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Factors That Affect Bike Finance Interest Rates?

If you are in the market for a two-wheeler and want an easy way to pay the bike’s price, bike loans are the solution. You get to choose the interest rate before applying for a loan online or at any of our branches. Thus, we can give you the most convenient payment option to suit your financial needs and convenience.

Choosing a bike loan with an unfavorable stick rate is not a wise decision. It is often observed that many borrowers have to pay high interest rates for their bike loan despite applying for low-interest bikes. This happens because of lack of awareness about the factors that influence bike loan interest rates. 

In this post, we will discuss what these factors are and how they affect the bike finance interest rates:

When buying a bike, it is often more expensive than you thought. Hence, proper finance aid is the key to getting your dream bike at the right price. With loan facilities available for all people, you can now easily buy your new two wheeler bike of choice. However, before applying for a bike loan make sure that you know and understand interest rates as these factors can help you choose the right loan for you.

  1. Credit or CIBIL score:  Your Credit Information Bureau India Limited (CIBIL) score, previous loans and repayment plan play an important role in deciding your bike finance interest rate. A good credit profile helps you qualify for a loan at a lower interest rate and with minimal prepayment penalties. We offer easy monthly repayment options so that you need not worry about having insufficient funds at the end of the month.
  2. Down Payment: The down payment refers to the amount of money that the person can pay right at the moment of purchase. If you can pay a high sum amount, 50% or 70% of the total amount, you can enjoy cheaper interest rates. The higher the down payment amount, the lower the bike loan interest rate
  3. Source of Income:  Your income source plays a major role in determining your interest rate. If you are a salaried employee, you would be able to get your loan approved at a lower interest rate. This would help you in saving a substantial amount of money on repaying the loan installments. In case of fixed deposits or even investment based personal loans, there are many factors that influence the final interest rate that is applicable.
  4. Residence: When choosing your personal loan, you should consider factors such as the place where you live and work, your income and how much debt you have. These key factors will determine your eligibility for two wheeler loan. Housing loans generally have lower interest rates than most other personal loans because of the regulations imposed by the government to protect borrowers in distress situations.
  5. Your age: When it comes to loan, the age of the borrower matters a lot. The moment you get closer to your retirement, you might not have the capacity to repay a high-interest rate loan on time. In such cases, your monthly installments would be higher and in turn, your bike loan interest rates would increase as well.
  6. Income:  The interest rates on superbike loans in India vary according to your income. If you are a salaried employee and have a salary of INR 15 lakhs or more, you can get the low rate of interest of 5.25% per annum. On the other hand, if you wish to buy a superbike for business purposes or if you are self-employed and earn at least INR 5 lakhs every month, then you can avail our loan services with an interest rate of 6.25% per annum.

 

Conclusion: 

Are you interested in a bike loan? This can be a complex topic for many people. It’s fun to plan out your next bike and exciting to see new places but we want you to consider all aspects of your 2 wheeler finance before making any decisions. That is why we’ve compiled a list of factors that may affect your two-wheeler bike loan interest rate.

Muthoot Capital offers their customers high-quality and competitive financial services. They provide loans with low and suitable interest rates that directly translate into your savings. Their interest rates are affordable, with good flexibility in repayment tenure and general terms and conditions, thus giving you the freedom to make all your dreams come true!

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