India is currently the largest two-wheeler market in the world, and more than 15 million units were sold in 2021. According to the National Family Health Survey (NFHS)-5, nearly 54 percent of Indian households still rely on scooters and motorcycles for daily commutes. Moreover, there are more than 210 million registered two-wheelers in the country. These statistics highlight the average Indian consumer’s inclination towards buying two-wheelers instead of cars. Furthermore, two-wheelers are easier to manoeuvre, making them conducive for busy and crowded Indian roads.
Another aspect that makes them more attractive than four-wheelers is their price tag. Unlike a four-wheeler, you can purchase a bike or a scooter without spending an exorbitant amount. Premium motorcycles, such as sports bikes or bullets, cost less than ₹3 Lakhs. Additionally, two-wheelers are fuel-efficient and can be ridden on the most challenging terrains because of their incredible suspensions. Today, you can easily afford a two-wheeler by applying for a bike loan and repaying the amount in affordable EMIs.
Why should you buy a bike on EMI?
Purchasing a two-wheeler can be an expensive proposition if you don’t apply for a bike loan. Instead of paying a lump-sum amount at the outset, you can pay for the two-wheeler in bite-sized instalments. EMIs allow you to save your corpus and pay the monthly instalment using your salary. Thus, you won’t have to dig into your savings, and you can own your desired two-wheeler by making certain adjustments to your monthly expenditure and budget.
Additionally, banks, NBFCs and captive financiers provide loan tenures ranging from 1 year to 7 years. Thus, by choosing a convenient repayment period, you can opt for an EMI amount that won’t let you feel the pocket pinch.
Benefits of getting a bike loan
There are numerous advantages of getting a bike loan, and a few of them are highlighted below.
Competitive interest rates
You can compare the interest rates offered by different lenders and choose a lender offering the most competitive interest rates.
Get up to 100% funding of the on-road price
Depending on the lending entity, you can avail of up to 100% financing of the on-road price of the two-wheeler. Lenders typically provide loans covering 70-100% of the vehicle's on-road price. If you have to make a down payment, it will usually cover part of the two-wheeler’s cost, RTO and insurance charges.
Ease of repayment
You can pay low-cost EMIs that won’t hurt your pockets by choosing a longer tenure.
Improve your credit profile
By paying the EMIs on time, you can build your credit score. This will help you improve your credit profile and make you a responsible borrower.
Purchasing a two-wheeler on EMI
After knowing the benefits of getting a bike loan to finance your two-wheeler, you can apply for a bike loan. Here is how you can purchase a two-wheeler loan on EMIs this year without facing budget constraints.
Use the bike EMI calculator
The first step involves understanding your repayment capacity. It is wise to have a budget in place and know how much you can pay every month without facing any financial hurdles. You can accomplish this task by using a bike EMI calculator, which you can find on lenders’ websites and online aggregators’ platforms.
You have to enter the loan amount, probable interest rate and loan tenure in the bike EMI calculator. You can keep changing the variables until you find the EMI amount you are most comfortable paying every month.
Know if you are eligible
Next, check the eligibility criteria and if you meet them. These differ from one lending entity to another; however, the common criteria include the following.
Age: You should be between 21 and 65 years old
Credit score: You should have a decent credit score (750 for certain lenders)
Employment status: You must be employed; you can either be a salaried individual or self-employed
Minimum income: You should earn at least ₹10,000 every month (₹15,000 for certain lenders)
Residence: You should be an Indian citizen and must be residing in the same city for at least one year
Keep the documents ready
You must also know the documents required to apply for the bike loan, and keep the documents ready. These include your ID proof (Passport, Aadhaar Card, PAN Card etc.), address proof (Aadhaar Card, Voter ID, utility bills etc.), proof of employment (offer letter and employment certificate if you are a salaried individual, or latest ITR and company details if you are self-employed) and bank statement for the previous six months.
Apply for the bike loan online
Finally, you can apply for the bike loan and opt for the EMI amount that comes close to the EMI you calculated using the bike EMI calculator. Here is how you can apply for the two-wheeler loan online.
Step 1: Visit the lender’s website
Step 2: Click on ‘Apply Now’ and fill out the form
Step 3: Provide your personal and employment details
Step 4: Choose your desired bike model and the total cost of the two-wheeler
Step 5: Upload your KYC documents if asked
Step 6: Submit the online form
Step 7: A representative from the lending institution will get in touch with you to talk about the interest rate, loan amount, repayment period etc.
Once you select your repayment terms, your application will be verified and processed. The lender will then sanction the amount, and you can use the bike loan to purchase your new two-wheeler.
Lenders such as Bajaj Markets provide up to 100% funding of the two-wheeler’s on-road price, which makes it extremely easy to afford the bike. You can pay the nominal EMI amount every month without worrying about exceeding your budget.
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