Should you take a two-wheeler loan or personal loan? Compare interest rates

financialexpress.com:

Are you planning to buy a new bike? It is always exciting to purchase a new vehicle with unique features and comfort. However, financial aspects of the purchasing a vehicle is something that cannot be ignored.

When it comes to financing your two-wheeler, there are two common options – personal loans and two-wheeler loans. While both loans offer a way to purchase your dream bike or scooter, they differ in some aspects.

A personal loan is an unsecured loan that can be used for a variety of purposes, including the purchase of a two-wheeler. Personal loans generally offer a higher loan amount, flexible repayment tenure, and competitive interest rates. However, since personal loans are unsecured, they come with higher interest rates in comparison to secured loans.

Two-wheeler loans are a secured loan specifically designed for the purchase of two-wheelers. These loans offer lower interest rates compared to personal loans, flexible repayment options, and easy eligibility criteria. However, the loan amount is generally lower than personal loans.

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Choosing between a personal loan and a two-wheeler loan can be a confusing task. Here are some factors to consider before taking the final decision:

Interest Rate: The interest rate of a personal loan is higher than that of a two-wheeler loan. If you have a good credit score, you may be able to avail lower interest rates on a personal loan. However, if you are looking for the lowest interest rate, then a two-wheeler loan is the better option.

Loan Amount: A two-wheeler loan generally offers a lower loan amount than a personal loan. If you are looking for a high-value loan to finance your two-wheeler, then a