Two-wheeler loan rates drop 5 per cent over a year

 Loans are now available at 17-18 per cent against 22-23 per cent a year ago in the metros, while in smaller towns it has fallen from around 27-28 per cent, around a year earlier, to 22-23 per cent now. This is the last of asset-backed loans where interest rates are still ruling high.

 The monthly disbursements of ICICI Bank, the largest financier, is now touching Rs 115 crore, followed by Centurion Bank at around Rs 40 crore and HDFC Bank at Rs 30 crore.

 ICICI Bank entered two-wheeler financing around two-and-a-half years ago. The bank has a book size of around Rs 800 crore. It now finances around 33,000 two-wheelers a month.

 According to ICICI Bank