Top 10 Banks Offering the Cheapest Interest Rates on Two Wheeled Loans

Two-wheeler loan tax

Unless they fall under the category of electric vehicles, two-wheelers purchased for domestic use are not subject to a tax deduction. A two-wheeler registered in the name of the owner or the purchaser and used for business purposes is tax deductible. If the client is a business owner, self-employed 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 bicycle or two-wheeler was purchased for commercial purposes or if the vehicle is an electric vehicle.

The ITR form must be fully completed and the interest certificates issued by the bank must be attached to claim tax exemption on your two-wheeler loan. However, borrowers should and should keep in mind that they can only qualify for tax deductions on their annual interest payments, transportation costs, and amortization costs.

Documents and eligibility criteria

Documents and eligibility criteria

One must meet the following eligibility criteria and keep the documents ready before applying for a two-wheeler loan.

Eligibility

  • The borrower must be 21 to 58 years old if he is employed and 21 to 65 years old if he is self-employed.
  • The borrower must be an employee or self-employed.
  • The borrower should have a minimum income of Rs 10,000 per month.

Documents

The borrower must keep his proof of identity, proof of address, proof of income, proof of age and bank account statement for the last 3 months.

Two-wheeler loan interest rates 2021

Two-wheeler loan interest rates 2021

Here are our top 10 handpicked banks that currently promise the lowest interest rates on two-wheeled loans.

No Sr. Banks Interest rate in% Amount of the loan
1 Central Bank of India 7.25% to 7.70% Rs 10 lake (max)
2 Bank of India 7.35% to 8.55% Rs 50 lake (max)
3 National Bank of Punjab 8.70% to 10.05% Rs 10 lake (max)
4 Bank Jammu and Kashmir from 8.70% Rs 2.5 lac (max)
5 Bank of Punjab and Sindh 9.00% from Rs 10 lake (max)
6 Canara Bank 9.00% from Rs 10 lake (max)
7 ICICI Bank 9.50% to 26.00% Rs 3 lake (max)
8 IDBI Bank 9.80% to 9.90% Rs. 1.20 lakes and more
9 Union Bank 9.90% to 10.00% Rs 10 lake (max)
ten IDFC Premier Bank 9.99 and above Rs 3 lake and more
Source: Bank websites

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