The Loan interest rates offered by different financial institutions vary. However, there are other factors too that affect two-wheeler or bike loan interest rates. Before availing the two wheeler loan must check and compare the interest rates of different financial institutions offers.

Understanding these factors can help you benefit from the best two-wheeler loan rates. These are:

• Loan amount: The amount of loan you seek is one of the crucial aspects of determining the interest amount. A higher loan begets greater interest rate while the requirement of a lower loan amount means that the interest rates would be considerably lower. 

• Loan tenure: This has more to do with the time you need to repay your entire loan inclusive of the interest charges. While choosing an increased loan tenure means repaying the loan at lower interest rates, it also means paying way more than what you had envisaged due to the increased number of instalments involved. A smaller tenure means increased instalment amount, thus, necessitating a lesser number of payments and therefore lower interest rate in the long run.
• Credit Score: For those who do not pay attention to their CIBIL scores, remember that their credit history matters. Having defaulted on a loan in the past means that either your next loan application would be rejected or you might be asked to pay higher interest on your loan.
• Income matters: Lenders would like to know your annual income to gauge your ability to repay the loan amount. If your salary slips of the past three months do not portray you as someone with enough income level, you may be asked to pay higher interest or rejected outrightly.
• Vehicle type: Your choice of two-wheeler will have a determining effect on the interest rate. The interest rates are different for each kind of vehicle you want to buy be it a moped, motorcycle, scooter or any other.

  Additional Read: Use Two Wheeler Loan EMI Calculator to Calculate Your Bike EMI