Factors Affecting Interest on Bike Loan

Bikes are exhilarating. They give you the feeling of freedom and power. You can cruise down the open road, take in the beauty, or make aggressive and daring moves and show off your skills. All in all, the Zen feeling you get with an open-air ride is second to none. Whether you love a bike for its independence, the easier commute, or the thrill of it, there’s no better time than now to reclaim your independence. Rather than dipping into your savings, hit the road faster with a bike loan. It’s a flexible, effortless, reliable, and stress-free option to find the right bike within your budget while fulfilling your aspirations. But are you eligible? If yes, what factors affect your two-wheeler loan interest rates? Let’s find out.


One of the key factors a bank or lending institution considers for any loan is your income. Essentially, a stable occupation and steady income reflect your soundness and capability for repayment. The higher your income, the better your chances of affording and repaying the loan. The more likely you are to repay your loan, the lower the interest rate. Say your income is Rs.50,000; you can expect an interest rate of 16 to 20%. A person who earns one lakh per month may look at 14 to 16%. The rates vary from bank to bank.

Credit Score

Credit history and credit score play a vital role in determining the approval of your loan, as well as the interest rate at which you can get a two-wheeler loan. It gives lenders an overview of your past experiences with loan repayments and your ability and willingness to repay the amount. Typically, credit score ranges from 300 to 900. Anything above 700 is good to excellent, 650 to 699 is fair, and anything lower is doubtful to bad. So, if you fall in the good to an outstanding category, your creditworthiness is high, and your chances of loan approval increase. Lower scores indicate your inability to repay the loan. You can speak with the bank for better two-wheeler loan interest rates if you have a stellar score.

Your Employer’s Status

A bike loan is unsecured; that’s why lenders look for various sources that enable them to trust the borrower. One among them is the reputation of the employer. Working in a reputed company has more perks to it than the name! The logic is simple – it all traces back to your ability to repay the loan. If you work in an esteemed organization, you’re financially stable, ensuring you can make monthly payments on time. Sometimes, some lenders even have relaxed lending policies for those who work in particular organizations.

Loan Term and Loan Amount

The loan term is the duration you must repay the loan. Generally, long tenures and higher amounts bear low monthly payments but higher interests. Conversely, short-term loans and smaller pieces have a high monthly repayment amount but low overall costs and interest rates. Once you check your two-wheeler loan eligibility, you can find specifications regarding the loan interest amount, durations, etc. If you’ve decided that now is the right time to buy your new bike and start your new adventure, you can conveniently and almost instantly check your two-wheeler loan eligibility online. With swift processes, you’ll be able to drive home your new mean machine in a few days. You’re already one step closer – it’s time to follow through.


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