Two-wheelers prices are rising with the increasing demand for bikes in India. Reputed lending organisations offer two-wheeler loans at competitive interest rates to help customers tackle the rising costs. Renowned lending institutions, like non-banking financial companies (NBFCs), can finance certain models of two-wheelers with up to 100% of their on-road price at low-interest rates. The two wheeler loan interest rate depends on certain aspects.
Way to Get a Two-wheeler Loan at a Low-Interest Rate
Customers can take a look at the following factors that can help them to get online bike loan at lower interest rates comparatively:
1. Prefer Shorter Loan Tenure
A longer-term loan can reduce the bike EMIs, but it may increase the interest rate. The lender may charge a higher interest rate for long-term loans as it increases the risk of default. If one can afford to pay more towards the loan, EMI can choose a shorter-term tenure.
2. Apply for the Required Amount Only
The loan amount is one of the factors that impact the interest rate on bike loans. A higher loan amount may increase the interest rate. A borrower should determine the required amount and apply for the loan amount accordingly. The higher the bike cost, the larger the sum required as the loan amount.
3. Maintain a Good Credit Score
Credit score is one of the most crucial aspects of the whole loaning system. The loan seekers’ credit score must be high based on their spotless credit history to secure bike loans at a lower interest rate. Credit rating agencies assign credit scores to individuals based on various factors. Borrowers who repay all their loans or credit card bills and meet their other financial obligations on time can maintain a score of 750+. It reflects that the borrower has sound creditworthiness as they have treated their loans or credit card bills well. Most lenders consider it a good score to offer a reasonably low-interest rate.
4. Good Relation with the Lender
Individuals who have already taken a loan from a lender should maintain a healthy relationship with it. Timely repayment of existing loans helps to maintain a long-standing relationship with the lender. The existing lender helps their faithful customers with lower interest rates on a bike loan. Borrowers can negotiate with the lender to get a bike loan at the best terms.
5. Show Additional Income
Lenders need to ensure that the borrower can repay the loan EMIs on time. They need to check the borrower’s income. If possible, individuals can show an additional source of income, like rental income, to get online bike loans at a reduced interest rate.
Individuals looking to finance a two-wheeler with a loan should consider the above-mentioned important factors, work on these and enjoy lower interest rates. Check the loan eligibility criteria, and calculate interest before making an online application form to apply for a suitable loan tenure.