What is the interest rate on two-wheeler loans for salaried individuals?

When considering two-wheeler loans for salaried individuals, the interest rate is influenced by several factors. While the exact rate may vary depending on the loan providers' policies, the following key points typically describe the nature of these loans:

• The starting interest rate is typically 8% or higher per year, depending on the financial institution. Rates vary between banks and Non-banking Finance Companies (NBFCs).
• Loan providers prefer salaried customers because of their regular monthly income, which supports repayment ability. This can lead to reasonable interest rates.
• Applicants with higher credit scores are more likely to qualify for lower interest rates. A good repayment history is also viewed positively.
• Choosing a shorter loan tenure of 1-2 years can lead to slightly lower interest rates. Lenders often view shorter terms as less risky, which can result in more favourable borrowing costs.
• Different loan providers have policies for salaried applicants that affect the interest rates offered, so rates can vary.
• Making a large down payment lowers the loan amount required, which may improve interest rates usually.
• Loan providers consider employers with good reputation and applicants with long job stability and low risk, which supports lower rates.
• Comparing interest rates from multiple financial institutions is advisable before finalising the loan. Also, it is important to consider extra charges.
• Applicants should evaluate repayment capability based on income and obligations before accepting an interest rate.