Technological advancements have led to a significant surge in the number of vehicles in India, especially two-wheelers. The best thing about buying a two-wheeler is that they are comparatively cheap, easy to maintain, and offer more freedom while commuting.
Getting a two-wheeler loan is a great way to make the dream of buying your bike a reality.
A two-wheeler loan is a type of loan which is not secured by collateral (unsecured). It has lower interest rates and is available with flexible repayment options.
However, before taking a two wheeler loan, individuals can compare the interest rates to get the lowest interest rates on their loan.
With Muthoot Capital, you can get a two-wheeler loan with the lowest interest rates starting from 0.99% per annum.
Factors affecting the interest rates on a two-wheeler loan
When you are in the market searching for a bike loan with the lowest interest rates, first you need to know the factors that affect the bike loan interest rates. It is essential to know these factors so that you can be in a position to bargain for the best deal.
The factors that affect the two-wheeler loan interest rates are:
1. Credit Score
Bike loans come with varying interest rates, so to receive a lower interest rate on your loan, you must have a good credit score. However, like Muthoot Capital, not all lending companies look at credit score when approving a bike loan.
A credit score shows the individual’s repaying ability. It is computed based on your credit and repayment history.
People with higher credit scores (750+) are offered loans at lower interest rates than people with a lower credit score.
2. Income
One major criterion that lenders will consider before deciding on the bike loan interest rate is the income earned by the individuals and the source of income.
So, if your income is not very high, you might have to consider a loan with a higher interest rate. In contrast, higher-income individuals usually have a lower interest rate.
To get a bike loan with Muthoot Capital, you must fulfil some income requirements.
3. Age
The bike loan interest rates also depend on age. Applicants with lower age will have a lower interest rate as the repayment time for these loans is longer.
To get a bike loan with Muthoot Capital, you must fulfil some age requirements.
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4. Loan tenure & amount
The interest rate on a bike loan will also depend upon the loan tenure and the amount you wish to borrow.
If the loan tenure is longer, you might receive a lower interest rate and vice versa. If you want a higher amount, you will have to pay high-interest rates and vice versa.
With Muthoot Capital, you can opt for a loan with a repayment tenure between 12 to 48 months.
5. Bike Model
Bike loan interest rates will also depend upon the type and model of the bike you are looking to buy.
The model and price of the bike will positively correlate with the interest rate, i.e., the lower the model and price, the lower the interest rate.
Conclusion
The biggest benefit of taking a two-wheeler loan online is the convenience that it offers. Individuals can easily apply for a loan anywhere, anytime as the process is done online.
However, the first step to ensuring you are getting the best deal for your loan is to shop around and compare interest rates and fees from different lenders. Interest rates will differ depending on factors like income, age, loan amount and credit score.
So, it makes sense to compare loans from different lenders to find the one that best suits your needs so you can secure a low-interest rate.With Muthoot Capital, you can get a two-wheeler loan easily and quickly, with the lowest interest rates starting from 0.99%, minimum documentation, and prompt customer service.
