Rates & lenders
Two-Wheeler Loan Processing Fees & Charges
Processing, documentation, foreclosure and other charges at 8 banks — and how they raise the APR.
Updated 27 September 2026 · 8 lenders trackedLowest two-wheeler loan rate
8.90%
Indian Bank Two-Wheeler LoanWhat you need to know
Processing fees on bike loans range from 0.50% (PNB, capped at ₹1,000) to 3% (SBI) of the loan, plus 18% GST. On a small, short loan these fees noticeably raise the effective cost, so compare the APR in the Key Facts Statement, which must include every fee.
Lender-wise fees
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Indian Bank Two-Wheeler Loan | About 1% of loan + GST (aggregator) | Nil for individuals |
| Bandhan Bank Two-Wheeler Loan | Up to 5% of loan + GST (aggregator — check with bank) | Not published — check the KFS |
| PNB Two-Wheeler Loan (PNB Saarthi) | 0.50% of loan (min ₹500, max ₹1,000) + GST | Nil |
| Axis Bank Two-Wheeler Loan | Up to 2.5% of loan + GST | Foreclosure charge 5% of outstanding; part-prepayment not allowed |
| SBI Two-Wheeler Loan | 3% of loan + GST (50% waiver for salary-package customers) | Floating (MCLR-linked) loan to an individual — no prepayment charge under RBI rules; confirm in the KFS |
| Federal Bank Two-Wheeler Loan | Not published — ask for the KFS | Fixed-rate loan — charge as per sanction letter/KFS |
| Bank of Baroda Two-Wheeler Loan | 2% of loan (min ₹250) + GST | Floating: nil. Fixed: nil after 2 years; within 2 years nil up to ₹10,000, 2% + GST on amount beyond |
| HDFC Bank Two-Wheeler Loan | Up to 2.5% of loan + GST; documentation charges extra (aggregators cite up to 2.25%) | Foreclosure charge up to 5% of outstanding principal (fixed-rate loan) |
Typical charges
| Charge | Typical range |
|---|---|
| Processing fee | 0.50% (PNB, capped at ₹1,000) to 3% (SBI) of loan; aggregators report up to 5% at Bandhan — plus 18% GST |
| Documentation / file charges | Some private banks and NBFCs; aggregators cite up to 2.25% at HDFC Bank |
| Advance EMI | Some dealer schemes collect 1–2 EMIs upfront — effectively a down payment that raises the APR |
| Foreclosure (fixed rate) | Up to 5% of outstanding at some private banks; nil at PNB and Indian Bank |
| Foreclosure (floating rate) | Nil for individuals under RBI rules |
| Late payment / bounce charges | As per schedule — penal charges must be a fixed charge, not added to the interest rate (RBI 2024) |
| Credit life insurance | Optional; at Bank of Baroda the rate is 0.05% higher without it |
| NOC / duplicate NOC | Original NOC free at closure; a duplicate may cost a small fee |
Your rights
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Frequently asked questions
Is GST charged on the processing fee?
Yes, 18% GST applies to processing and other service charges.
Can the fee be waived?
Sometimes — SBI gives a 50% waiver to salary-package customers, and festive offers often cut fees. Ask before you apply.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.