Having a two-wheeler of your own gives a sense of liberty and the ability to commute with independence. But, the question that faces most people is: How can I afford a bike of my choice? With the help of a bike loan, you can be the proud owner of a brand-new bike. Two-wheeler loans are considered one of the fastest and simplest ways through which you can get a bike without paying the entire amount upfront.
Bike loan is always a preferred means of finance even for those individuals who are purchasing a vehicle for the first time.
And, in this post, we are focusing on how you can avail the many benefits of a bike loan:
Table of Contents
1. Excellent finance:
Lenders offer financing up to 95% of the bike amount. It means that you have to pay only 5% of the amount as a downpayment to the lenders. It allows you to purchase a bike of your choice and repay the amount in easy EMIs over a period of many months. Use an EMI calculator to know the monthly installment and how it suits your budget so that it is advantageous to you in the long run.
2. Fast sanctioning of loans:
Many lenders have direct tie-ups with the dealers making sanction of the loan fast and easy. You can walk into a showroom with the required documents and get their dream bike. So, make sure you know the requirements before you go to the showroom to save time and effort.
3. Flexible period:
The period of a bike loan is up to five years. It ensures lower EMI and helps customers to maintain a monthly budget easily. Now, choose a tenure you are comfortable with so that the loan is never a burden.
4. No credit score required:
Most loans require a credit score, but many finance companies do not require a credit loan when sanctioning a bike loan. Some lenders are offering loans to individuals with no credit history who can apply for a bike loan. Furthermore, a two-wheeler loan can help customers create a credit history, making it easier for them to get other loans in the future. Also, the amount of EMI on these loans is usually lower, reducing the chances of a default.
5. Tax and depreciation:
If you are self-employed, you can claim your interest repayments and depreciation benefits on your two-wheeler. It is only applicable for the vehicles which are being used for business purposes. For other expenses like insurance, fuel, and maintenance, the loan interest amount is allowed as a deduction from your profits.
6. Low-interest rates:
The bike loan interest rates can vary from 9.5% per annum to 15% per annum. It is very important to look for the lowest interest rate so that the monthly installment is not a burden.
7. All-inclusive bike loans:
Nowadays, two-wheeler loans not only cover the cost of the bike but in some cases, also cover other costs like vehicle accessories, insurance payments, and registration charges.
Conclusion:
There are many benefits that one can avail of by opting for a bike loan. But, never opt for the first loan that you are offered. You should research the various parameters of the loan and understand the commitment you are making before signing any loan document. Compare different lenders to get the best loan suiting your unique requirements.
