When it comes to getting the vehicle you need, a two-wheeler loan is a great way to do it without putting a lot of money down. A loan can help you avoid the initial cost of a down payment since most lenders require a minimum of 10%.

In addition, you can spread the cost of the bike over several months or years if you take out a loan. You can save money by not paying the bike loan interest rate on the total purchase price and making it more manageable for your budget.

It is common to find bike loans with interest rates between 12% and 27% in India. The interest rates differ depending on the bank/NFBC you approach, the time you’ve been employed, your income range, the model of the bike, etc. Today, banks and NFBCs provide two-wheeler loans at very reasonable interest rates, which have decreased over the past few years.

Owning and maintaining two-wheelers is easy, so they are a good choice for personal transport. Furthermore, the process of buying and maintaining a two-wheeler and taking out a two-wheeler loan is now more convenient than ever! You can find the best deal for you by comparing interest rates and terms between different lenders. Additionally, it is always suggested to never sign any loan document without reading the fine print!

Benefits of two-wheeler loan

Easy application and payments

One of the most significant advantage of a two-wheeler loan is that they are easy to obtain and repay. You can easily apply online in a few simple steps. Moreover, lenders now offer pocket-friendly interest rates. 

Improving credit scores

Two-wheeler loans have easy-to-pay interest rates, which can help you improve your credit score. Your timely repayments measure how consistently you can repay your two-wheeler loans. During the approval process of other loans, this helps in confirming your credibility.

More affordable in the long run

Getting the bike of your dreams does not require you to empty your savings account. Select models of two-wheelers are available with no down payment from lenders in India. Before you apply for a loan, explore your options.

Lower the interest rates

Besides your income and job stability, your credit score plays a major role in determining your bike loan interest rate. Following these tips will help you get a lower bike loan interest rate:

1. A good credit score
2. Checking the credit score before submitting a loan application
3. Your Debt-to-Income Ratio 

Apply online for lower interest rates.

Choose the lender who offers you the best deal in the market by checking for the lowest interest rates. Also, check for hidden and miscellaneous charges, such as processing fees, prepayment penalties, etc. For a loan, choose an NBFC with a good reputation. Bajaj Finserv is one such NBFC that you can choose to avail of a two-wheeler loan. You can obtain quick loans with minimal documentation, good customer service, and two wheeler loans with no down payment at the best interest rates.

Many banks also offer two-wheeler loans at various bike loan interest rates. You can quickly get your documents processed and the loan amount approved through major private banks. All you have to do is fill out the paperwork and wait for your loan to be approved. However, before applying or submitting any application, you must consider your income and repayment capacity before making a decision.

Private banks offer quick processing of a loan so that auto dealers can sell their two wheelers within three to four days. Private banks provide better services at a little higher cost than government and cooperative banks. The dealer may suggest a few partners as an option, and you can ask the bank to offer you a low-interest loan. The percentage may sometimes be reduced by 0.15% or 0.25%.

A loan with a higher deposit is a good idea when taking out a loan. You should not make an initial deposit of 10,000 rupees when you buy your vehicle, but rather around 25,000 to 30,000 rupees. You will be able to reduce your monthly EMI by doing this.

Start with a low-interest loan. If you are looking for a quick processing of your loan and are able to pay off within 4 days after receiving the payment, take this loan. The EMI will come down, and you will be able to get rid of the high interest rates that may be provided by government or cooperative banks.

A private bank provides a better service and the dealer is more cooperative in comparison to government and cooperative banks. The lower rate of interest saves money for the buyer and makes it easier for the dealer to sell his product.