What Factors Influence Two-Wheeler Loan Interest Rates?
Since childhood, many of us fantasised about owning a two-wheeler and whizzing around the city lanes. It is an ambition we want to realise once we start working and building our finances. You are bombarded with promotional phone calls and emails as soon as you take the first step toward even enquiring about the financing possibilities accessible to you.
These calls and emails offer you the best interest rates on your Two-Wheeler Loan. It is important to keep your budget in mind as you navigate through the seemingly limitless alternatives accessible to you. Determine down-payment amount, the loan sum, and the duration to repay your loan through equated monthly instalments. Many lenders also let you change the loan term while you are still paying off your EMIs.
In some situations, the Bike Loan allows for partial foreclosure, allowing you to shorten the loan term or even cut your remaining EMI amounts. Varying lenders provide different interest rates on your loan, but first figure out what Two-Wheeler Loan interest rate you can afford for the vehicle you want to buy. Several factors decides the ratges that lenders offer.
What are they? How to discover the right interest rates for your loan?
- One of the most crucial aspects lender consider for the interest rates is usually your credit history. Before your loan gets approved, lenders look at your CIBIL score, previous loans, and their repayment plan. So, negotiate an affordable interest rate on your Two-Wheeler Loan if you have a high CIBIL score, reflecting your creditworthiness.
- The amount you pay before claiming the loan gets referred to as a down payment. As a result, if your disbursement covers up to 30% of the cost of your chosen vehicle, the loan amount you need from the lender is less, and is more likely to offer you better rates. If you need up to 100% financing for your motorcycle your lender might negotiate a higher interest rate on a loan.
- The make and type of the vehicle also significantly impacts the Two-Wheeler Loan interest rate and thereby, impacts the financing you receive from the lender. In such cases, the vehicle serves as collateral during the loan term, and if you default, the lender tries to recoup their losses by selling it. As a result, popular models frequently have lower borrowing rates because their resale value is significantly higher.
Most lenders are ready to negotiate a reduced interest rate for your loan if your credit history is good.