Category: Bike Loan Interest Rates

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.

Must read: Why Bike Loan is The Best Option to Buy a Bike?

In recent years, the prices of motorcycles available in India have gone up by many folds. 

Hence, it has become impossible for anyone to buy a bike with cash. The only solution is to apply for a bike loan. What about the high-interest rates that lenders tend to levy on borrowers? Well, borrowers can get low-interest rates if they follow the tips mentioned below.

Borrowers should consult multiple Lenders before selecting a Loan Scheme

NBFCs (Non-Banking Financial Companies) and Banks tend to levy low bike loan interest rates on bike loan schemes in a bid to remain competitive. The trick borrowers can apply is to consult multiple lenders. On top of this, borrowers can also choose to buy a bike during the festive season.

There are countless lenders currently running their operations in India. Hence, it is natural for competition among lenders to be fierce. When a lender understands that a borrower has been consulting with their rivals, low-interest rates will be offered.

It is as simple as that.

One can get Low-interest rates just by having a stellar Credit history

It is best for a borrower to apply for a motorcycle loan when they have never defaulted on debt repayments. Furthermore, borrowers who do not have any running debts with other lenders can also enjoy low-interest rates. In simple words, borrowers with stellar credit histories will be offered competitive bike loan interest rates.

One can get Low-interest rates when they have a high Credit Score

Borrowers with CIBIL scores above 750 would be offered low-interest rates when the former apply for a motorcycle loan. At the same time, borrowers with CIBIL scores below 750 will be levied high-interest rates. There could be instances where the lender simply rejects the loan application.

For more tips, it would be best to consult a professional financial advisor.

Must read: How To Calculate Two Wheeler Loan EMI?

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.

Must read: How We Can Calculate Two Wheeler Loan EMI?