Bikes make travelling quick, convenient, and efficient. However, owning a bike can be an expensive ordeal, especially if it is a newer model from a leading brand. Thankfully, a bike loan offers an easy financial solution to purchase a two-wheeler without depleting your savings.
Today, financial institutions offer a lucrative bike loan interest rate, reducing your borrowing costs. Along with this, there are other benefits that make availing a bike loan a great option.
Read on to know the top benefits you can enjoy by availing a bike loan.
Key Advantages of Purchasing a Bike with a Loan
1. Eases Financial Burden
A bike loan can assist you in solving the financial hurdle when you are looking to purchase a bike. When planning to buy a bike, arranging a huge sum of money is not viable for many.
However, with a bike loan, you do not have to stress about making the full payment in a single go. Instead, you can comfortably pay regular monthly instalments over a specific tenure and pay off your loan.
Most lenders, including banks and NBFCs, provide flexible repayment options to help you repay your loan easily without overburdening your finances. You can choose the tenure of your choice and pay affordable instalments when you opt for a loan to purchase a new bike.
2. Enjoy Quick and Easy Approval
The application process for availing a bike loan is simple and straightforward. Most lenders offer an online application facility, providing a hassle-free and efficient application process. Also, these loans require minimal paperwork when compared to other forms of credit.
Once you submit your application, you can get quick approval provided you meet the required eligibility criteria. Post approval, you can submit relevant documents and get your new bike.
Owing to the large and growing demand for bike loans, the loan approval process has improved over the years, resulting in the approval and sanctioning of your loan in just a few days.
3. Helps Improve Credit Score
Since the amount availed with bike loans is generally lesser as compared to personal loans, the interest and EMIs associated with such loans are also less. Lower interest rates and monthly instalments help you avoid missing out on your EMIs and defaulting payments.
This is because your EMIs are divided into smaller, easily affordable options. Also, you can choose a longer loan tenure to make your repayment process easier. A longer bike loan tenure translates to your loan amount being divided into multiple smaller instalments, making it easier for you to repay your bike loan. This helps maintain a healthy credit score.
Maintaining a good credit score is essential as it is a marker of your creditworthiness. If you want to avail another loan in the future, having a good credit score can help you in getting better loans with favourable terms and lower interest rates, along with quick approval.
4. Makes Bike Purchasing Affordable
A bike loan makes purchasing a bike quite affordable due to the low interest rates on these loans. They are considered secured forms of credit because the bike serves as collateral for the loan amount you wish to borrow.
Today, interest rates for bike loans are quite affordable and feasible. These interest rates depend on various factors that banks and NBFCs take into consideration. Some of these factors include the loan amount, loan tenure, income and employment, etc.
Also, you get these loans at lucrative rates due to the growing demand and competition between multiple bike loan lenders.
5. Access to Additional Offers and Benefits
Most banks and NBFCs provide several benefits along with bike loans. These benefits can include pre-approved offers or quick loan options for borrowers with high credit scores and other terms.
Also, many lenders offer customisations and complementary accessories with bike loans. Some lenders also offer special deals on fees, cashback and additional discounts during festivals and holidays.
Another substantial benefit of getting a bike loan from banks or NBFCs is that under the Indian Motor Act, bike loans include an insurance policy for the bike as well as an accidental rider for you.
6. Access to More Bike Options
A bike loan opens the door to multiple bike options and provides higher flexibility in choosing better options. Buying an expensive bike is easier when you opt for a loan as you need not deplete your savings to pay for the bike.
You may also be able to explore more brands and options to choose a bike of higher quality, better features or a more advanced design. Additionally, you can explore umpteen personalised options to add more features, including lights, GPS devices, racks, and other accessories.
Since you are not required to make the full payment in a single go, the bike payment is divided into easily affordable EMIs for your financial convenience.
Given the above benefits of availing a bike loan, it is unsurprising that many across India rely on it to get their dream vehicle. Today, multiple lenders are offering a bike loan with a quick disbursement period and at an affordable cost.
As such, it is crucial to compare the bike loan interest rate and other factors to ensure that you get the best deal. Additionally, planning your repayment is also essential to make your repayment process smooth and stress free.
You can use an EMI calculator to get the monthly repayment amount of your bike loan. This helps you plan your repayment in advance. You can also assess your current debt and income to ensure that the EMI fits into your budget and that you can make timely payments.
This way, you can get the bike you want while keeping your creditworthiness intact for future credits.
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