Bikes are one of the most popular means of transportation in India. Most people have bikes in India. There may be many reasons for this, but the fact that Indians like bikes and scooters is not unknown. However, the price range of bikes and scooters varies. In India, people who earns enough, still think before buying a bike.
The reason for this is that when you buy a bikes or scooter with cash, you have to spend a lot of money at once. This money can be spent on other things, because it is always good to prepare funds for emergencies. But are you interested in paying for your bike in emi? Of course, you have to pay the loan interest, but there are many ways to limit the interest you may need to pay. The interest rate of a bike loan emi depends not only on the size of the loan, but also on the combination of many factors.
Factors that affect bike loan interest rates
There are many factors that affect loan interest rates, but not all factors are the same: some factors are more important, and some are less important. These factors are:
Loan amount
Loan amount is one of the most important aspects of bike loan emi. The larger the loan amount, the higher the interest rate. Low amount, interest rates will also be low. However, for the above conditions, you must assume that all other factors are constant
Also Read: Things to consider while applying for loan to finance for second hand car
Loan Term
Loan Term is the term of the loan, that is, the time during which the loan must be repaid in full, including interest. Lower interest rates, and vice versa, if your credit lasts too long, you may end up paying more. Therefore, it is very important to choose an ideal repayment period to ensure the best interest rate for loans.
Credit rating
Like any loan, your credit rating is one of the most important factors that affect interest rates. If your credit is poor, you may have to pay a higher interest rate, or you may not be eligible for a loan.
Past Credit records
Your creditworthiness must be impeccable to get the best interest rate. If you have defaulted on a loan, it is expected that the loan interest rate will be very high.
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Your annual income
Your income is also an important factor because it helps the lender understand whether you can pay the full amount on time. If you have enough income, you may get a higher loan at low interest rate.
The nature of your job
Your job type or occupation is also important. Some loans offer lower interest rates to government employees and farmers. On the other hand, interest rates be higher for self-employed individuals.
Annual Financial Statements
The status of your bank account is also important. If you have insufficient funds in your account, you can expect higher interest rates on bikes loans.
Monthly installments
EMI, loan amount, interest rate and loan term are closely related and affect each other. Higher Emi means high interest.
If you want to buy the bikes or scooter of your dreams, many people may suggest that you go to the bank for bike loan emi, but the bank has many outdated terms and conditions and cumbersome procedures. When you go to the bank to apply for a loan, be aware that many banks do not provide loans for second-hand bikes and scooters. Refer to online lenders as well before taking a decision.
