When the buses are always crowded and the auto rickshaws refuse you a ride, your daily commute can become a nightmare. Then it’s time to consider buying a new two-wheeler. Two-wheelers are not only practical and fuel-efficient; they have now become much more affordable, thanks to easy access to two-wheeler loans.
Applying for a bike loan online is a great way to finance your purchase without disrupting your savings. However, when applying for a loan, it is important to seek a deal with the best interest rates so that repaying the loan becomes easy.
You wonder how? Read on for some great tips on getting competitive interest rates on your two-wheeler loan.
1. Compare various offers
The interest rates for a bicycle loan can differ from one bank to another. So, before choosing a lender, look for the best deals. Besides low interest rates, compare various loans based on tenure, processing fees, prepayment penalties, foreclosure fees, and more to ensure you get an affordable loan.
2. Maintain a good credit score
A high credit score and a solid repayment history are the keys to obtaining a two-wheeler loan at attractive rates. A good credit rating will assure the lender of your creditworthiness and low risk, and they are more likely to offer you reasonable interest rates.
So check your credit score and background before applying for a bike loan online and take corrective action if it doesn’t meet the lender’s criteria.
3. Opt for a shorter term
The term of the loan can also have an impact on your interest rate. When applying for a two-wheeler loan, opting for a shorter term can lower interest rates because the risk factor is reduced. Although you have to pay higher EMIs, the interest component is significantly reduced.
4. Pay off existing debts
Your existing debts play a major role in determining eligibility for your loan amount and affect your ability to negotiate interest rates. Pay off any loans or credit card bills before applying for the bike loan. A lower debt ratio improves your financial capacity and allows you to negotiate reasonable interest rates with the bank.
5. Check company ties
When you are looking for a two-wheeler loan, you can either go to a lender yourself or check to see if the automaker or dealership has any ties to a bank. Often, many banks partner with bike companies to provide the buyer with exclusive loan deals at lower interest rates. Additionally, you can also benefit from faster loan processing and no processing fees on such transactions.
Therefore, it is better to check if the dealer offers such a facility and compare the interest rates.
6. Look for seasonal offers
Most car manufacturers offer special offers and discounts during the holiday or holiday season. You can grab amazing deals like lower interest rates, zero processing fees, 100% bike financing, and more. So it might be ideal to wait a bit longer and get better interest rates during such seasonal offers.
Another great way to get lower interest rates is to apply with a bank where you have an account. A good banking relationship can allow you to negotiate affordable interest rates. Or you can always apply for a bike loan online with IndusInd Bank. Along with the best interest rates, they offer fast loan processing, flexible repayment terms, and up to 95% financing for your dream bike!