Two Wheeler Loan EMI Calculator

Calculate your bike, scooter, or electric two-wheeler loan monthly EMI and repayment schedule.

Loan Amount

$20K$1M

Annual Interest Rate

7%22%

Loan Tenure

1 Mo60 Mo

Monthly EMI

$3,274

Total Interest Payable

$17,859

Total Amount Payable

$117,859

Principal (85%)Interest (15%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$39,288	$29,759	$9,529	$70,241
Year 2	$39,288	$33,202	$6,086	$37,039
Year 3	$39,282	$37,039	$2,243	$0

About Two Wheeler Loans

Two-wheeler loans finance motorcycles, scooters, mopeds, and electric two-wheelers. Interest rates range from 8% to 16% p.a. depending on the lender, vehicle type, and your credit profile. Most lenders finance up to 90–95% of the on-road price. Tenures range from 12 to 60 months. The vehicle serves as collateral and requires mandatory comprehensive insurance. NBFCs like Hero FinCorp, TVS Credit, Bajaj Finance, and Shriram Finance are the major players, often with dealer tie-ups for instant approvals.

EMI Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P = Principal, r = Monthly Interest Rate, n = Number of Months

Should I finance ex-showroom or on-road price?

Banks finance the on-road price (ex-showroom + RTO registration + insurance + accessories). On-road can be 15–30% higher than ex-showroom. Always calculate your EMI on the total on-road amount to budget accurately. Some dealers charge for accessories not needed — negotiate to reduce the financed amount.

EV two-wheeler loans — any special benefits?

Electric two-wheeler loans often attract lower rates (7–10%) due to government incentives. Under FAME-II and state subsidies, some EVs get direct purchase subsidies, further reducing the loan amount. SIDBI's climate bond financing enables banks to offer preferential rates on EV loans. Calculate EMI after deducting applicable subsidies.

Shorter vs longer tenure for two-wheelers?

For two-wheelers, shorter tenures (24–36 months) are strongly recommended. Vehicles depreciate rapidly — after 3 years, a bike may be worth 40–50% of its purchase price. A longer tenure risks 'negative equity' (loan balance exceeds vehicle value). The EMI difference between 36 and 60 months is usually small — choose shorter if affordable.

Frequently Asked Questions

What is the minimum down payment for a two-wheeler loan?

Most lenders require 10–15% down payment (LTV up to 85–90%). Some NBFCs and dealer financing offer zero down payment schemes for salaried individuals with 750+ CIBIL scores. Zero-down schemes usually carry higher interest rates.

Can students get a two-wheeler loan?

Yes, but most banks require a parent/guardian as co-borrower since students typically have no income. Some institutional tie-ups with colleges offer special student EMI schemes. The co-borrower's income and CIBIL score determine the rate.

What is the interest rate for a bike loan in 2026?

Bike loan rates in 2026 range from 8% to 16% p.a. for new two-wheelers. HDFC Bank offers 10.9–12%, State Bank of India from 11.1%, Bajaj Finance from 9.99%. EV two-wheelers from select lenders can be as low as 7.5%.

Are prepayment charges applicable on two-wheeler loans?

Most lenders charge 2–5% prepayment penalty. NBFCs like Bajaj Finance typically have no charges after 6 months. Always check the foreclosure clause — prepaying in year 1–2 can save 30–40% of the total interest.

What insurance is mandatory for a two-wheeler loan?

Comprehensive insurance is mandatory for the entire loan tenure. Third-party insurance alone is not sufficient for lenders. The insurance should name the financier as the registered owner/hypothecator. You can shop for insurance independently — it's often cheaper than dealer-arranged insurance.