When buses are always overcrowded and auto rickshaws deny 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 convenient 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 an excellent way to finance your purchase without disturbing your savings. However, when applying for a loan, it is important to look for a deal with the best interest rates so that loan repayment becomes easy.
Wondering how? Read on for smart tips to secure competitive interest rates on your two-wheeler loan.
1. Compare Various Deals
Interest rates on a bike loan can differ from one bank to another. So, before settling on a lender, shop for the best deals. Apart from low interest rates, compare various loans based on tenure, processing fees, pre-payment penalties, foreclosure charges, and more to make sure you secure an affordable loan.
2. Maintain a Good Credit Score
A high credit score and a strong repayment history are the keys to securing a two-wheeler loan at attractive interest rates. A good credit score 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 history before you apply for a bike loan online and take corrective measures if it doesn't meet the lender's criteria.
3. Opt for a Shorter Tenure
The loan tenure can also impact your interest rate. When you apply for a two-wheeler loan, opting for a shorter term can lower the interest rates because the risk factor is reduced. While you will have to pay higher EMI, the interest component is considerably decreased.
4. Pay Off Existing Debts
Your existing debts play a major role in determining your loan amount eligibility 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-to-income ratio enhances your affordability and puts you in a position to negotiate reasonable interest rates with the bank.
5. Check for Company Tie-Ups
When you're looking for a two-wheeler loan, you can either apply with a lender yourself or check if the auto company or dealer has any tie-ups with a bank. Often, many banks tie up with bike companies to offer the buyer exclusive loan deals at lower interest rates. Besides, you can also enjoy faster loan processing and zero processing charges on such deals.
Therefore, it is best to check if the dealer offers such a facility and compare the interest rates.
6. Look for Seasonal Offers
Most automobile companies come up with special offers and discounts during the festive or holiday season. You can grab amazing deals such as lower interest rates, zero processing fees, 100% bike financing, and more. So it might be ideal to wait a little longer and secure better interest rates during such seasonal offers.
Another great way to secure lower interest rates is to apply with a bank where you have an account. A good bank 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 quick loan processing, flexible repayment tenure, and up to 95% finance for your dream bike!