The prices of motorcycles in India are increasing at an exponential rate. Hence, it is no surprise that the demand for motorcycle loans across India is also quite high.
Since lenders are in the sector to make money, there could be instances where one can face exorbitant bike loan interest rates.
However, there is a solution to this issue. All one would have to do is follow the simple tips mentioned below.
- Lenders would charge exorbitant bike loan interest rates to borrowers who do not have a spotless credit score. It means that borrowers who have defaulted on repaying their debts to other lenders would be charged high interest rates, so if you are looking for the best bike loan interest rates, you have to maintain a good credit score. There could be instances that a borrower with sketchy credit histories can even get their application rejected. Hence, the best step forward is to borrow money for a motorcycle only when one has a spotless credit score.
- The next step one can take is to apply for a motorcycle loan only when their credit score is more than 750. Borrowers with CIBIL scores less than 750 can face exorbitant interest rates. Furthermore, the lender can even set debt repayment terms that are strict and non-negotiable such as high EMIs.
- Borrowers should borrow money from lenders with whom they have a standing professional relationship. The logic here is simple. A lender with whom a borrower has a standing professional relationship has all the information about the borrower. It means that the lender would offer the borrower low interest rates and flexible debt repayment terms. This is a simple formula that lenders follow to retain their clients.
For more tips, one should consult with a professional financial advisor.
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