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Monday, 26 July 2021

lowest interest rate providing platform of bike and car loan

Interest rate on two wheeler loan

Always planning to take a loan to buy the bike you want? Before you apply for one, take a look at the interest rates offered by some of the country's top lenders. The interest rate on this loan is anywhere between 7..35%. To 20.9% P.A.

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Two Wheeler Loan Interest Rates 2021

The table below will help you to compare the interest rate and processing fee charged by the Indian donor with its respective tenure.

How to calculate two-wheeler loan EMI?

Your EMI will show you how much you have to pay to the bank each month. Your EMI is mainly based on the principal amount of the loan, the interest rate and the term you choose.

Variable interest rate or fixed interest rate - which is better?

lowest interest rate providing platform of bike and car loan

p> Your processing fee and prepayment patterns will also play a role in determining your EMI.
It is always better to find out what your EMI will be before applying for a bike or scooter loan. Comparing different loan EMIs can help you identify cheap and suitable loans.

The Two Wheeler Loan Calculator is a unique payment calculation tool that helps you find your EMI in minutes. It's easy to use. Just write down the parameters of your loan and get your EMI and loan amnesty schedule right away.Sometimes, when you apply for a bike loan, your lender may give you a choice between a variable interest rate and a fixed interest rate. In such cases, which one should you choose?

The choice between a fixed rate and a variable rate depends on the level of risk associated with each.

respective tenures.

BankLowest Interest RateProcessing fee
Bank of India7.35% to 8.55%Rs.500 - Rs.10,000
Punjab National Bank8.7% to 10.05%Rs.500 - Rs.1,000
Corporation Bank9.90% to 10.00%At the discretion of the bank
Union Bank of India9.90% to 10.00%NIL
L&T Finance10.75% p.a. - 15% p.a.At L&T discretion
State Bank of India (SBI)16.05% p.a.2% of the loan amount + GST
Axis Bank10.80% - 28.30%Up to 8% of the loan amount
HDFC Bank20.90% p.a.Maximum 3% of the loan amount
Andhra Bank9.90% to 10.00%At the discretion of the bank
Bank of BarodaBRLLR + Strategic Premium + 4.00% i.e. 7% p.a. - 11% p.a.2% of loan amount minimum Rs.1,000
UCO Bank10.70% - 11.70% p.a.1% of the loan amount

Fixed interest rates are usually higher than variable rates. Fixed rates remain constant even when market prices change. For example, if you choose a fixed rate of 12% PA, it will remain the same.

On the other hand, variable interest rates vary depending on market conditions. The RBI changes the repo rate every time it is associated with MCLR (Marginal Cost Fund Based Fund Based Lending Rate).

Therefore, your rate may increase or decrease over time. That said, variable interest rates are usually lower than fixed rates. That is why borrowers generally prefer to take variable rates.

Two Wheeler Loan Interest Rate Reduction Tips

When you apply for a loan, your goal should be to get a minimum rate. Here are some tips that can help you get a lower rate:

Clear your credit: Your credit score plays an important role in determining the interest rate charged on your credit, so clear your credit history first. If you do not have good credit, look for ways to improve it before you apply.

Improve your current debt situation: In other words, check your debt-to-income ratio. This shows you how much of your current income goes towards paying off loan and credit card bills. Repay the existing loan and bring this ratio down. The lower the ratio, the more likely you are to get a good rate.

Negotiating with your Neder: Sometimes, communicating with your Neder can help you get better rates. This can be especially helpful in situations where you do not meet all eligibility criteria. For example, if you do not have enough income but you are expecting a salary increase, you can get a good interest rate by proving this.

Take a loan from your existing lender: If you already have a savings account in a bank, try taking a bike loan from them. If you already have a good relationship, you can get better rates.

Why should you compare interest rates before applying for a two-wheeler loan?

The main reason to compare the interest rates of the loan options available to you is that everyone wants to know what your cost will be. This will help you calculate how much you will have to pay each month from each of the options.

This will help you to find the cheapest loan. Comparing other parameters such as processing fees and payment terms will help you find a loan that best suits your current needs.

Things to consider when applying for a two-wheeler loan

In this section, we will talk about some things to keep in mind in addition to interest rates when comparing loan options.

In addition to interest rates, there are many other factors that determine whether a loan is favorable. By comparing these factors you can get the ideal and best two wheeler loan based on your needs.

Other things to consider besides interest rates:

Processing Fee: A processing fee is a one-time charge that your lender will charge to process your loan application. This can affect your monthly payments. So, even if you get a loan with a low interest rate, your processing fee will increase your costs. Choose a provider that offers you a low interest rate with reasonable processing fees.

Eligibility Criteria: Each nerd will have a set of eligibility criteria that you would expect to complete before processing your loan. Some lenders may have stricter criteria than others. NBFCs may have the least stringent criteria. Choose a provider whose criteria you can easily reach. This will help you get your loan without any difficulty.

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Prepayment Charge: Paying off your loan can help you save money on interest expenses. But if you want to repay or close your loan, many lenders charge a fee. Compare these costs if you plan to prepay or close your loan in the future. This will help you find out if it is beneficial to make predictions.
Other Fees: Make sure you have read the loan offer document thoroughly and find out the value of each other. This will help you avoid surprising expenses in the future. Also, it can help you find the real value of your loan.

Delivery time: This is the time you pay from the time you apply. Find out how long it takes for different lenders to approve and disburse your loan. This will help you especially if you are in a hurry to get a loan to buy a bike.

Customer Service: Many borrowers fail to take this into account when applying for a loan. The lender needs to have a good customer care service to answer your questions in the future. Not seeking good customer service can be very frustrating.

Discounts and Special Offers: Periodically keep an eye on discounts or special rates and loan terms offered by the lender. Many lenders offer special offers during the festive season. Its benefits can help you get better interest rates, better payment options and other loan terms.

Factors that affect two-wheeler loan interest rates.

Take a look at the various factors that affect the interest rate on your two-wheeler loan:

Your Credit Score: This is one of the most important factors that determines your interest rate. Most lenders have a fixed rate for this loan. But if you have a good credit score, you will get a lower interest rate. On the other hand, if your credit score is poor, lenders will probably charge you a higher interest rate.

Your Income Level: Every donor has a fixed level of income that they expect you to earn each month. The less you earn, the less risk you will have to pay off your loan. This means you will usually get a favorable interest rate. If you earn less, you will be offered a higher interest rate.

Your place of work: The place where you work or the organization you work for may be of interest to you. Reputable company can mean that you have a stable job and you are earning a stable income. This can translate into lower interest rates.

Nature of your job: Self-employer may offer different interest rates depending on whether you are self-employed or salaried.

Your age: Your age plays an important role in determining your interest rate. For example, if you are close to retirement, your loan may cost you more. This is because being close to retirement age means you will have less ability to repay the loan.

Your current relationship with the lender: If you already have a relationship with the loan provider, it will help you get better rates. A good relationship with the bank can get you better loan terms.

Note: These are some of the main factors that determine your interest rate. There may be others who are specific to the lender from whom you are taking a loan.

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