How to get the best interest rate for your two-wheeler loan
Use the important tips given below to get a lower bicycle or two-wheeler insurance interest rate:
Maintain an impeccable credit rating
To get a loan, you must have a good credit rating. Maintaining a good credit rating over the years can be extremely helpful in many ways. First, you will have an easier time getting loan approval. Second and most importantly, you can benefit from lower interest rates, since you become a reliable borrower in the eyes of the bank. The best way to maintain a good credit score is to use your credit card regularly for small transactions or to make small purchases on EMI and to pay the monthly payments on time.
Consider the term of the loan
When considering buying a two-wheeler on credit, consider taking out a loan with a shorter term than a longer loan. Even if you get lower interest rates on a longer-term loan, you’ll eventually have to pay more since you’re paying interest for additional years. Therefore, try to look for a loan that offers a lower tenure that you can pay off in just a few years.
Check Dealer Links
Your two-wheeler dealership will most likely have connections with multiple banks for EMI and loan options. When researching which two-wheeler to buy, you can also ask the dealer to provide you with available loan offers. Chances are you’ll find a good loan offer with competitive interest rates among the options offered by your two-wheeler dealer.
Find pre-approved loans
If you have a good credit history and a good relationship with your bank, you can approach them and ask if you qualify for a pre-approved loan for a two-wheeler. If your pre-approved loan is successful, the bank will also provide you with details of the loan amount you are eligible for, interest rate, term or repayment, etc.
Compare interest rates online
Most banks have also started offering loans and other online banking services that can be used with a click on your smartphone. You can visit the official websites of various reputable loan providers and check out the interest rates offered under the two-wheeler insurance plans along with the loan term. From the options available, you can choose a loan provider that offers the best interest rate.
Check with NBFCs
If you do not have a good credit rating and your loan applications are not approved by major banks, you can apply for a loan from a non-bank financial company (NBFC). NBFCs have a much more relaxed loan process, so your chances of getting a loan approved are much higher. However, you should also keep in mind that you may have to pay higher interest rates if you choose to obtain a loan from an NBFC.