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Indian Overseas Bank Two Wheeler Loan

Two Wheeler Loan
  • Easy Processing
  • Attractive interest rates
  • Compare across banks

The Indian Overseas Bank is a leading bank among the public sector banks that is based out of Chennai, Tamil Nadu. The bank has a large network comprising of over 3500 domestic bank branches across the country, with 1150 branches in Tamil Nadu alone. The software used for the online banking facility that is provided to customers has been developed by its in house Information Technology which is ISO certified. The bank has also received 100% CBS status and 100% networking status for the IOB branches. IOB has a network of approximately 3300 ATMs within the country. Apart from India, IOB also has its branches in Singapore, Colombo, and Hong Kong, Bangkok and Seoul and representative offices in Vietnam, Guangzhou and Dubai.

Perfect Personal Loan Deals for you

Why do we need Two Wheeler Loans today?

The needs and wants of the people have seen a drastic change in the present times. We are slowly progressing from a dependent economy to a more independent and stable one. The same trend has been applied to our lifestyles as well. We are slowly getting accustomed to living a luxurious lifestyle, irrespective of whether we can afford one. Credit Cards have fulfilled the need to live a life of certain standard. Similarly, the number of people who use public transport in our country are steadily declining. No one likes to plan their lives around someone else’s schedule. Having our own vehicle has fulfilled that desire of ours where we plan our routines according to our own schedules, needs and wants. However, traffic is a major concern in our country with every street and corner facing huge blocks especially during the peak hours. Hence, the preference for two wheelers is becoming popular today for this reason because they are smaller, can be parked easily and can take you to your destination much faster than other modes of transport. But not everybody is financially stable enough to pay the entire amount for the purchase of a two wheeler. Having seen this need, many banks and other financial institutions today offer two wheeler loans to make it more accessible to the masses and help in more people becoming independent and self-sufficient. IOB is one such bank that caters to the needs’ of the masses.

Features and Benefits of IOB Bike Loan:

Purpose of the Two Wheeler Loan:

You can avail this loan only for the purchase of new two wheeler.

Loan Amount:

The loan amount for your two wheeler will be determined using the following ways –

  • 90% of the cost will be incurred by the bank to purchase the two wheeler
  • 10X (10 times) your gross monthly income
  • Rs. 60, 000

From the above mentioned ways, you will be given whichever is lower.

Know About:

Interest Rate for IOB Two Wheeler Loan – Pushpaka:

  • The interest rate for the IOB Two Wheeler Loan is that of a floating interest rate.
  • You will be charged 10.40% per annum as interest.

Repayment policy:

IOB offers flexible and easy repayment that does not hamper your lifestyle. The repayment of the Pushpaka loan does not add heavily on your monthly payments and thereby helps maintain your established standards of life.

You can repay your Two Wheeler Loan in 72 EMIs or Equated Monthly Installments.


  • Your two wheeler should be insured for the entire value with the bank clause
  • The bank lien on your two wheeler should be entered in your R.C. book
  • Hypothecation of your two wheeler purchased

Eligibility Criteria for IOB Bike Loan (Pushpaka)

Permanent Employment Criteria – Indian Residents:

  • Employment in a government office
  • Employment in a public sector undertaking
  • Employment in a reputed private enterprise
  • Self – employed professional

Note: You can apply for the loan even in your company’s/ firm’s name

Non- Resident Indians (NRI)

You must obtain a suitable guarantee from a Resident Indian that is acceptable by the bank.

Income Eligibility Criteria:

  • Your take home pay must be 50% of your gross salary after insurance and PF deductions.
  • Your total monthly income, including your spouse’s income and any other income has to at least be Rs. 5000 for the purchase of a two wheeler.

Documentation Required for IOB Bike Loan:

  • Salary Certificate
  • Proof of Income – Income Tax Return or Assessment
  • Quotation or Proforma Invoice for your new two wheeler

Fees and Charges for IOB Bike Loan (Pushpaka)

Loan Amount Fees and Charges in Rural Areas Fees and Charges in Other Areas
Up to Rs. 2,00,000 Rs. 134 Rs. 168
Above Rs. 2,00,000 Rs. 134 per Rs. 1,00,000 Rs. 168 per Rs. 1,00,000

Note: The above values are subject to change

Comparing the IOB Two Wheeler Loan (Pushpaka) with other banks:

It is common knowledge that public sector banks often offer loans at a significantly lesser rate of interest than many other private banks. This can be applied to the Two Wheeler Loan offered by the Indian Overseas Bank. Being a public sector bank, it offers you the Two Wheeler Loan at a competitive interest rate of 10.40% when the average market interest rate for two wheelers today is above 11%. Also, the bank does not have any restrictions for make/model purchase of two wheelers. You can use the Two Wheeler Pushpaka Loan offered by IOB bank for the purchase of any two wheeler of your choice and receive the funding for it accordingly. On the other hand, there are other banks that restrict your choice of two wheelers if you want a loan from them. For example, the ICICI two wheeler loan can only be used for Harley Davidson models, whereas you can use the Pushpaka loan for the purchase of any two wheeler you desire. Another striking aspect of the two wheeler loan offered by IOB is that this loan is made available to you even if you are in a rural area. This facility is not available among many leading banks in the country. In fact, if you are from a rural area, the processing fee is also significantly lower compared to other areas in India. The IOB Two Wheeler Loan (Pushpaka) proves advantageous in many aspects that makes it a desirable choice for a two wheeler loan.


  1. Can I avail the IOB Two Wheeler Loan (Pushpaka) even for used two wheelers?

    No. The IOB Two Wheeler Loan (Pushpaka) can only be availed for the purchase of new Two Wheelers. This loan is not applicable for used two wheelers.

  2. Is there a minimum income criteria that needs to be fulfilled in order to apply for the IOB Two Wheeler Loan (Pushpaka)?

    Yes. To qualify for the IOB Two Wheeler Loan (Pushpaka), your minimum monthly income should at least be Rs. 5000. You can apply for this loan with a monthly income above this value. However, note that the said minimum income does not only include your individual monthly income, and that it can also include your spouse’s income and any other income for you to apply for this loan.

  3. Who can apply for the IOB Two Wheeler Loan (Pushpaka)?

    A. Both, Indian Residents as well as Non-Indian Residents are eligible to apply for the IOB Two Wheeler Loan (Pushpaka) provided all the employment eligibility and income eligibility criteria have been met.

  4. Are the fees for processing the IOB Two Wheeler Loan (Pushpaka) different for rural and urban areas?

    Yes. For a loan amount up to Rs. 2, 00, 000, the processing fee in rural areas is Rs. 134 and for urban areas it is Rs. 168. For a loan amount above Rs. 2, 00, 000, the processing fee per Rs. 1, 00, 000, in rural areas is Rs. 134 and for urban areas it is Rs. 168.

  5. Q. What is the interest rate structure for the IOB Two Wheeler Loan (Pushpaka)?

    IOB follows a floating interest rate structure for the IOB Two Wheeler Loan (Pushpaka). The interest rate charged for this loan is 10.40% per annum.

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