Top 10 Banks Offering The Cheapest Interest Rates On Two Wheeler Loans

Tax on two wheeler loans

Unless they fall into the electric-vehicle class, two-wheelers purchased for domestic use are not subject to a tax deduction. A two-wheeler registered in the name of the owner or purchaser and used for business purposes are tax-deductible. If the customer is a business owner, self-employed individual, 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 bike or two wheeler has been purchased for business purposes or if the vehicle is an electric vehicle.

The ITR form must be filled completely and interest certificates issued by the bank must be attached with it to claim a tax exemption on your two-wheeler loan. However, borrowers should and should keep in mind that they can only enjoy tax deductions on their yearly interest payments, transportation cost, and depreciation cost.

Documents and eligibility criteria

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

Eligibility

• The borrower should be between the age group of 21 to 58 years if salaried and 21 to 65 years if self-employed.
• The borrower should be salaried or self-employed.
• The borrower should have a minimum income of Rs 10,000 per month.

Documents

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

Two Wheeler Loan Interest Rates 2021

Here are our own hand-picked top 10 banks that are currently promising the lowest interest rates on two wheeler loans.