How to Find Out the Best Two Wheeler Loan at a Lower Interest Rate?

Last Modified: 28-May-2024

Best Two Wheeler Loan at a Lower Interest Rate

Two-wheelers are a 21st-century necessity that helps individuals commute quickly without losing time. They are the cheapest way of transportation and are therefore a lifeboat to fulfilling peoples’ dreams. Buying a bike can on a 100% downpayment may not always be an option. In cases like that, one can go for a bike loan and repay it in EMI’s.

Muthoot Capital provides bike loans with up to 100% market value at interest rates starting at 0.99%. The loan repayment tenure is also very flexible and can be as long as 60 months. You must calculate the amount you need beforehand and must also calculate EMI to keep things manageable. You must also contemplate the bike loan interest rate as this factor highly influences the EMI.

Factors Affecting Interest Rate of a Two-Wheeler Loan

Muthoot Capital provides bike finance with the least hassle-free documentation. However, the EMI of the loan highly depends on the interest rate. You can find the best two-wheeler loan at a lower rate by considering the following factors. These factors directly influence the bike loan interest rate

1. Loan Amount

The first factor influencing the interest rate applied on loans is the loan amount. If the loan amount asked by an applicant is higher, higher interest will be charged, and if the amount is lower accordingly, lower interest will be charged.

2. Loan Tenure

Loan tenure of the bike finance highly affects the interest rate. The longer the tenure, the lower the interest rates will be charged, and the shorter the tenure, the higher rates will be charged. Going for too long tenures traps an applicant to pay a higher interest rate; thus, choosing the right tenure is very important.

3. Income of the Applicant

The applicant’s income shows whether or not the applicant can repay the loan easily. If the loan EMI increases to more than 50% of the income, repayment becomes difficult. If the income is satisfactory, then there is a better chance of getting a lower rate.

4. Type of the Job

The interest rate charged also depends on the applicant’s type of job. If the job is salaried, then the interest rate reduces due to its stability, while for self-employed individuals, the evaluation becomes tougher, and interest rates rise accordingly.

5. Equated Monthly Installments

The EMI of the loan, tenure, loan amount, and interest rates are connected to each other. The longer the EMI, the more interest will be charged. However, the interest rates increase every year, and thus you must not go for a longer tenure.

6. Financial Statements

The more sound your bank account is, the greater is the probability you have of getting a lower interest rate. The financial statements show the applicant’s repayment ability and gain the lender’s trust, reducing the interest rates charged on a particular loan amount.

By keeping a note of these points, you can limit the interest rates applied on your bike finance to be minimum. Try to improve the factors to reduce the interest rate, ultimately reducing the strain you will face while repaying the loan. If taken care of, the above points will also provide you with instant approval and loan sanction.

Muthoot Capital offers various bike loan schemes for various applicants to choose from. The bike loan interest rate starts from almost 0.99% per annum only. The process to apply for the loan involves simple steps, and the interest rates might differ from person to person depending on the factors mentioned above. Contact us to calculate the eligibility and find the interests in your credit score.

About Author
Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.
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