We all have thought of buying our dream bike at some point of time in our lives. Now that you are scrolling through this page, I would like to believe that you have already decided on which bike you want to buy and are looking forward to some tips to help you get the best bike loan interest rate.
Don’t worry! We have got you covered. This article has been developed about some key points you can follow and pay attention to if you want to get lower interest rates when you apply for bike Loan.
- Your credit rating
Your credit rating, as with any other loan, is one of the most important factors that influences the interest rate. If you have a poor credit rating, you will either have to pay a higher interest rate or you may not be qualified for the loan at all.
- Your credit history
To get the best bike loan interest rate, your credit history should be flawless. If you’ve ever defaulted on a loan, you will probably have to pay a lot of interest.
- The Debt-to-income ratio
This shows how much of your current paycheck is being used to pay off loans and credit card bills. Pay off past debts to lower your debt-to-income ratio. The smaller your debt-to-income ratio, the better your chances of getting good interest rates.
- Always negotiate
If you negotiate with your lending provider when you apply for a bike loan, you may be able to get cheaper rates. So always try to give it a shot. You never know when you get a good deal after negotiation.
The status of your bank account is very crucial. You might expect a lower bike loan interest rate if you
- Your bank’s financial statement
have a suitable amount of money in your bank account.
- Always make comparisons.
Comparing the interest rates of the various loan options available to you is mostly for the purpose of determining how much each choice is going to cost you. This will help you figure out how much these options will cost you on a monthly basis.
- Nature of employment
It’s also vital to consider the nature of your job or occupation. Individuals who work for the government may qualify for a cheaper interest rate from some lenders. Self-employed people’s records, on the other hand, are closely inspected.
- Loan’s tenure
The loan’s tenure refers to the period of time it will take to repay the loan, including interest. The loan’s term is important because, while a longer-term means a lower interest rate and vice versa, if the loan’s term is too long, you may end up paying more. As a result, choosing the right loan tenure is critical for getting the best bike loan interest rate.
The aforementioned factors will assist you in obtaining the best interest rates when you Apply Bike loan based on your requirements.
Also, keep in mind documents required for bike loan –
Salaried Person:
- ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
- Two recent passport size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Last 3 month’s salary slips/ Form 16/Latest ITR
- Last 3 month’s bank statement is mandatory
Self Employed:
- ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
- Two recent passport size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/ Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Latest Income Tax Return (ITR)
- Last 3 month’s bank statement is mandatory
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