The incessant hikes in the prices of motorcycles available in India are a menace, to be honest. However, thanks to the easy availability of bike loans, buyers can let out a sigh of relief.
What about the high-interest rates that lenders typically assign to a bike loan?
Well, there is a solution to this problem as well. One should talk with multiple lenders before finalising one
Borrowers can get the lowest bike loan interest rates from their preferred NBFC or bank if they consult multiple lenders.
Back in the day, bike loans were considered a niche product by lenders as they entailed small profit margins. This was the reason why bike loans entailed steep interest rates. Now the norm is that when demand increases so does supply. And when supply increases, competition in the market goes up. To keep their respective interests intact, lenders started offering low-interest rates on bike loans.
Why consult multiple lenders before finalising one?
One must consult with multiple lenders before filling up a bike loan online approval form. The reason is enunciated below.
When a lender sees that a client has consulted with multiple lenders before them, they would offer low-interest rates. Every time one consults with a lender, the lender would run a background search about the prospective client. As the background search history is saved, other lenders will be able to view the records. When a lender sees that the prospective client already discussed with rival lenders, they would offer bespoke terms. A lender would rather reduce their profit margin instead of losing the client to a rival. It is a simple business practice and borrowers can use this to their advantage.
To learn more, consult a professional financial advisor.
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