More than 65 per cent of India’s population is below the age of 35. Furthermore, the spending capabilities of the young generation in India are at an all time high. Despite that, young adults still prefer to buy a bike and not a car.
Why is that?
For starters, motorcycles, unlike cars, allow one to save a lot of money from the beginning. To put things into perspective, savings begin from the bike dealership.
Here is the explanation.
Motorcycles come with affordable price tags. Furthermore, the ownership costs of motorcycles are also low. Then there is the ease of taking a bike from point A to point B. Unlike a car, a bike can cut through traffic like a hot knife cutting through butter. Bikes can conquer poor roads with ease and they can be parked easily. On top of all these, motorcycles consume less fuel and have low emissions.
The incessant price hikes of motorcycles are menacing!
The overall sales of motorcycles in India have spiked in recent years. However, one cannot ignore the high ex-showroom prices of their preferred bikes.
By increasing the prices of bikes, brands are making up for the losses they have incurred during the pandemic.
But even with the exorbitant price tags, the sales of motorcycles in India have not decreased. The reason is simple. Buyers have access to a myriad of financing options that come with attributes like two wheeler loan online approval.
But what about the high interest rates that lenders typically charge?
There is a solution to this predicament as well. All one would have to do is follow the tips mentioned below. By following the tips, one will be able to get low interest rates on their preferred bike loan scheme.
It is best to consult multiple lenders
It is possible for one to get low bike loan interest rates from NBFCs as well as banks when one consults multiple lenders. Bike loans were a niche product back in the day. It meant that the profit margin for a lender was low when they sold a bike loan scheme. Hence, bike loans back in the day came with high interest rates. These days, as the demand for bike loans has sky-rocketed, the competition has increased. Hence lenders will offer low interest rates just to secure a client instead of losing it to its rivals.
One can follow the simple trick of consulting with multiple lenders in a single day. Every time a lender does a background research about a prospective client, the research history is saved. By the end of the day, the last lender will see that the prospective client has already consulted with its rivals. Hence, without haggling, the lender will give in to the terms of the client. And one will end up with a loan that entails a low interest rate and convenient clauses.
High credit scores also mean low interest rates
Lenders also offer borrowers low interest rates on bike loans if the borrower has a credit (CIBIL) score of above 750. In the eyes of a lender, a borrower who has a high credit score has never failed to pay up their debt. Timely EMI payments also lead to high credit scores. Hence, if one wants to enjoy a low interest rate then one must make sure their credit score is high.
Borrowers with spotless credit histories can also get low bike loan interest rates
Lenders also prefer to be more lenient towards borrowers who do not have any running debts with other lenders. Borrowers with credit histories showing they have never defaulted on a loan also tend to get special treatment from lenders.
To learn more, it is strongly advised that one consults with a professional financial advisor.
Must Read: How We Can Calculate Two Wheeler Loan EMI?