bike loan interest rate – Auto Loan and Financing

Two wheels are better than four especially in a nation like India where traffic conditions almost make it impossible for a car owner to reach point A to point B in time. Hence, lenders are always on the hunt for more customers by offering loan interest rates that are competitive.

So how can one choose the bike loan interest rate that is ideal for them especially when there are countless lenders out there!?

Well, that is simple.

Bike loan interest rates are decided by a lender after the loan officer considers –

The financial capabilities and
The financial history of the applicant.

In recent years, lenders are, however, offering more leniencies towards loan applicants in a bid to attract more customers.

In this context, it is best to state that the loan interest rate, however, largely depends on the CIBIL score of the applicant. Even if the repayment habits and past financial history of the applicant are stellar but the CIBIL score of the same is poor, the applicant will end up getting awarded with a high interest rate.

Bike finance interest rates will be less for applicants who –

Have a stable source of income
Pay their taxes on time and
Have a healthy habit of returning what they owe to their lender(s) on time.

It also largely depends on the down payment for a bike along with the ex-showroom price of the bike. It can also vary depending on the requirements set by the bike dealer.

Hence, it is best to sit down with a loan officer at a bike dealer and have a detailed discussion regarding financing your bike. It is one of the many ways you can keep your dream bike from becoming a financial burden for you, in the long run!

Also, Read:

How To Choose The Best Two Wheeler Loan?

Paying the bike loan faster helps in lessening the financial burden of the borrower. The sooner you pay the two wheeler loan the better. One can go for prepay your loan option. To prepay your loan of banks or financial institutions will charge some amount of fee. It is possible to prepay your loan only when you have some surplus amount other than your fixed monthly income.

Below are the methods to pay your bike loan debts faster:

1. Make Use of Excess Money-

Few times people get money which they didn’t expect. For example: Bonus by the employer, old debt settled by friend etc. People should use such amount instead of wasting it.

2. Choose Auto Payments-

Few banks and financial institutions offer discounts if borrowers choose auto payments as it saves a lot of paperwork and time. It will also help in saving some money.

Additional Read: Bajaj 100cc Bike

3. Make Prepayment-

Though financial institutions may charge a penalty on prepayment, most lenders don’t mind a couple of extra installments per year. So, take advantage of that. Just in case, you’re capable to fully settle the loan, make ensure the savings you’re making via prepayment is somewhat more than penalty charged.

4. Negotiate Repayment Terms-

It is one of the most important step to negotiate bike loan interest rate, amount, tenure. One shouldn’t hesitate because any bank or financial institutions don’t want to let go of an eligible borrower.

5. Focus on Other Sources of Income

If your monthly income is not enough to pay off the bike loan then generate some other sources of income. This will help you in paying your loan faster.

Useful Links:

Is It Possible for a Student to Get a Bike Loan?

How to Get Bike Loan without Down Payment?

Documents Required for Bike Loan