Two-wheelers are the most comfortable and convenient mode of transport. Many lenders are available in the market to provide you with a two-wheeler loan at attractive interest rates.
Before you apply for the loan, it is essential to know the interest rate charged upon it. The two-wheeler loan interest rate varies from lender to lender. Typically it ranges between 12% to 18%. You can calculate it using a two wheeler loan interest rate.
Two-Wheelers Loan Interest Rate
The interest rates on two-wheeler loans vary from lender to lender. If you use collateral for availing a two-wheeler loan, then the interest rate will be quite less than the unsecured two-wheeler loan where no collateral is required.
How to calculate interest rates on a two-wheeler loan?
Some of the essential factors on which the interest rate depends are –
– The applicant’s income: Your income determines the interest rate charged on your two-wheeler loan. As your monthly income shows your credibility for repayments and thus, it also affects the interest rate.
– Type of vehicle: The interest rate also depends on the type of vehicle. From a motorbike to a high-end two-wheeler, the interest rates vary differently.
– Type of employment: Generally, self-employed individuals are charged with a higher interest rate than a salaried individual. It is because of the uncertainty associated with their kind of jobs.
– Loan Tenure: This is the repayment period of the loan. It is a significant factor that determines the interest rate.
– CIBIL Score: The interest rate also depends on your CIBIL score. If your CIBIL score is excellent, then you will likely get a loan with a low-interest rate.
Features of two-wheeler loans
Manageable EMIs: 2 wheeler loan are quite affordable with shorter tenure period of 12 to 48 months. It is quite easy to manage monthly installments.
Minimal Documentation: Two-wheeler loans do not have extensive paperwork. Only necessary documents such as ID proof, Address proof, and income proof are required. The entire process is hassle-free
Digitized Services: Nowadays, all the lenders have their websites which you can use to gather all the information about the loans and avail services online.
Several Repayment Modes: It is possible to repay the two-wheeler loan using several modes like UPI and net banking.
Additional Charges
Apart from the interest rate, there are additional charges levied on the loan.
1 . The processing fee is charged on the total loan amount. You need to pay it at the time of application.
2 . Foreclosure charges are levied when you repay the entire loan before the due date.
Conclusion:
It’s a dream of many youths to own and ride a two-wheeler. With easy financing and loan facilities, it has become more convenient and affordable to buy a two-wheeler of their dreams. Before applying for a two-wheeler loan, check the interest rates charged by the various lenders in the market. And in case you are not eligible for the two-wheeler loan, you can take the help of a co-applicant to boost your loan approval chances.