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How Can You Get the Best Deal on Your Two-Wheeler Loan?
Posted on Saturday, March 19th, 2022 | By IndusInd Bank
When applying for a two-wheeler or bike loan, how can you tell if you’re getting the best deal? No, a loan deal with the lowest two-wheeler loan interest rate isn’t the best. You may be tempted to accept the offer, but a little due diligence here can help you find a much better deal and save a considerable sum of money.
With competition increasing every year, many financial institutions are willing to bend for potential customers. This means you can secure a sweet loan deal to purchase your dream bike without straining your finances.
Here are four tips to get the best deal on your two-wheeler loan.
1. Maintain a Good Banking Relationship
Several banks in India like IndusInd Bank advance loans to existing customers at preferential rates. So when you apply for two-wheeler loan, start your loan journey by contacting a financial institution with whom you have an existing lending or banking relationship. If you have been a model customer, you might get a good offer.
Butif you feel you can find a better offer elsewhere, you can set their offer as the benchmark for comparison. Either way, this can be a good starting point for market research.
2. Conduct a Market Research
While there is no shortage of two-wheeler loan providers in the market, not everyone will offer a deal suitable for you and your pockets. Different financial institutions have different terms and conditions, after all. So, before you sign an agreement, here is what you want to compare:
- Loan to Value or LTV ratio
- Two-wheeler loan interest rate
- Maximum loan amount
- Processing fee
- Complete list of charges
Conducting comprehensive market research will help you find the most affordable loan deal, without compromising customer service or other features. Nevertheless, the final loan terms will come down to your credit profile. So make sure your credit score is good enough to qualify.
3. Consider the Loan Amount
In most cases, you’ll only get funds of up to 90-95% of your bike’s market price. This amount is directly affected by your repayment capacity and the bike model. Meanwhile, the remaining amount is taken as the down payment and financed from your pockets. However, if you don’t want to arrange the funds upfront, you can look for a zero down payment option.
Just consider the loan amount according to your budget and buying needs. It’s also a good practice to estimate your EMIs and total loan cost to decide on a loan amount, so you don’t over borrow.
4. Take Benefit of Special Offers
Many bike dealers and brands come with exciting discounts and exclusive offers around the festive season. So why not wait and buy your bike a little later than planned? You could benefit from additional benefits like free insurance, discounted processing fees, lower two-wheeler loan interest rates, 100% cost financing, and more.
While the benefits don’t seem a lot, they can save you a large sum of money on overheads like hidden charges. So don’t forget to wait for the seasonal sales and offers.
Over to You
Apart from the above, some other things to consider are the ease of application, loan processing time, prepayment charges, and customer service.
That’s it! With the above tips in mind, you can find the most suitable two-wheeler loan offer and ride home your dream pair of wheels.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
