Purchasing the preferred two-wheeler on a loan can be tricky if you aren’t sure about the lender and the quoted interest rates. Therefore, it is necessary to be aware of these 4 factors to get the best interest rates on your credit line.
- Credit History
Lenders instill faith in your repayment history upon checking your credit score. Therefore, a higher credit score automatically qualifies you for a lower two wheeler loan interest rate.
- Cost of the Bike
A two-wheeler loan for a budget-centric bike has better chances of getting approved and attracting nominal interest rates.
- Down Payment
In case you choose to make sizable payment upfront, it is possible to get a better deal on the two wheeler loan interest rate as the lenders are expected to show more faith in your repayment capabilities.
- Loan Tenure
If you want to procure a lower interest rate for your two-wheeler loan, you should opt for a longer tenure and consider prepaying the same after a certain point in time.
In addition to these four factors, your job, financial stead, annual income, and credit history also have a bearing on the interest rates.