Several financial institutions in India offer two-wheeler loans at interest rates ranging from 8% to 28% per annum. The two wheeler loan interest rate 2021 is determined by a number of factors, including your income, job stability, credit score, etc. Here are tips to assist you in getting a lower interest rate:
- A high credit score
Make sure you have a good credit score before applying for a loan.
- Make your income-to-debt ratio more favourable
As you pay off your loans, a portion of your current income will pay off your existing debts. To obtain an affordable two-wheeler loan interest rate, you should pay off your existing loans before applying for a new one.
The best lender provides the lowest interest rates and other charges, such as processing fees, prepayment penalties, etc.
It is important to remember that even a slight change in interest rate for a two-wheeler loan can significantly affect your monthly EMI. Thus, when deciding on your lending institution and loan amount, you must research the price thoroughly.
- Consider alternatives to traditional lenders.
Last but not least, take out a loan from a reputable NBFC. Even though you have many options, they offer the best interest rates on two-wheeler loans for no down payment and quick approvals with minimal documentation.
The interest rate on a two-wheeler loan varies from the financial institution to financial institution. A number of factors are considered, including the loan amount, the loan type, the vehicle you wish to purchase, your income and employment status, and whether you are salaried or self-employed. According to all the above conditions, you can expect a loan interest rate between 8% and 18%.
In addition to researching the interest rates of bike loans from NBFCs that are reliable, you should be equally concerned about the flexible terms and security of your information. If you miss an EMI or make a late payment, read the loan terms and conditions carefully to determine the default rates you’ll be charged.
In case you are in the market for a new two-wheeler, or if your existing one has worn out, you should consider applying for a two-wheeler loan. A customer’s credit history and income status are considered when granting two-wheeler loans.
- Application criteria
When you meet certain criteria, you may be able to get two-wheeler loans from different banks and financial institutions. There is a variety of two-wheeler loan interest rates, depending on the type of institution or bank providing the loan. In the case of certain lenders, the rate of interest on bike loans starts at 0.99%, while the rate on auto loans begins at 7.25%. Make the right choice.
There are usually between 8% and 18% interest rates in India for two-wheeler loans, varying depending on the bank, the amount of credit, the loan scheme, the repayment term, the vehicle model, the net income, employment type, source of income, and credit history of the applicant.
It is also possible that the interest rate on bikes on credit will vary depending on its nature. A bank usually offers a secured two-wheeler loan, while a credit union offers an unsecured loan. Secured loans commonly have a lower interest rate, whereas unsecured loans have a higher interest rate.
Loan eligibility and documentation for two-wheelers
People between 18 and 65 are most likely to qualify for two-wheeler loans in India. There are three possible applicants in that age range: students, salaried professionals, and self-employed people. Some selected banks also offer the sale of two-wheeler loans to agriculturalists.
Applicants must submit proof of their identity and address. A bank account statement, a salary slip, an ITR statement, and a certificate of employment are also required. Individuals who own a two-wheeler and are self-employed must submit relevant supporting documentation.
Your two-wheeler loan interest rate will determine the final amount you will have to pay every month as EMI, so you should make an informed and calculated choice. Before making your final decision, read the information accurately and compare loan products and interest rates.