Are you planning to buy your dream bike? Well, having a two-wheeler makes your life smooth. However, buying one might require you to dig into your savings.
A bike loan can come to your rescue. It can help you purchase your favorite two-wheeler. And, you can repay the loan in easy EMIs. However, you might be bothered by the high bike loan interest rates.
Don’t worry. We will give you some superb tips to get the lowest bike loan interest rates on your two-wheeler loan.
Tips To Get The Best Bike Loan Interest Rates
1. Maintain A Good Credit Score
Whether you buy a Bajaj or KTM bike, your credit score is the first thing your lender will check. Well, your score depends on how you have repaid your earlier loans. So, make sure you pay off all your dues on time.
A decent credit score will help you get a lower interest loan from your lender.
2. Have A Stable Income Source
Apart from your credit score, your lender will check your income. Firstly, they will see if you earn enough to repay the loan on time. After that, they will also check if your source of income is stable. That will assure them of your repayment capacity.
Lenders prefer if you are a salaried individual. However, you can also get a bike loan if you are self-employed. You just need to have a regular and stable income.
3. Compare The Bike Finance Schemes Of Different Lenders
Many lending institutions can provide you bike finance. But, their interest rates vary. So, make sure you do your research before applying for a two-wheeler loan.
You can compare the interest rates of different lenders. It will help you to get the lowest interest rate on your bike loan.
4. Take A Secured Loan
Now, what is a secured loan? Well, it is when you keep collateral with the lender. For example, it might be your property or something valuable like gold. How does that help? It acts as an assurance that you will repay the loan. So, the lender will charge a lower interest rate from you.
However, the interest rate will be higher if it is an unsecured loan. So, if you wish to get a lower rate, consider keeping some collateral with your lender.
5. Make A Higher Down Payment
If you make a higher down payment while purchasing your bike, you can borrow a lesser amount. Thus, your lender will agree to charge a lower interest rate from you.
However, if you need your bike finance to cover 100% of the cost, you will have to pay a higher interest rate.
Getting a two-wheeler loan with a lower interest rate will help you manage your finances efficiently. That is because you will have to pay a lower EMI. Following these tips will help you get the best interest rates on your bike loan.
Bajaj Finserv Auto Finance offers rates starting from as low as 7.25%. Moreover, you can get instant approval without having to wait for days.