Planning to buy a two-wheeler? But not sure, as you have a low CIBIL credit score. Well, buying your dream bike may require you to have a good CIBIL credit score if you are planning to buy it using a two wheeler loan. What if you have a low CIBIL credit score? Can you buy a two wheeler if you have a low CIBIL credit score? Let’s find out.
In India, a sizable portion of the population commutes daily on two-wheelers. Due to the difficulty of commuting because of traffic, two-wheelers have recently become one of the most preferred ways of transportation. The demand for two-wheelers has surged, as has the need for two-wheeler loans, as more individuals are seeking speedy and secure transportation.
Two-wheeler loans are available from almost all leading banks and non-banking financial institutions (NBFCs) at competitive interest rates. The procedure for applying for a two-wheeler loan is easy and simple, and the majority of lenders provide applicants with the choice of applying for a loan online. To get a two-wheeler loan at a competitive interest rate, it is necessary to have a decent CIBIL credit score. If your CIBIL score is low, your request for a two-wheeler loan may be denied or the loan may be offered at a high interest rate.
Depending on the lender and other variables like the loan amount, loan term, etc, the CIBIL credit score required for your bike loan may vary.
Why should you Consider Taking out a Loan for Buying a Bike?
There are various reasons for which a person may try to get a bike loan for two-wheeler. Listed below are some of the reasons:
How to Get a Two Wheeler Loan with a Low CIBIL Credit Score?
If you have a low CIBIL credit score and you want to get a two wheeler loan, there are various ways to get one:
It is therefore important to maintain a good CIBIL score. With a good score, you can easily get multiple two wheeler loan offers at competitive interest rates, which will be beneficial for you financially. If you do not have a good CIBIL credit score, work towards improving it before applying for a bike loan.
FAQs Related to Two Wheeler Loan with a Low CIBIL Credit Score
Yes. Your CIBIL credit score is assessed by the lenders and financial institutions when you apply for a bike loan. Better CIBIL score means you will get lower interest rates on your bike loan. Whereas with low CIBIL credit score, you will be offered high interest rate loans as a low score denotes less credibility as a borrower.
A CIBIL credit score of 750 or more can fetch you low interest rates on your two wheeler loan. The processing charge for the two wheeler loan may also lower down if you have a good CIBIL credit score.
Different lenders and financial institutions offer different interest rates on two wheelers. However, you should always compare all the available offers that you are getting for the two wheeler loan if you are someone with a low CIBIL credit score. Also, note that there is a processing fee that you will have to pay for the bike loan. The processing fee of a bike loan also varies from lender to lender.
The CIBIL credit score ranges from 300 to 900. A CIBIL score of 300 is deemed to be poor. It will be really challenging for you to get a bike loan with a CIBIL score of 300. Improve your CIBIL credit score by adopting healthy financial habits and apply for a bike loan when your credit score improves to get better offers.