Are you considering purchasing your dream bike and financing it using a two wheeler loan? While you can easily get a two-wheeler loan, the interest rate is a concern for many people. However, there are a lot of different factors that have an impact on the interest rates of the two-wheeler loan. So, in this blog, we will help you understand these factors that affect the two-wheeler loan interest rates. Read on.

Two wheeler loan interest rates

Interest rates are affected by many different economic factors. In addition, the interest rates on two-wheeler loans also fluctuate continuously and differ from bank to bank. Depending on your particular case, you can get a two-wheeler interest rate quote of anywhere between 6% and 28% per annum. However, the interest rate you will be able to get will depend on many factors. Let’s explore some of them in the next section.

Factors that will impact your two-wheeler loan’s interest rate

Some of the factors that will impact your two-wheeler loan interest rate are as follows:

Credit Score

It’s the first thing any lender will check before approving your loan application and quoting you an interest rate. Higher the credit score, the lower the loan’s interest rate. You can get a much lower interest rate quote, if you have a good credit score. However, this doesn’t imply that a person with a lower credit score can’t get a two-wheeler loan. You can still get the loan approved, but you will need to pay a higher interest rate.

Employment Type

When approving your loan, the lenders also check whether you are a salaried or self-employed individual as the criteria for both are different. Salaried individuals need to have a minimum gross salary of Rs. 10,000 per month to get a loan whereas when it comes to self-employed individuals, they need to have a stable business experience for 3 years.

Down payment

Down payment is the portion of the cost of the two-wheeler that you pay upfront. The higher the down payment you are willing to make, the lower will be your interest rate. So, if you can make a larger down payment, consider bringing down your interest costs.

How to calculate two-wheeler loan EMI?

EMI is the monthly payment to repay your loan. Calculating your two-wheeler loan EMI in different scenarios will let you plan better. So, it makes sense to learn how to calculate it yourself. Don’t worry! There are many EMI calculators out there that you can use to make the calculations for you. Here’s one for your reference. The idea here is to give you a sense of what factors decide your EMI.

So, your loan’s EMI is a function of 3 things: the principal, the tenure, and the interest rate. Once the interest rate is figured out, you can play around with the principal and tenure to get a monthly payment that best suits you. Remember that the higher the tenure, the lower the EMI, but the higher the total interest cost.

Bottom line

By now, you should have a good sense of what all factors decide your two-wheeler loan interest rate. If you wish to get an exact quote, apply for a two-wheeler loan today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

When faced with a financial crunch, the first thought that people come across is how to overcome the situation. While you always have the option to borrow funds from your friends or family, this might lead to problems in future. A safe way out is to apply for a Loan Against Property.

Considered one of the most secured loan options, LAP has the lowest interest rates. By applying for LAP, you can use the locked value in the property without vacating the premises. Not just this, LAP also offers many other advantages. Read the article to find out why you need to opt for LAP.

What is a loan against property?

As the name suggests, when you opt for LAP, you put your residential or commercial property as collateral and a get certain amount of money as a loan. These loans are secured by your property, which makes you eligible to get a higher amount from the lender than unsecured loans.

In case you fail to repay your loan, the lender has the right to sell off your property to recover their money. So, make sure to get a deal that doesn’t become a major financial burden.

Why loan against property is a good idea?

A loan against property is a great idea when you need large sums of money for the following reasons:

Lower interest rates

A LAP is a secured loan, which is why, the interest rates are low and tenure is longer as compared to unsecured loans. The monthly repayment amount is manageable and the loan doesn’t end up becoming a financial burden.

Unlock the hidden value of your property

When you take a Loan against Property, you do not have to quit the occupancy of your property or sell it. It is an ideal way of unlocking that hidden value in your property.

Quick and easy process

As already discussed, LAP is a secured loan, so lenders are more than happy to disburse your loan amount faster. This makes loans against property a quick and easy way to finance large sums.

Last words

So, to sum it all up, a loan against property is indeed a great idea when your financial requirement is large and you need money quickly. If you are looking for a loan against property at attractive interest rates, check out IndusInd Bank’s loans against property right here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Daily traffic in the city is practically unavoidable. No matter who you are and what vehicle you use for your commutes, you are bound to experience traffic, in some form or other. While it may be hard to escape traffic queues in the city, with FASTag you could zoom through a toll plaza without waiting behind dozens of other vehicles. By attaching this tag to your vehicle, you can pass through toll booths while driving across national highways. Its Radio Frequency Identification (RFID) technology enables the toll booth to recognise the vehicle and apply charges accordingly.

How does it work?

Acquiring and using FASTag can be pretty straightforward. You can get a FASTag at four places – at select toll booths, on your bank’s website (like https://fastag.indusind.com) or branch, on the “MyFASTag” app, or on an e-commerce platform like Amazon. For the registration process, you would need KYC documents (originals and photocopies), passport-size photographs, and vehicle documents such as a Registration Certificate.

How to use FASTag?

Paste FASTag on your windshield, face down. When you pass a NETC FASTag-enabled tollbooth, a scanner uses RFID to scan your FASTag automatically. The amount gets deducted from your wallet/account directly and you are notified regarding the same via SMS.

You can get FASTag recharge online with IndusInd bank, which has many other features and benefits that could simplify your life.

FASTag features for you

• Its one-time joining fee and re-issuance fee are INR 100, including GST charges
• A security deposit ranging from INR 200-500, depending on the vehicle, is compulsory
• FASTag is issued per vehicle regardless of ownership
• Once you get your FASTag, it has a validity period of 5 years
• You can get FASTag recharge online through net banking, UPI, BBPS or credit/debit cards
• FASTag is available in around 360 toll booths across National and State Highways

FASTag benefits for you

• Every time money is deducted through FASTag at toll plazas, you are notified about the location and the amount via SMS.
• FASTag can be recharged online
• You can save on fuel charges and time as your waiting period gets reduced
• Digital payment and better traffic management make it overall environmentally friendly.

Conclusion

Since January 15, 2020, FASTag has become mandatory in India. Offering smooth and hassle-free commutes across national highways, FASTag can make your travels even more convenient. With IndusInd Bank’s Auto Top-Up Functionality & a linked IndusInd Bank account, when your tag approaches a low balance, it automatically funds itself from your account without requiring your intervention. Apply for IndusInd FASTag today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.