Bikes are considered cost-effective amid rising fuel costs. Hence, the two-wheeler is a preferred mode of transport among Indian families. You require lesser maintenance and space than a car and can cruise through Indian roads without hassles. Whether there are clear roads or traffic congestion, you are bound to reach your destination on time.

A Two-Wheeler Loan from a reputed bank helps you buy your favorite bike and improves your credit score if you repay it on time. Applying for a Bike Loan can be a good idea when you do not want to hamper the liquidity, or there is a cash crunch. While you dream of buying your favorite motorcycle at reasonable interest rates, make it happen with these smart tips:

Check the Credit Score

Clean credit history and good score are prerequisites for availing of a Bike loan at an attractive interest rate. It also ensures the bank lending to you is not fraught with risks. With a score of 750-plus, you can get the best scheme with the lowest Two-Wheeler Loan interest rate.

Compare Interest Rates

Interest rates and Loan charges vary between banks. Compare the various products available before applying for them. Use parameters like interest rates, processing fees, penalties, pre-payment and pre-closure charges, late payment fees, etc., to decide the best offer. Select the bank offering the lowest and best interest rates to make your bike purchase cost-effective.

Check for Special Offers

Most banks introduce special Loan offers often. For example, you can land a good deal during festivals like New Year, Independence Day, etc. Besides an attractive interest rate, you may also get a chance to grab the Loan at zero processing charges and other offers.

Research Well

The interest rate, loan amount, and Loan to Value ratio differ between banks. While applying, be prepared to pay for various charges attached with two-wheeler finance, such as processing fees. With good research, you may find a bank charging minimum or no fees for processing or part pre-payment for the borrowing.

Loan Amount

Many banks offer Loans to value on a bike for a maximum of 90% to 95%. Compare the LTV ratio and Two-Wheeler Loan amount offered by different lenders. Always assess your budget and repayment capacity before applying for the financial product.

Repayment Options

Check the repayment options with different banks. The more the tenure, the higher the interest component. Selecting a scheme with flexible installment payments allows you to repay the Loan quickly while ensuring you do not miss a payment.