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Bike Loan Interest Rates

Introducing ICICI Bank's comprehensive breakdown of Bike Loan interest rates. Learn the details of interest rates tailored to suit your Two-Wheeler financing needs. From competitive rates for floating and fixed loans to flexible repayment options, explore how ICICI Bank makes your dream bike a reality with affordable financing solutions.

 

For the quarter that ended on March 2025MinimumMaximumMean
Bike Loan Interest Rate per annum12.00%15.00%20.00%

 

Note:

 

  • The range of interest rates provided above is with respect to loans to individuals disbursed during Quarter 4 - FY: 2025-26.

 

  • It includes fixed rate of interest and is based on factors such as customer relationship, asset segment, tenure of loan etc.

 

  • It excludes subsidy and government schemes.

 

  • Mean rate = Sum of rate of interest of all loan accounts / Number of all loan accounts.

 

ICICI Bank's Bike Loan interest rates in India generally range from 10.25%* to 26.10%* per annum. These rates are subject to change based on factors like loan amount, tenure and the borrower's creditworthiness. It's essential to examine the terms and conditions to understand the specific charges associated with your loan.

 

SR. No

Charges

Amount

A.

On application

i.

Loan processing fee

Upto 4% of loan amount

ii.

Charge for loan documentation

₹500 + applicable Goods and Services Tax (GST)

iii.

Registration Certificate (RC) Collection Fee

₹600 + applicable GST

iv.

Stamp duty charges

At Actuals as per State Stamp Duty Act + applicable GST

v.

Information Utility Charges (Only for Corporate Cases)

₹300 + applicable GST

B.

During the term of Loan (details about contingent charges) Penal Charges

i.

Part Payment Charges

Nil for loan seasoning above 24 months

3% (of part payment amount) for loans seasoning up to 24 months

ii.

Penal charges for late payment

5% per annum + applicable GST will be charged on the overdue EMI until repayment which may be payable pursuant to the applicable laws and terms and conditions

iii.

Penal Charge for dishonour of Cheque or AD or ECS or NACH per transaction

₹500 + applicable Goods and Services Tax (GST) per instance of bounce/return/dishonour of cheques and/or any payment instruction including AD/ECS/NEFT/E-mandate

iv.

Loan Cancellation Charges

1. Digital Lending - NIL Cancellation within Free Look or Cooling off period, Cancellation post cooling-off period and Before 1 Equated Monthly Instalment (EMI) date (i.e. from 16th day till 1st EMI date) – ₹2,500 + applicable GST
2. Non Digital - ₹2,500 + applicable GST

C.

Service charges

i.

Duplicate Repayment or Amortization schedule charges

₹200 + applicable GST for physical print out, Nil for digital channels

ii.

Statement of Account charges

₹200 + applicable GST for physical print out at the branch

iii.

Prepayment statement charges

₹200 + applicable GST for physical print out at the branch

iv.

Duplicate No Objection Certificate or No Due Certificate charges

₹250 + applicable GST

v.

Revalidation of No Objection Certificate charges

₹250 + applicable GST

vi.

No Objection Certificate to convert from private to commercial or from commercial to private charges

₹250 + applicable GST

vii.

Repayment mode swap charges

₹500 + applicable Goods and Services Tax (GST)

viii.

Cash Transaction Charges (for repayment of EMI dues in cash at branches)

₹100 + applicable GST

ix.

Prepayment charges (Foreclosure)

4% on Point of Sale (POS)

Nil for eligible Micro and Small segment customers

D.

Loan related recovery charges (if applicable)

i.

Charges incurred in SARFAESI proceedings

At actuals

ii.

Charges incurred in sending different notices

At actuals

iii.

Enforcement charges

At actuals

iv.

Non Maintenance of Mode of Payment charges (NMMP)

₹800+ GST

v.

Paper advertisement charges

At actuals

vi.

Repossession charges

At actuals

vii.

Security guard charges

At actuals

 

Note:

 

  • All above charges are exclusive of Goods and Services Tax (GST). Applicable GST, taxes and/or other statutory levies shall be levied over and above charges by the Bank.


  • Nil Prepayment charges on all fixed rate loans if loan is booked under priority sector lending and Borrower(s) type is Small or Micro and Loan amount is less than or equal to ₹50 lakh. Further, Nil prepayment charges on all floating rate loans if Borrower(s) type is Small or Micro in accordance with MSE Code of Commitment.


  • Stamp Duty will be applicable as per actual. (As per State Stamp Duty Act applicable for the state)


  • The charges or fees given in the above table are subject to change and the one recorded in the loan application / agreement will be final and binding.


For more information, please visit the nearest ICICI Bank branch or call our Customer Care.

 

The RBI through its Circular No. RBI/2023-24/53 dated 18 August 2023 on ‘Fair Lending Practice - Penal Charges in Loan Accounts’, has advised banks that penalty if charged, for non-compliance with the material Terms and Conditions of the loan contract will be treated as penal charges and not be levied in the form of penal interest that is added to the rate of interest charged on the loans or advances. The RBI has further advised that there will be no capitalisation of penal charges i.e. no further interest will be computed on such penal charges. However, the above mentioned shall not affect the normal procedure for compounding of interest in the loan account.

 

The above guidelines are effective from 01 April 2024 and applicable for all fresh loan facilities executed from 01 April 2024. In case of an existing loan facility, the switchover to the new penal charges regime shall take place by the next review or renewal date or before 30 June 2024, whichever is earlier. The revised charges are as below:

 

Existing penal interest

Applicable penal charges

24% per annum

5% per annum


*Goods and Services Tax and other government taxes, levies, etc. applicable as per the prevailing rate will be charged over and above the mentioned penal charges.

 

The Annual Percentage Rate (APR) is a method to compute the annualised credit cost, which includes the interest rate and the loan origination fee.


To calculate the same, please click here to download the APR calculator.

 

Here are the documents required for applying for a Two-Wheeler Loan from ICICI Bank:

  • Proof of identity: Aadhaar Card, Passport or Voter ID

  • Proof of address: Aadhaar Card, utility bills, Rental Agreement or Passport

  • Income proof: Salary slips, Bank Statements or Income Tax returns

  • Employment proof: Employment Certificate, Appointment Letter or Business ownership documents.

  • Two-Wheeler details: Invoice, Registration Certificate and Insurance papers

  • Passport-size photographs: Recent passport-sized photographs of the applicant

  • Any other specific documents as requested by the bank at the time.

 

About Two-wheeler Loan Interest Rate

What are the Types of Bike Loan Interest Rate?

ICICI Bank offers Bike loans at fixed interest rates. A fixed interest rate remains constant throughout the loan tenure, providing predictability in repayments.

What factors affect the Two Wheeler Loan interest rates?

Several factors can influence Two Wheeler Loan interest rates including the borrower's credit score, income stability, employment history and relationship with the lender. The loan amount and tenure also play a role. Additionally, prevailing market conditions and the Reserve Bank of India's (RBI’s) policies can impact these rates.

Two Wheeler Loan Interest Rates FAQs

How does credit score impact the Two-Wheeler Loan interest rates?

A a high credit score can significantly impact the Two-Wheeler loan interest rates, often leading to more favourable terms. It indicates your creditworthiness and reduces the lender's risk. On the other hand, a low credit score may result in higher interest rates, indicating increased risk for the lender.

How is the interest on a two-wheeler loan calculated?

The interest on a Two-Wheeler Loan is calculated based on the principal amount, interest rate and loan tenure. The interest is calculated using the reducing balance method that charges interest only on the outstanding loan amount. You can use the Two-Wheeler Loan interest rate calculator to estimate your monthly EMI and total interest payable.

How does the loan tenure impact the interest rate on a Two-Wheeler Loan? 

Loan tenure influences EMI amount and total interest payable. A longer tenure generally reduces monthly EMI but may increase overall interest outgo. A shorter tenure may result in higher EMIs but lower total interest cost. The applicable interest rate is determined based on internal assessment, credit profile and prevailing policies.

What are the penalties for late payments on a Two-Wheeler Loan?

Late payment of EMIs may attract penal charges as per the loan agreement. Continued delays may impact credit score and borrowing eligibility. Customers are advised to maintain sufficient balance and adhere to repayment schedules to avoid additional charges.

What is the difference between fixed and floating bike loan interest rates?

A fixed interest rate remains constant throughout the loan tenure, resulting in stable EMIs. A floating interest rate may change based on benchmark movements, which can increase or decrease the EMI amount during the loan tenure.

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