As the purchasing capacity of consumers is increasing so is the demand for owning luxury items. A two wheeler though, is no more a luxury but a necessity. Having your own vehicle gives you the freedom of commuting anywhere anytime. A two wheeler eliminates the hassle of waiting in long queues for buses and trains, hiring a cab for the daily commute at work etc.
Buying a two wheeler is an economical option. It is cheaper than owning a car and also has low maintenance. You can opt for a smarter way to finance your two wheeler rather than spending all your savings on it. You can avail a two wheeler loan.
Here’s why you should take a two wheeler loan to finance your bike or scooter.
Your bike or scooter is not hypothecated with the Bank or NBFC when you take a two wheeler loan. Hence you do not need to submit your hypothecation certificate.
Affordable Interest Rates
Two wheeler loan interest rates are affordable contrary to the belief that they have high-interest rates. The rates depend upon your lender, bike model, employment history and your income range.
Minimal Down Payment
A two wheeler loan also known as a bike loan for bikes requires you to pay a minimum down payment. This increases your loan to value ratio. Banks and NBFCs offer financing up to 90% of the vehicle amount. So you only have to pay the 10% as down payment.
Less Paper Work
As the process is digitized, there is less paperwork.
The approval process for a two wheeler loan is faster these days. If you meet the required eligibility criteria, then you have high chances of a quick approval which can sometimes happen on the spot too.
Low Prepayment Charges
If you have a sudden inflow of cash, you can prepay the loan. The prepayment charges are low compared to other financial options.
You can apply for a two wheeler loan online itself. Many lenders have a mobile application too. All you need is a good internet connection and you can avail a loan right at your fingertips. You can also check your bike loan emi when you are at the dealer’s shop, deciding which bike to buy. The bike loan emi calculator is available online on the lender’s website.
Affordable for Low-Income Individuals
Even if you have a low annual income you can still avail a two wheeler loan. Many lenders offer two wheeler loans to low-income group individuals and also individuals with a low credit score.
Choose a two wheeler loan instead of spending your savings on it. These savings can be used in times of a financial crunch or an emergency. So do not spend them and finance your two wheeler with a loan.