One of the first things you need to know when finalising a two wheeler loan is the interest rate. This can be a game changer, as it will show you the EMI amount and how it affects your monthly budget. The bike loan interest rate by Muthoot Capital starts from as low as 0.99%*.
The interest rate depends on the credit history you have. The EMI you pay includes the principal amount of the loan along with the interest rate. So over the entire tenure, even a small difference in the interest rate could mean a huge difference.
Types of Two wheeler Loan and Interest Benefits
There are different types of 2 wheeler loan interest rates that are available with Muthoot Capital Services Ltd. The lowest bike loan interest rate can also lower your monthly outgo. This can positively impact your budget.
No Income Based loans - There is no requirement of income proof to avail this loan.
Income Based Loans - Under this scheme, you are entitled to a loan, based on the proof of your income.
To avail the loan, you need to meet the eligibility criteria and provide the documents as per the requirements. Contact our customer care executive at 1800 102 1616 to know more.
Factors that Impact Two-wheeler Loan Interest Rate
The two wheeler loan interest rate is a major consideration when you opt for a loan. You need to compare and consider the interest component before you finalize the deal. Once you are ready, apply for the lowest bike loan interest rate by clicking on the ”Apply Now” icon on Muthoot Capital site orcall Us at 1800 102 1616. Some factors play an important role in determining the rate of interest for the bike finance you are looking for.
The type of vehicle you are planning to buy is the main consideration when looking for a loan. The interest varies if you are looking to buy a moped, a motorbike, a scooter or a high-performance machine.
The nature of employment also has a bearing on the interest rate of the two wheeler loan. A salary drawing individual has a higher chance of getting the loan in comparison to a non-working professional as the income source is steady and credible. The rate of interest is generally lower for a salaried individual.
The repayment capacity of the borrower is also ascertained before the loan is sanctioned. The loan amount is fixed as per the EMI repayment capacity of the individual after provisions for the regular expenses are accounted for. This is also referred to as the LTV or Loan to Value ratio calculation.
Two Wheeler Loan Miscellaneous Charges
There are a few other charges that are a part of a 2 wheeler loan interest rate. These common chargesapplicable as a part of the interest payable for a bike loan are as follows:
A processing charge is a one-time amount that you will be required to pay when you apply for a loan. It is generally a percentage of the total loan amount. A lower processing fee means you can enjoy additional benefits apart from the lowest bike loan interest rate.
A foreclosure charge comes into play if the two wheeler loan is repaid before the tenure is over. The foreclosure amount in a two-wheeler loan is nominal. Reach out to our customer care executive for the details.
For a detailed list of charges applicable to you walk into any Muthoot Fincorp branch or Call Us at 1800 102 1616.
The two major charges for financing a two-wheeler include - interest rate and processing fees/documentation charges. The processing charge is a one-time fee applicable for processing the loan. It varies from 0.5-5% of the loan amount depending upon various schemes. Processing charges are different from the scooter or bike loan interest rate. Other charges include prepayment or pre-closure charges and taxes applicable on the services offered. Contact our representative to get details related to bike finance interest rate.
Muthoot Capital Services Ltd. offers one of the lowest bike finance interest rate starting at 0.99% per annum. Reach out to our representative to find out the best interest rate available for you. However, you should be aware that the two-wheeler loan interest rate depends on many factors which are discussed in the next FAQ.
The main factors that affect the two-wheeler loan interest rate are the loan amount, loan tenure, employment history and credit history of the borrower. If you have a healthy credit score, you will be charged a lower interest rate.
You can use our EMI calculator to compare the two-wheeler loan interest rates. The easy-to-use and free tool allows you to know the EMI you will pay based on the loan amount, loan tenure and the bike finance interest rate applicable. Once you have input all the details, your EMI is calculated instantly. Change the loan amount and tenure to compare the interest rate and decide the EMI (approximate) you are most comfortable paying.
The interest rate scheme for women at Muthoot Capital offers one of the interest rate starting as low as 0.99% per annum. Our customer care representative can help women complete the process of applying for a loan with ease. Contact 1800 102 1616 to know more of the loan schemes for women.