Two-wheelers are the most common vehicle category in India.
Besides that, the two-wheelers are a blessing in disguise when it comes to
unforgiving traffic on Indian highways. Everyone can afford to buy two-wheelers
and get on with the currently available market loan options. The Indian
subcontinent can now also indulge in luxury rides, with the advent of lucrative
interest rates on two-wheeler loans.
Banks, non-banking financial firms (NBFCs) and online loan
providers have made two wheelers available to households easily. To understand
how to obtain a two-wheeler loan with low-interest rates, it is essential to know
how to calculate interest rates for two-wheeler loans.
How two-wheeler loan interest rates
calculated?
A bike
loan interest rates depend on what type of institution you are borrowing
from. Banks, NBFCs and various online lenders are charging interest rates
anywhere between 8 per cent and 18 per cent. The interest rate on your
two-wheeler loan will depend on multiple factors, such as:
Credit record
Age
Current financial situation
Bank income statement
Loan tenure
Type of two-wheeler you want to buy
Lending body (Bank, NBFC or Online Lender)
How to get low two-wheeler loan interest
rates?
There are two things most Indians are eager when buying a
two-wheeler, is the mileage and two-wheeler finance.
The higher the mileage, the better our chances of selecting the vehicle will
be. Compared to that, the lower the interest rate, the better the chances are
that we will pick the offer.
However, to get a maximum of your two-wheeler loan, it is essential
to pay attention to your EMI (Equated Monthly Installment) as well as the
interest rate provided to you.
Due to the compounding of interest rates every month, a
higher short-term interest rate loan may be more advantageous for you than a
very long-term loan with lower interest rates. The key is to check the right
amount of EMI for an acceptable tenure.
Your EMIs get calculated according to the principal amount
of your loan and the duration during which your 2-wheeler loan matures. You can
use the following formula when measuring manually to measure your EMI:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Lenders have their online websites where you can avail a bike loan instantly
— no waiting to get your loan approved. Just log in to your favourite bank
page, fill in the online application form, sign it, and get the deposited money
into your account instantly. With fast loan disbursements, no hidden charges
and one-time documentation.
