How To Get The Best Interest Rate For Your Two Wheeler Loan

The prices of two-wheelers and bikes have also increased significantly over the past few years. As a result, an increasing number of people have started taking loans to purchase bikes and two-wheelers. However, you eventually end up paying more money when you buy a two-wheeler on loan in the form of interest over the years. Fortunately, there are a few valuable points that you can use in order to get the best possible interest rate for your two-wheeler loan.

Use the important tips given below to get a lower bike or two-wheeler insurance interest rate:

Maintain An Impeccable Credit Score

In order to get a loan, you need to have a good credit score. Maintaining a good credit score over the years can be incredibly helpful in many different ways. First, you will have an easier time getting approved for loans. Second and most important, you can benefit from lower interest rates, since you become a reliable borrower in the eyes of the bank. The best way to maintain a good credit score is regularly using your credit card for small transactions or making small purchases on EMI and pay the monthly instalments on time.

Consider The Duration Of The Loan

When you are looking to purchase a two-wheeler on a loan, consider taking a loan which has a smaller tenure than a longer one. Even if you get lower interest rates on a longer tenure loan, you may eventually have to pay more since you are paying interest for additional years. Hence, try to look for a loan that offers a lower tenure that you can pay off in just a few years.

Check For Tie-Ups With The Dealer

Your two-wheeler dealer will most likely have tie-ups with multiple banks for EMI and loan options. When exploring which two-wheeler to buy, you can also ask the dealer to provide you with available loan offers. There is a good chance that you might find a good loan deal with competitive interest rates among the options provided by your two-wheeler dealership.

Look For Pre-Approved Loans

If you have a good credit history and a good relationship with your bank, you can approach them and ask if you are eligible for a pre-approved loan for a two-wheeler. If your pre-approved loan gets through, the bank will also provide you with details regarding how much loan you are eligible for, the interest rate, the tenure or repayment, etc.

Compare Interest Rates Online

Most banks have also started offering loans and other banking services online that can be availed with the click of a button on your smartphone. You can visit the official websites of various reputed loan providers and check out the interest rates that are offered under two-wheeler insurance plans along with the loan tenure. From the available options, you can choose a loan provider that offers the best interest rate.

Check With NBFCs

If you do not have a good credit score and your loan applications are not being approved by major banks, you can apply for a loan with a Non-Banking Financial Company (NBFC). The NBFCs have a much more relaxed loan process so your chances of getting a loan approved are much higher. However, you should also keep in mind that you may have to pay higher interest rates if you do choose to get a loan from an NBFC.