What factors influence the interest rate on a two-wheeler loan for salaried individuals?

Here are some key factors that can influence the interest rate on a two-wheeler loan for salaried individuals:

• Credit score: Applicants with higher credit scores (usually 750 and above) can get lower interest rates. Those with poor credit scores may get higher interest rates or even rejection.
• Income: The higher the monthly income, the lower the interest rate offered, as it indicates better repayment capability.
• Employer profile: Interest rates are usually lower for applicants working with reputed MNCs, public sector undertakings, etc. than for smaller private firms.
• Location: Interest rates may vary based on the city/state of residence due to different credit policies.
• Loan amount and tenure: Higher loan amounts and longer tenures involve higher risk for lenders and, hence, may have higher interest rates.
• Financial institute type: Interest rates can vary significantly between banks, Non-banking Financial Companies (NBFCs) and private loan providers. NBFCs often charge higher rates.
• Co-applicant: Adding a co-applicant with a higher income may bring down the interest rate offered.
• Special offers: Loan providers provide promotional offers during festivals or tie-ups, leading to lower interest rate deals.
• Repayment capacity: Applicants with higher disposable income after Equated Monthly Instalment (EMI) spending may get better rates.
• Existing relationship: Existing customers may enjoy lower rates compared to new applicants.