How to evaluate interest rates and EMIs for two wheeler loans in India
Purchasing a dream machine like a fancy bike has always been thought not far from many minds. After the covid-19 pandemic, commuting through private vehicles has become a need and necessity. That is purely from the view of keeping a social distance. With one of these or a combination of both the factors, you have plans to purchase a bike but are short of funds, a two-wheeler loan or bike Loan is the way out for you.
Being a potential buyer of two-wheeler loans, you should always search for a lender that is offering the lowest two-wheeler loan interest rates. Online, there are many lending platforms are available where you get the possibility of checking out the interest rates offered by various banks and non-banking financial companies. You need to do a thorough study of the market, different loan schemes that are on the shelf before deciding on the option that suits you the most.
Two popular interest rate schemes offered in Two-wheeler loans
Most financial institutions including banks or NBFCs offer mainly two kinds of interest rate schemes. They are fixed rates or variable rates. The fixed rates of interest remain constant over the loan tenure, whereas the variable-rate changes as and when there is a change in the repo rate announced by the RBI. Normally, variable rates are lower than fixed rates of interest.
So, evaluate your monthly EMIs with variable interest rates and fixed interest rates both to arrive at a decision.
How to arrive at a right EMI amount
To arrive at the right EMI amount for your two-wheeler loans, a borrower has to be financially wizard. Use a Two-wheeler loan calculator and fill in the required details.
- The loan amount that you need
- The desired loan tenure
- Your preferred rate of interest
It is the easiest way to evaluate your two-wheeler loan EMIs. As most banking operations are going digital, all banks and financial institutions offer online bike loans today. The official websites have an option on the homepage where you may directly make an application for Two Wheeler Loan. As a potential buyer, you will have to follow some simple steps for an online application:
- Visit the homepage of a bank or a non-banking financial institution
- Click on the online two-wheeler loan application
- Fill in the basic details. You need to fill up your name, city of application, make and model of the Two Wheeler, etc.
- Fill in your credentials - i.e., provide your KYC details.
- Once the details are filled up correctly, the loan eligibility will automatically show up
- After which, you may proceed with the loan approval
Innumerable companies are operating in micro-financing and instant loans. It’s quite common for an applicant to get confused while choosing a loan offer for a two-wheeler. However, if you go through some portals and check the EMI for the bike calculators on these portals, you will get a fair idea of evaluating EMIs and interest rates for two-wheeler loans in India.
