How much down payment is required for a Royal Enfield bike loan?

A two-wheeler helps you navigate the busy and crowded Indian roads, and seamlessly zip through the narrow streets and lanes. Among the brands offering popular two-wheelers, one name, in particular, is known for muscle bikes with truly powerful engines. Royal Enfield is a renowned brand globally, and the company has a legion of loyal fans in India. Furthermore, Royal Enfield is the oldest motorcycle brand in continuous production, and the Royal Enfield Bullet 350 holds the honour of being the oldest motorcycle in continuous production. Therefore, its immense popularity among Indians shouldn’t come as a surprise.

Different types of Royal Enfield bikes in India

In the Indian market, the company has so far unveiled eight types of motorcycles. The top-end variants are the Royal Enfield Interceptor 650 and the Royal Enfield Continental GT 650. These motorcycles are incredibly powerful, and provide unparalleled speed and power on highways and tarmacs. However, if you want to go off-roading, you can opt for the highly sought-after RE Himalayan.

Other RE bikes offered by the brand include the ever-popular Bullet 350, RE Classic 350, RE Hunter 350, RE Meteor 350 and the recently launched RE Scram 411. However, their ex-showroom prices in India start from ₹ 1.5 Lakhs, and can go up to ₹ 3.1 Lakhs. For this reason, prospective bike owners go for Royal Enfield finance options, and rely on banks and NBFCs for two-wheeler loans.

Royal Enfield bike finance

Both banks and NBFCs offer Royal Enfield bike financing options with attractive bike loan interest rates. In early 2022, Royal Enfield partnered with L & T Finance to provide bike loans without needing hypothecation. Moreover, the lending entity offers quick loans in under three minutes, with bike loan interest rates starting from just 7.99%. With repayment periods of up to 48 months (4 years), L & T Finance offers Royal Enfield bike finance that covers up to 90% of the total cost.

Other lending institutions extend up to 100% financing of the bike’s on-road price, which includes RTO charges and insurance premiums. Here are a few banks and NBFCs that offer two-wheeler loans, their interest rates, and their maximum loan amount.

Bank/NBFC Interest Rate Loan Amount
Union Bank of India 11.80% – 11.90% ₹10 Lakhs
Bank of India 7.75% – 9.25% ₹50 Lakhs
State Bank of India 17.20% – 18.95% ₹3 Lakhs
Bajaj Auto Finance 11.20% onwards
L & T Finance 7.99% onwards ₹20 Lakhs
Punjab National Bank 10.40% onwards ₹10 Lakhs
Axis Bank 16.50% – 24%
HDFC Bank 14.5% onwards ₹5 Lakhs


Note: These are the latest interest rates being offered (Oct-Nov ‘22)

What is the minimum down payment for RE bikes?

When you opt for Royal Enfield bike financing, certain lenders provide a loan amount that covers up to 90% of the bike’s ex-showroom price. However, you will also come across lending institutions offering up to 100% funding of the bike’s ex-showroom price. In this case, you only have to cover additional costs, which include road tax, bike registration and insurance charges.

Thus, the minimum down payment you will have to provide is the difference between the bike’s total cost, which is its on-road price, and the two-wheeler’s ex-showroom price. This will only be around 10% of the bike’s price. Furthermore, the bike loan interest rate can range from 8% to 28% per annum, depending on the lending entity you choose.

That said, you will also find certain lending companies that offer Royal Enfield bike finance of up to 100% of the vehicle’s on-road price. This is also known as a zero down payment loan. If you avail of such loans, you won’t have to make a down payment while purchasing the Royal Enfield bike.

Banks vs. NBFCs

Before you think about opting for Royal Enfield bike financing, it is vital that you select between a bank and an NBFC. You also have captive financiers that offer attractive bike loan interest rates. However, more than 95% of two-wheeler owners either choose a bank or an NBFC, as these financial institutions offer better loan terms.

You need to consider several factors before choosing a lending entity. These include bike loan interest rates, loan-to-value (LTV) ratio, repayment tenure and down payment requirements. Once you find a lender with the most competitive loan terms, you can apply for a two-wheeler loan online.

You can visit Bajaj Markets and apply for a bike loan to finance the purchase of your dream Royal Enfield bike. You can finish the application process online within a few minutes, as the process is entirely digital and paperless. Furthermore, you won’t have to submit lengthy documentation and can avail of highly attractive interest rates. You may also avail of a zero down payment bike loan, eliminating the necessity of making a down payment while purchasing the two-wheeler.