5 ways to get the best interest rate on a two-wheeler loan
1. Study and compare the interest rates charged on the two-wheeler loan by different financial institutions:
The interest rate as well as the costs associated with the 2-wheel loan vary from one bank to another. You can make a comparison considering parameters such as interest rates, processing fees, other fees which include penalties, foreclosure fees. Prepayment charges, etc.
2. Consider your credit score:
Credit score is a measure of an individual’s creditworthiness or, in other words, indicates a person’s ability to repay debt. The CIBIL credit score is a three-digit number ranging from 300 to 900, with 900 being the best score. So if you have a good credit score available to you, say between 750 and 900, you can expect to get or certainly get the best or cheapest rate available on the loan. Otherwise, if it’s on the lower side, the institution will charge you a higher interest rate as a risk premium in addition to the usual interest rate charged for the two-wheeler loan. But here you need to be proactive in the sense that you need to know your credit score first and if it is low then you should probably work to improve it and then apply for the loan later.
3. Look for pre-approved offers for the two-wheeler loan:
If your transaction record with the bank is correct and you have established a healthy relationship with your banker, in this case, the credit institutions distribute pre-approved special loan offers. Generally, in this type of loan, you are well aware of the loan amount, rate, fees, etc., so to speak, the terms and conditions of the loan are much more apparent. Moreover, these loans are processed and disbursed very quickly. To find out about these offers, you can either go to your bank branch or access the online banking service.
4. For even better you can choose to request the 2 wheels loan when special offers are available:
Banks offer special loan deals on two-wheelers on occasions like Independence Day, certain festivals, etc. At that time, you can get a competitive interest rate, however, banks will always take your risk profile into consideration. In addition, within the framework of these offers, you can even obtain a loan without application fees.
5. You can also opt for a two-wheeler loan available in partnership with the car company:
If you are a potential 2-wheeler loan borrower, you have 2 options. First, you can choose the lender by yourself, or the other is that these car dealerships also have links with lenders for such loans which are processed quickly and at the same time carry a low interest rate. Getting a loan through such matchmaking can also get you a loan with no processing fees.