Whenever we start thinking about buying a two-wheeler, the first thing that strikes us is the cost. But do you know that there are some ways to bring it down? One such way is getting a two-wheeler loan. But in order to get the best bike finance interest rate and cheapest EMI’s, you need to make sure you have all the right information and choose the best possible lender for you. So in this blog, I will touch upon all factors that need to be kept in mind while taking a two-wheeler loan.
A credit score is a number ranging from 0 to 760 that reflects the creditworthiness of a person or an entity. This number is generated based on credit information, including payment history, current debt obligations, and levels of available cash. It helps lenders assess your ability to repay a loan.
A good credit score can help you get a low bike finance interest rate and may even affect your car/house insurance premium, while a bad credit score may push down your career prospects. The Credit Score instantly shows pointwise your credit profile in percentage, and it is completely free. Simply visit our website and select a range of loan accounts to check for and the list of accounts will be created within seconds.
Nature of Loan
In India, most two-wheeler loans available are unsecured. A two-wheeler loan is a type of personal loan, which is made for the purpose of buying a new or used motor vehicle, including scooters, motorcycles and small cars.
The nature of your loan is one of the most important factors in your quest for the perfect two-wheeler. If you have a significant amount of savings in your bank account, an unsecured loan may be more suitable to you than a secured loan. On the other hand, if you have very little savings or have stagnated earnings, a secured loan with lower interest rates may be more suitable to you, than an unsecured loan.
Tenure of Loan
The tenure option on a two-wheeler loan in India can be anywhere from 3 to 10 years. This will depend on your creditworthiness and other aspects that will be discussed in further detail. A longer tenure means a lower monthly repayment, but it will also mean more interest is added to your principal amount during the loan period. So that the final repayment is equivalent to what you have borrowed, make sure to choose an option that best suits your needs.
After comparing your requirements with the tenures being offered by various lenders, you can apply for your dream two wheeler loan successfully online from the comfort of your own home.
Type of Interest
The type of interest is the rate of interest charged on a loan or paid by a lender. It’s calculated over a certain period and is usually expressed as an annual percentage. In the world of lending, the rate of interest can be broadly divided into two main categories; floating and fixed. A floating rate of interest is one where the rate of interest either increases or decreases with time, depending on a variety of factors like the present market conditions, the loan amount which is still due for repayment, your credit status, etc. A fixed-rate of interest is one where the rate does not fluctuate and will not be altered by any set factors throughout the duration of your loan period.
For those who are new to the world of lending and are still exploring different ways to finance their needs, it is important to maintain a sound knowledge of all the aspects involved in the process. It would definitely help if you were familiar with the key aspects to consider before choosing a preferential interest rate. Get Muthoot’s share price, historical charts, volume, market capitalization, market performance, reports, and other company details.