Two wheelers are popular in India. Purchasing a two wheeler is a dream come true for many. It is common to take a loan to purchase a two wheeler. This article provides some solid tips on getting the best two wheeler loan rates.
Indians love their two-wheelers, as evidenced by the fact that India emerged as the most significant two-wheeler market in the world in 2017. As of 2017-18, almost 20 million two-wheelers were sold across India, making it the most popular vehicle category in our country. Two-wheelers comprises mopeds, scooters and motorcycles. Rising incomes, improving infrastructure, and higher aspirations have contributed to the burgeoning increase in two-wheeler sales. Apart from all these, easier financing has also played a role. Banks and non-banking financial entities are willing to offer loans for prospective two-wheeler buyers. A significant number of two-wheeler owners purchase their vehicles by availing loans. Securing a loan quickly is no longer an issue but wrangling a favourable two-wheeler loan interest rate is.
Here are some solid tips to get the best 2-wheeler loan interest rates:
Maintain a Healthy Credit Score
Never default on your loans. Pay off your loans on time. Avoid taking too many unsecured loans. All these will help you maintain a healthy credit score. A healthy credit score will play a vital role in helping you finalize best bike loan interest rate.
Be Employed by a Reputed Employer
If you are working in a reputed company, then the chances of remaining employed and earning a stable income are higher. This means that you are likely to repay the loan on time without any breaks. Therefore, a favourable interest rate could be offered
It Helps to be Younger
If you are older and approaching retirement, then the interest rate is likely to be higher. If you are starting off or in the prime of your career, then the bike loan interest rate will most probably be easier on your wallet.
Are you earning well? Then you may have savings and might not need a loan. However, it is assumed that the higher your income, the lower are your chances of struggling with repayment. Therefore, if you are earning well, you can expect to receive lower two wheeler loan interest rates.
Have an Existing Relationship with the Lender
If you are already a customer of the lender, then you may not only be offered better rates, but you could also negotiate for the same. For instance, if you have deposits in a particular bank and inquire about two wheeler interest loan rate, then you can expect your banker to offer competitive rates.
Be Salaried Rather than Self-employed
Lenders perceive salaried professionals to have stable incomes and consistent rise in their incomes. Whereas both income levels of self-employed individuals are perceived to fluctuate. Therefore, salaried professionals are likely to receive a better deal when it comes to bike loan interest rates
Demand a Longer Loan Tenure
If the loan tenure is longer, then your interest rate would be lower. However, you may end up paying a higher amount as your EMIs would continue for longer
Do keep in mind that these factors are generic and different lenders would employ different criteria to assign two wheeler loan interest rates. Therefore, it would be prudent to research thoroughly about prevailing 2 wheeler loan interest rates and then choose the offer that works best for you.