Whether riding as a hobby or as a daily commuter, motorcycles have long been popular in Bangladesh. But a proper two-wheeler will set you back a considerable amount of money which is often out of reach for many. But should that stop you from getting one? Not at all. In fact, several banks offer loans for your two-wheeler. So which banks in Bangladesh are the best for motorcycle loans? And what should you consider before getting one? Let's find out.

Factors to consider before taking a motorbike loan

Interest rate

Interest rate is the main universal factor to compare between loans. Almost all the banks of Bangladesh have a unified interest scheme against their motorcycle loans. However, some banks charge more for some added perks.

Loan security

Loan security is another important factor. Loans of significant amounts require some form of security before they are disbursed. While it generally doesn’t apply to motorcycle loans as the amount is significantly less. However, there might be exceptions and so you have to be careful before signing up.

Read: Angel Investment 101: Is It the Right Track for Your Startup?

Loan inclusions

Most motorcycle loans don’t cover the entire cost of the bike. Usually, it’s a percentage of the price and associated costs. The percentage amount differs from bank to bank. As a loan seeker, you would want a loan that will cover the entire cost of the cycle or a close amount. However, that might come with higher interest rates.

Early termination

Check whether your loan offers an early termination policy. There might be situations where you would want to pay off extra or the remaining amount in a lump sum before the maturity period. While many banks allow an early termination policy, it may come with added costs. So, it's important to consider whether you’ll be paying off your loan before maturity.

Loan fees

Loan fees are charged as processing fees or loan maintenance fees. Most banks in Bangladesh don’t charge a loan maintenance fee. However, there are banks that charge loan processing fees. Typically, it’s a lump sum or a small percentage of the loan. But this is also something to keep in consideration before choosing a loan scheme.

Read Best Car Loans in Bangladesh to Grab Your Dream Car

Best Banks for motorcycle loans in Bangladesh

Eastern Bank Two-Wheeler Loan

Eastern bank is one of the premier private banks of Bangladesh known for its competitive and exceptional customer service. The bank has a two-wheeler loan scheme which has several perks.

EBL offers loans ranging from 50000 BDT to 4 Lac BDT which is one of the highest in Bangladesh. However, you will get 70% of the actual price of the bike as a loan. The registration will be a joint one and you will need to have a minimum income of 25000 BDT to be eligible for this loan. There is a 0.5% processing fee and 0.5 % early settlement fee added to the loan.

The standard 9% interest rate is applicable for the two-wheeler loan. You will also need to have first-party insurance while registering the bike. EBL two-wheeler loan can be a great choice considering the low eligibility criteria as well as provision for early settlement. For more information, visit the official site here.

Read:Student Loans in Bangladesh: Banks Offering Education Loans for Higher Studies

Uttara Bank motorcycle Loan

The motorcycle loan of Uttara bank falls under their private transport loan scheme along with the car. Their motorcycle loan details are as follows.

The standard maximum loan amount is 1 Lac BDT. The amount might seem less. However, UBL only offers 50% of the price of the motorbike as a loan. Considering the percentage, the amount should be ample for many. The loan repayment period ranges from 12 months to 60 months. The bank offers an early settlement facility.

However early settlement will incur you a breakage fee. There is no minimum income requirement with their motorcycle loan. But you will have to have 2 guarantors against your loan. The standard loan rate is 15% which is non-changeable for the entire duration of the loan. There is no loan processing fee at UBL which can be a bonus. To read more, you can refer to their official site here.

Read Best Personal Loans in Bangladesh to Make Your Dream Come True

City Bank Loan

City Bank has made a considerable stride in the private sector of Bangladesh. The bank offers competitive features which might make it a good choice for many.

To start, the bank offers up to 10 Lac BDT as a loan. It’s the highest motorcycle loan amount available in Bangladesh. The bank also offers one of the highest percentages of bike prices to match the loan at 80%. You can increase the value up to 90% if you take the loan against any existing FDR in CBL.

In addition to that, the bank offers 100% of the price as a loan for women. This is unprecedented considering no bank offers a special scheme for women. There is a 1.5% loan processing fee which you have to pay upfront. The repayment tenure is about 36 months at maximum. The bank also lets you purchase multiple bikes with a single loan and the percentage is adjusted accordingly.

The salary requirement is just 20000 BDT to be eligible for the loan. What's interesting is that there is no early settlement fee. You can pay off through a lump sum amount and you won't be charged extra for that. To read more, check out their official site.

Read: Saving vs. Investing Money: Know the Pros and Cons

Prime Bank Motorcycle Financing Loan

Prime Bank offers a range of loan schemes in the personal transportation category. The bank has a separate loan structure for motorcycle financing. You can easily sign up for a loan from any nearby branch of Prime Bank with the required documents.

Prime bank has one of the most competitive interest rates in the personal loan category. You can get up to a 5 Lac loan which will cover up to 80% of the price of the bike. You will get an additional percentage limit of 10% if you opt for life insurance with Metlife. The utmost repayment time of the loan is about 36 months.

The bank changes a small amount of processing fee and early settlement fee which varies depending on the sum of the loan. You have to be eligible for the Prime Flexi Pay credit card system to avail of this loan. You can read more about prime bank loans here.

Read Best Home Loans in Bangladesh to Build Your Dream Nest

Brac Bank Motorcycle Loan

Brac is another leading bank in Bangladesh that offers competitive motorcycle loans. The bank has been operating since 2001 and has been a key instrument in the overall private sectoral development of the country.

The minimum eligibility for the loan in Brac bank is comparatively lower than other banks. A salary range of 15000 BDT to 18000 BDT is applicable to be eligible for the loan. There is also no requirement for securities. You can get up to 5 Lac BDT as a loan as 80% of the bike price. The loan processing fee is 1% for male applicants and 0.5% for female applicants.

The maximum repayment period is 36 months. The interest is also competitive and varies depending on the loan sum. There is also a small percentage fee for early settlement. Brac bank also requires you to have first-party insurance to be eligible for the loan.

Read Mobile Insurance Offers in Bangladesh Can Save Lives

HSBC Personal Loan

Though technically not a motorcycle loan, HSBC personal loan can be availed for a competitive advantage while purchasing one. HSBC is one of the leading international banks in Bangladesh with an excellent financing record.

The HSBC personal loan is eligible for anyone over 23 years of age. You need to have a valid source of income and documentation supporting the claim. One positive thing about HSBC's personal loan is that you don’t need a guarantor or security deposit to be eligible for this loan. However, you need to have a stable income of over 15000 BDT and above to be eligible. The loan amount ranges from 50000 BDT to 10 Lac BDT.

However, HSBC only sponsors 30% of the actual expense on the product or service you intend to spend the loan on. The low percentage makes it difficult for many to avail this loan. The repayment tenure ranges from 12 to 60 months. The interest rate varies according to the disbursed amount and there is no additional fee for early settlement. Though the bank charges a small percentage as a loan processing fee.

Read: Digital Currency: Benefits and Risks of the Cashless Economy in Bangladesh

Bottom Line

Getting a motorcycle is now easier than ever thanks to all the available loan schemes. Though almost all the leading banks provide two-wheeler loans, their services and schemes grossly differ. While a bank might have a high interest and low repayment period, others might have a higher loan percentage with a lower rate. All of these factors should be duly noted before opting for a loan scheme. Assess your personal situation and choose a scheme accordingly.