Two-wheeler loans are popular in India as most people prefer their vehicles to travel. Buying a two wheeler has many benefits, such as being affordable and making traveling easier and more convenient. Most people purchase their dream bike by obtaining an affordable interest-rate loan to cover its fund. If you are considering buying a two-wheeler using a two-wheeler loan, you should know what the things that affect the interest rate are.
Most lenders have eligibility criteria for their two-wheeler loan. You should ensure you are eligible for this loan, and the lender will approve your loan request. Also, learn about the factors that affect the interest rate for the two wheeler loan, as influencing the factor may help you reduce the interest rate. Let’s take a look at the factors affecting the two-wheeler loan interest rate.
Your Income source
The first thing lenders ask loan applicants is their income source. If you have a steady income source, you can negotiate with the lender to reduce the interest rate on your loan. This factor also affects loan application approval. If you don’t produce income documents to your lender, they may offer you no-income-based loans or reject your loan application.
Your age
Age is another factor that helps the lender determine whether a person will be able to repay the loan on time. Most lenders may charge a higher interest rate for a person closing to retirement than a person in their 30s. Lenders also charge more interest if you are young or employed recently. You should improve your credit score before you apply for bike loan online.
Loan tenure
Different banks offer different loan schemes, like tenure periods. However, if you choose a longer term for your loan, you have to pay more interest. Also, if you choose shorter loan tenure, you have to pay a higher EMI value which may be challenging for most people.
Type of vehicle
Lenders also ask applicants what type of two wheeler they want to purchase. Using a two-wheeler loan, you can purchase a second-hand bike or a new bike model. The type of two wheeler you select in the loan application will determine the two-wheeler loan interest rate.
Down payment
A down payment is part of the total payment you will be paying above your loan amount to purchase the two-wheeler. Increase the down payment to get a lower interest rate. However, if you don’t have enough funds for your bike, you can avail of 100% bike finance and pay zero down payment.
Credit history
Credit history determines your creditworthiness. Having a good credit profile means that you are financially disciplined and pay all your bills and expenses on time. Maintain a good credit history to lower the interest rate when you apply for bike loan online.
Tips on choosing a right two-wheeler
If you are young or buying a two-wheeler for the first time, you should look for these things in the bike or scooter to ensure it is the best option.
Brand
Choose a well-known brand that delivers the best two-wheeler to its customer. You can purchase a bike from several two-wheeler brands like TVS, Hero Motocorp, Mahindra, Suzuki, etc. if you buy a two wheeler from a trusted brand, you get more resale value and a lower two-wheeler loan interest rate.
Mileage
Mileage is an essential factor that you should consider. You should go for a two-wheeler bike with high mileage. You can search for the two-wheeler details online and compare them before you decide to purchase one. You should also apply for bike loan online to save more time.
Service Center
You should also check that the service center of your two-wheeler is in your locality. If you require maintenance, you don’t want to travel a long distance to repair it. You can also search for the bike’s available service center.
Maintenance costs
Two-wheelers require regular maintenance, so you should ensure you can afford the maintenance cost after paying all your expenses and loan EMI. You can ask a two-wheeler dealer or mechanic about the cost of the regular maintenance service.
Weight and height
Select a bike that you can easily handle according to your physiques. You should consider a lighter bike for easy handling. You should also consider whether the height of the bike is suitable for you by checking whether your feet touch the ground for balancing. Checkout the Bike Companies in Dubai.
Conclusion
When it comes to traveling, having a two-wheeler brings so many benefits. You can apply for bike loan online and purchase your dream bike without putting much stress on your savings or monthly expenses. You can build a good credit history by repaying your loan on time. Also, follow the tips to purchase the right two-wheeler that matches your requirement.
