Two-wheelers are India's most popular category of
vehicles. Besides that, when it comes to unforgiving traffic on Indian
highways, two-wheelers are a blessing in disguise. Everybody can afford to buy
two-wheelers and get going with the current loan options available on the
market. With the advent of lucrative interest rates for two-wheeler loans, the
Indian sub-continent can now also indulge in luxury rides.
Banks, Non-banking financial companies (NBFCs) and online
loan providers have made 2-wheelers easily available for households. To
understand how to obtain a low-interest two-wheeler loan,
it is important to understand how interest rates for two-wheeler loans are
calculated.
How two-wheeler loan interest rates
calculated?
Interest rates for two-wheelers depend on the type of
entity you borrow from. Banks, NBFCs and various online lenders charge interest
rates from 8 per cent to 18 per cent anywhere. The interest rate on your two-wheeler
loan depends on different factors such as:
Your credit score record
Age
Current financial responsibilities
Bank income statement
Duration of your loan
Type of two-wheeler you want to buy
Lending body (Bank, NBFC or Online Lender)
How can you get the lowest two-wheeler
loan interest rates?
There are two things most Indians are looking for
while making a purchase of interest rates for a two-wheeler, i.e. mileage and
two-wheeler loan. The higher the mileage, the better the chances that we will
select the vehicle. In comparison, the lower the interest rate, the better the
chances are that we will pick the loan offer.
To get maximum of your bike loan, however,
it is crucial to pay attention to your EMI (Equated Monthly Installment) as well
as the interest rate that you are offered. EMIs are the recurring payments that
you are going to pay.
Because interest rates are compounded every month, a
higher short-term interest rate loan may be more advantageous to you than a
very long-term loan with lower interest rates. The key is to find the right
amount of EMI at the price that you are given for an acceptable tenure.
Depending on the principal amount of your loan and the
period in which your two-wheeler loan will mature, your EMIs are determined. When
you calculate manually, you can use the following formula to calculate your
EMI:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Nevertheless, using online two-wheeler loan
calculators available in India, you can easily calculate and compare EMIs
against tenures. Plus calculate the overall interest you would pay for various
tenures.
Banks offer online websites where you can instantly
avail a two-wheeler loan amount — no more waiting to get your loan approved.
Simply log in to the portal of your favoured bank, complete the online
application form, sign it and get the money deposited instantly into your
account. No hidden fees and one-time documentation with quick loan
disbursements. Go take that long road trip you have always wanted to with the
help of instant bike loan!
