The prices of automobiles in India witnessed multiple hikes this year. Motorcycles are no exception. This is why bikes in India are slowly getting out of reach of the common person. But surprisingly, the sales of motorcycles in India are not dipping. The reason is the easy availability of two-wheeler loan schemes offered by most lenders in India.
So, if you’re also planning to buy a bike on loan, take notes of the following aspects. These will ensure that you get the best bike loan interest rates –
The loan amount
Refrain from buying an expensive bike if you want to enjoy low-interest rates. The lender is there to make money. If they are bankrolling a client for a KTM 390 Adventure, they will charge high-interest rates.
Remember that big loan amounts lead to hefty interest rates.
It is as simple as that!
The loan tenure
Tenure stands for the time given to a loan applicant by a lender. This is the set time within which the loan applicant needs to pay the debt in full.
Tip– Short tenures lead to high-interest rates. Long tenures come with low-interest rates.
If one chooses a tenure period of 7 years, then they may end up paying more than they intended. Hence, choosing a suitable tenure period is the key. Consulting with an expert can help you out in this matter.
The credit score of the applicant
A high credit score is indicative of the fact that the applicant will pay the debt on time. It labels the application as a low-risk case. So, the lender will offer the lowest possible interest rate to such applicants.
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The credit history of the applicant
If the loan applicant has a good credit history, they will get low-interest rates. Defaulting on a loan, even for a single time, places a red flag in one’s credit history. A single red flag can increase the interest rate by many folds. Hence, paying debts on time is the way of the wise.
The annual or monthly income of the applicant
Low-interest rates are offered to those who earn a considerable amount annually or monthly. This ensures that the person will pay the debt on time with his income.
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The type of employment
Lenders prefer to give low-interest rates to applicants employed at a firm for more than five years. Low-interest rates are also available for entrepreneurs who have been running their firm for more than three years.
Follow the tips mentioned above to get the best bike loan interest rates. If you’re having issues, it’s best to consult a reputed lender. They can provide you with more insights to get the best bike loan interest rates and help you through the two-wheeler loan application.