The popularity of two-wheelers is unmatched in India, and rightly so! From road trips to the daily commute, a two-wheeler can be your trusted companion on any journey. As a result, more and more people are opting for two-wheeler loans to afford their dream bikes comfortably.
However, selecting the ideal lender who offers low-interest rates is not easy. With various options available in the market, how do you choose the right lender? And how do you land the best interest rate? Let’s find out.
Maintain a healthy credit score
The first and foremost requirement before you avail a two-wheeler loan is to assess your current credit score. This is because your CIBIL score represents your creditworthiness and reflects your past repayment record to your lender. Thus, having a healthy credit score can help you land a lower rate of interest with most lenders.
However, if you feel you lack a good score, you can take measures to raise it by paying for expenses using a credit card and paying the bills timely.
Compare different lenders online
Since different lenders have varying interest rates and conditions, conducting thorough market research is vital for choosing the right lender.
Look out for additional charges like:
- Loan processing charges
- Prepayment charges
- Insurance costs and other clauses
This way, you can find a lender and loan scheme that offers the lowest interest rates and overall charges on a bike loan.
Look out for festive offers
Most financial institutions extend seasonal and festive offers on their loan schemes to boost their credit growth. These special loan offers often include benefits like lower interest rates, zero processing fee or free insurance, accessories, etc. Thus, taking a loan during such periods can help you save a considerable amount of money.
So, keep an eye out for any such offers before selecting a lender and loan scheme.
Negotiate with the lender
Once you have zeroed in on a lender, you can still negotiate for a better interest rate. To do this, you must convince your lender that you deserve a better interest rate based on your credentials. For instance, some lending institutions offer a lower interest rate to retired employees or army veterans.
Therefore, if you feel you deserve a lower interest rate, prove you have a good repayment capacity to your lender. As a result, you might land lower bike loan interest rates.
To sum up
If you are looking for an easy to ride vehicle, two-wheelers are an excellent choice. After all, they are easy on the pocket and offer a comfortable riding experience. So, if you are ready to purchase your desired bike, taking a loan is the most convenient route.
Many leading financial institutions provide competitive interest rates and loan schemes that can help you bring home your dream vehicle.
Furthermore, you don’t need to visit the branch to apply since you can apply for the loan online. You can also plan your EMIs and finances with a two-wheeler loan EMI calculator. So, why wait?