5 Ways To Get The Best Interest Rate On Two-Wheeler Loan

It may be a case that you are looking to buy a 2-wheeler for yourself or your family members and also considering to take a loan for the same. Here we suggest some ways to help you get the best deal on your two-wheeler loan:

1. Study and compare the interest rates charged on two-wheeler loan by different financial institutions:

Interest rate as well as associated charges on 2-wheeler loan vary from bank to bank. You can make a comparison considering parameters such as interest rates, processing fee, other charges that includes penalties, foreclosure charges. Prepayment charges etc.

 

2. Be mindful of your credit score:

Credit score is a measure of the individual's creditworthiness or in other words tells about a person's debt repaying capacity. 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 at your command say between 750-900, you can expect to get or certainly will get the best or cheapest rate available against the loan. Else, if its on the lower side, the institution shall charge you a higher interest rate as a risk premium over and above the usual interest rate charged for two-wheeler loan. But herein you need to be proactive in the sense that you have to first know your credit score and if its low then probably you should work to improve upon it and then may be apply for the loan later.

 

3. Look for pre-approved offers for two-wheeler loan:

If your transaction record with the bank is fine and all through you have built a healthy relationship with your banker then in such a case lending institutions dole out special pre-approved loan offers. Typically in such type of loans, you are well acquainted about the loan amount, rate, charges etc, so to say the terms and conditions of the loan are far more apparent. Also these loans get processed and disbursed very rapidly. For knowing about such offers, you can either visit your bank branch or access the net banking facility.

4. For still better deal you can choose to apply for the 2-wheeler loan when special offers are available:

Banks come up with special two-wheeler loan offers on occasions like Independence day, during some festival etc. At this time around, you can get a competitive interest rate, nevertheless, the banks will always take into consideration your risk profile. Also, as part of these offers, you can even get a loan with zero processing charges.

5. You can also go for a two wheeler loan that is available in tie up with the auto company:

If you are a prospective 2-wheeler loan borrower, there are 2 options available to you. One, you can choose the lender on your own, or the other is that these auto dealers also have tie-ups with lenders for such loans that is processed quickly and at the same time carries low interest rate. Availing loan through such tie-ups may also get you loan without processing charges.

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