with the Regional Transport Office (RTO)when you purchase it. Depending on the branch, HDFC Bank may charge RTO charges at actual cost. This charge varies based on the state where you register your bike, and the vehicle.
What Is The Maximum Loan Amount Sanctioned For Bike Loans?
Apart from gaining relevant rate insights on HDFC bank bike interest, you would like to know whether the bank approves 100% financing.
Thankfully, HDFC Bank approves motorcycle loans up to 100% of the on-road price of the vehicle. However, this is applicable to select models and specific account holders with a decent credit score. It is advisable to check the specific terms and eligibility criteria based on your financial stature to know the maximum loan eligibility.
Getting 100% loan financing for your new motorcycle will significantly ease up your experience, as you need not worry about making the down payment.
Factors Influencing HDFC Two-Wheeler Loan Interest Rates
The HDFC two-wheeler loan interest rates depend on different factors, including:
1. Credit score
Your credit score reflects your money-handling habits. While understanding HDFC Loan interest rates, it’s imperative to know how your credit score can influence this rate. If you are financially responsible and have a credit score over 750, you are likely to qualify for lower interest rates. On the other hand, if your credit score looks average or poor, be prepared to pay higher rates of interest on your bike loan.
2. Loan amount
The loan amount you apply for also determines your interest rates. Larger loans come with slightly lower rates of interest. Smaller loans, on the other hand, are available at marginally higher rates. This explains why the interest rate charged for financing superbikes (starting from 11.99%) is lower than that of regular bikes (starting from 14.50%).
3. Loan tenure
How long are you applying the loan for? With shorter loan tenures like two to three years, banks charge lower rates of interest. When you extend your loan tenure, the bank needs to bear additional risk, in case you default. This justifies why they charge higher rates of interest for longer loan tenures.
HDFC Bank offers attractive two-wheeler loans to help you own your dream motorcycle faster. With these rate insights, you are now better poised to finance your motorcycle through the bank.
Understanding HDFC Loan interest rates is crucial, as an informed buyer can make smart decisions to save on the interest. Now that you know the basic HDFC two-wheeler loan interest rates, evaluate your financial condition, compare offers, and choose the right model to ensure your affordability. With the right approach, you can get a bike loan from HDFC Bank at competitive interest rates.