Tax on two-wheeler loans
Unless they fall into the electric-vehicle class, two-wheelers bought for home use will not be a topic to a tax deduction. A two-wheeler registered within the title of the proprietor or purchaser and used for enterprise functions is tax-deductible. If the client is a enterprise proprietor, self-employed particular person, or skilled, tax incentives can be found on two-wheelers underneath Section 80C of the Income Tax Act 1961 as much as Rs 1.5 lakh provided that the bought bike or two-wheeler has been bought for enterprise functions or if the automobile is an electrical automobile.
The ITR type should be stuffed fully and curiosity certificates issued by the financial institution should be hooked up with it to assert a tax exemption in your two-wheeler mortgage. However, debtors ought to and will take into account that they will solely get pleasure from tax deductions on their yearly curiosity funds, transportation value, and depreciation value.
Documents and eligibility standards
One wants to fulfill the next eligibility standards and maintain the paperwork prepared earlier than making use of a two-wheeler mortgage.
- The borrower ought to be between the age group of 21 to 58 years if salaried and 21 to 65 years if self-employed.
- The borrower ought to be salaried or self-employed.
- The borrower ought to have a minimal revenue of Rs 10,000 per 30 days.
The borrower should maintain his or her identification proof, handle proof, revenue proof, age proof, and checking account assertion of the final 3 months.
Two Wheeler Loan Interest Rates 2021
Here are our top 10 self-selected banks that are currently promising the lowest interest rates on two-wheeler loans.
|Sr No.||Banks||Interest Rates In %||Loan amount|
|1||Central Bank of India||7.25% to 7.70%||Rs 10 lac (max)|
|2||Bank of India||7.35% to 8.55%||Rs 50 lac (max)|
|3||Punjab National Bank||8.70% to 10.05%||Rs 10 lac (max)|
|4||Jammu & Kashmir Bank||8.70% onwards||Rs 2.5 lac (max)|
|5||Punjab & Sind Bank||9.00% onwards||Rs 10 lac (max)|
|6||Canara Bank||9.00% onwards||Rs 10 lac (max)|
|7||ICICI Bank||9.50% to 26.00%||Rs 3 lac (max)|
|8||IDBI Bank||9.80% to 9.90%||Rs. 1.20 lacs onwards|
|9||Union Bank||9.90% to 10.00%||Rs 10 lac (max)|
|10||IDFC First Bank||9.99& onwards||Rs 3 lac and above|
|Source: Bank Websites|