Here are all the factors that affect your bike loan interest rate
For millions of Indians, a two-wheeler is one of the primary modes of commuting. Reports suggest that in 2019, 21 million two-wheelers were sold. And although there was a drop in two-wheeler sales during the pandemic, the year-on-year rise in two-wheeler sales since 2020 has been a good 9 %. There are various reasons why more and more people are looking to invest in a two-wheeler, especially during the post-pandemic period. For example, the fear of infection in public transport has led many people to jump onto their bikes. Further, banks and financial institutions are introducing attractive bike loan interest rate deals making a scooter or bike purchase easier for consumers. The affordable bike loan interest rate is leading people in droves to buy bikes for themselves.
Apart from the new bike loan interest rate, people are also choosing bikes more and more in India due to the increasing rate of traffic jams. Some Indian metropolitan cities like Bengaluru, Pune, Mumbai, etc., are listed as cities with extreme traffic congestion. Due to all these reasons, not only people with average income but people with high incomes also prefer to own bikes. Further, it has been predicted that this bike market will keep expanding depending on the large Indian population with mid-level income.
Are you still wondering whether or not to get a bike? Or worried about a lack of funds? Or concerned that you might have to dip into your savings to buy a two-wheeler? Worry not, bike finance has got you covered. With bike finance, you can buy a bike without damaging your savings plan. It is a fund procurement method you can choose to buy a two-wheeler of any type.
Bike Loan Interest Rate
Bike loan interest rate is becoming more and more affordable since the demand is consistently rising. Interest is the amount you pay over and above the principal when you borrow a loan to buy a bike. In short, the lender charges you this amount for making the funds available to you. L & T Finance offers extremely affordable new bike loan interest rate, starting from 7.99%. You can avail of this attractive offer from the website or PLANET App. To find out the interest amount you will be paying, use a bike loan interest rate calculator.
Bike Loan Interest Rate Calculator
Being prepared for any situation whether good or bad, always leads to a stress-free life. In the same way, before applying for a bike loan, it is best to be prepared for the repayment as well. A bike loan interest rate calculator allows you to calculate the interest rate you will have to pay with your EMIs each month. Preparing financially beforehand for such an event is a wise decision as it will not only keep you mentally relieved but will also help you build a great credit score.
How can the interest rate on bike loans be lowered?
Although bike loans are affordable, there is no harm in taking measures that would reduce your interest rate even further. Here are some ways in which you can reduce your rate of interest:
• Good credit score: A good credit score is a sign of being a good customer. Try to maintain a good credit score throughout your adult life as it is extremely beneficial when you borrow loans. A good credit score will certainly lead to a lower rate of interest.
• Debt-to-income ratio: Your debt-to-income ratio determines whether you will have a low or high rate of interest. Make sure you maintain a balanced ratio where you are not paying off more in debts than you are earning. A balanced debt-to-income ratio will let you lower your interest rate as you will be more likely to make your payments on time.
• Negotiation: This is one of the oldest tricks in the trade. You can always try to negotiate the interest rate with your lender by showing a regular source of income and your history of no defaults.
Now that you know the factors determining bike loan interest rate we are sure you will make the right decision. Borrow a bike loan from LTF today and become a proud owner of your newfound freedom. With these affordable rates you just can’t say no! Carefully analyze what affects bike loan interest rate and get your loan at the best rate.