In our buzzing cities, two-wheelers are an economical and popular choice. That is because they are not only less expensive than other vehicles, but easy to maintain. Two-wheelers make it extremely convenient to glide through traffic without any hassle.
The two-wheeler market continues to grow with the introduction of new bikes with more desirable features, designs, and capacity. But paying for a two-wheeler in one go may not be a smart option. So, it’s better to avail a 2 wheeler loan to purchase any bike you desire.
Two-wheeler loans are regarded to be the most manageable and the quickest way to buy your dream bike. It befits customers of all age groups, and it can be easily paid in the form of monthly instalments.
So, here’ a list of some solid benefits of 2 wheeler loan that everyone must know-
1. Super-Fast Application Process
With digitisation in the financial sector, the loan application process has become fast. Now, you can easily apply for bike finance online without having to visit the lender in person. The two-wheeler loan also gets disbursed quickly. You will get the loan amount in your account within a couple of days. For the online application, you need to fill the application form available on the lender’s website and submit the required documents without standing in a queue.
2. Keep Your Savings Untouched:
Bike finance gives you an option to keep your savings for other purposes. You can get complete financing for your brand new bike without having to invest all your savings at once.
3. On-the-spot Loan Sanction:
Most of the lenders have direct tie-ups with the dealers. So, one can walk in a showroom and purchase a two-wheeler. The loan is sanctioned to you on the spot, which saves your time and effort both.
4. Attractive interest rates:
The interest rate for bike finance range between 10% – 25%. It also depends on multiple factors like the borrower’s annual income, CIBIL score, and the bike’s market and resale value. Lenders give the option to choose between fixed and floating interest rate. In fact, in the last few years, the interest rates have reduced because of substantial competition between lending institutions.
5. Flexible Tenure:
The 2 wheeler loan offers a flexible tenure to the borrowers. You can choose a loan tenure between 12 to 60 months. It gives you the benefit of repaying the loan at your convenience. So, you needn’t worry about the monthly budget as bike finance will never give you any financial stress.
6. Easy Way to Improve Credit Scores:
Youngsters can kickstart their CIBIL score by quickly repaying the two-wheeler loan as the chance of defaulting the loan is too low. So, it’s a great way to develop a good credit score to avail other loans in future.
7. All-inclusive loan amounts:
The loan is granted for the total cost of buying a two-wheeler which covers costs linked with vehicle accessories, insurance payment, and registration charges. It becomes profitable for customers as they can easily opt for additional security measures and fit safety mechanisms on their bike. It turns out to be a smarter deal, as the customer gets finance for the vehicle as well as other necessary expenses.
8. Complete Ownership:
Once you have bought the bike through a two-wheeler loan, the lender does not have any right over your purchase, and you have complete ownership over the vehicle.
9. Lower Income Criteria:
As compared to any other loan, lenders grant two-wheeler loans to individuals with lower annual income. An individual earning a yearly income of Rs 40,000 can also avail bike finance.
10. Eligibility Criteria:
All lenders have a pre-determined list of eligibility criteria. Borrowers who meet all the aspects of such a list of criteria can only avail the loan. These criteria constitute age limit, income, occupation, etc. The eligibility criteria are easy to meet and do not require any tedious documentation.
11. No Prepayment Charges:
It often happens that at times when we have extra cash, we intend to repay our loan. However, certain loans impose a penalty charge when the loan is fully paid before the specified tenure. In the case of 2 wheeler loans and used car loan, prepayment charges are not applicable by most lenders. One can quickly repay the loan even before the tenure after the regular payment of at least six monthly instalments.
The two-wheeler industry is increasing, so lenders are granting loans at easy terms and conditions. Bike loans have various benefits, as explained above, and it helps to fulfil everyone’s dream of owning a two-wheeler.