You may be a fresher who just passed out of college and joined a company for your career growth and require a vehicle for your daily commute. Or you may need a two-wheeler for your daily chores, as struggling with the traffic conditions in the country, owning a bike is a blessing. You have options to buy from your pocket or apply for a two-wheeler loan.
Here we will discuss that why one should opt for a two-wheeler loan.
- Increase in purchasing power – When you opt for a bike loan, you have a better buying capacity and can opt for the model with better features and of your choice. While spending your own money, you may have to compromise with the model as per your budget. On the other hand, you have better accessibility when opting for a bike loan.
- Helps reduce your monthly budget – You may just have landed on a new job and are facing a financial crunch. A two-wheeler loan enables you to meet your monthly requirements and will avoid any sudden financial strains. You are free to opt for your comfortable EMIs as per your repayment capacity, making you financially strong.
- Keep your money for emergencies – A bike loan helps to free your savings. You can safeguard your funds in the bank to be utilized for emergencies and personal expenses.
You can also invest your available amount in mutual funds, stocks, insurance, or any other instruments of your likings. The profit you earn will help you in early repayments to get you out of a debt
- It makes you financially discipline – As you have to pay your EMIs regularly, you become more disciplined for your expenses. You develop a habit of calculating your costs beforehand and save funds to have readily available money in the bank all the time. This habit will be more useful in the long run and will make you financially stronger
- Low-interest rates – The high demand for two-wheeler loans has resulted in loan interest rates. Most financial institutions want to attract customers by offering a lower two-wheeler interest rate. Companies are competing with each other with affordable interest rates. Thus you have a choice to opt for a stress-free loan at a reasonable rate on interest to own your dream vehicle
- Ease in overall procedure – The eligibility criteria for a bike loan is quite simple, where some essential documents are needed. When you apply, check for all the required documents and credentials to make your loan procedure hassle-free. Some financial institutions even give facility to apply online so that you can use it within the comfort of your home
- Extra benefits – Some financial institutions tie-up with the dealers to offer additional services to their customers. These may include minimal registration fees, no prepayment levies, free insurance cover, complementary accessories, lower two-wheeler interest rates, more discount on your purchase, and many others
Tips to consider while applying for a two-wheeler loan
You should understand the total procedure of getting a bike loan. A rejected application is frustrating and also leads to lowering your credit (CIBIL) score. Follow the easy tips below to enjoy a successful bike loan
- Calculate your requirement for the total loan amount
- Check your eligibility
- Review your financial score and CIBIL ratings
- You can choose to apply with a Co-applicant in case your financial health is not strong
- Go through all the documents required, and don’t miss a single one
- Make your profile strong with a good credit history and bank statements
More people opt for two-wheeler loans, as they are readily available and provide you financial relief. Over a million people are reported to purchase their two-wheelers with the help of bike loans.
Remember that a one-time investment in a two-wheeler is not worth it as the value of a vehicle degrades with time.