These days, loans are easily available from banks as well as non-banking financial companies (NBFCs). Flexible Equated Monthly Installments (EMIs) and affordable interest rates entice individuals to opt for loans. Easy financial availability has resulted in more people purchasing things that may otherwise be difficult to buy.
However, you must remember the most important rule before you apply for a loan. You must not avail of a loan only because it is easily available from financial institutions. Most experts recommend that the total EMI you pay must not exceed 50% of your income.
One loan that could be often availed easily is a bike loan. The interest rate is not very high, thereby making it more affordable for you. If you want to purchase a motorcycle or scooter without making a huge upfront payment, choosing such a loanis recommended.
Here are fivebenefits of availing a two-wheeler loan:
- Lower down payment
Some lenders offer as much as 95% of the on-the-road price of the bike. This reduces the amount you need to pay through your personal resources as down payment. Therefore, the initial investment required is a small amount.
- Extended loan tenure
Lenders provide such loans for a period of one to five years. Longer loan tenure makes purchasing a bike on EMI easier since the amount may be repaid without facing any financial difficulties.
- Quick and simple procedure
Financial institutions require minimum documentation when you apply for such loans. Furthermore, the entire procedure from loan application to approval and disbursement is completed in a few days. This enables you to ride away on your bike without any delays.
- Source of income
Several urban commuters opt for bike taxis to commute from one location to another. They do not mind riding pillion to save time during heavy traffic. You may choose to use your motorcycle as a taxi, which would allow you to earn and reduce your EMI burden through an additional source of income.
- Improvement in credit history
If you have never applied for a loan, choosing this financial product is beneficial in developing your credit history. Credit rating agencies like CIBIL (Credit Information Bureau (India) Limited) maintain records for all borrowers in the country. This credit information is available to all lenders across India. Lenders rely on credit score to determine the rate of interest and other terms and conditions on your future loan applications. A high credit score will enable you to procure affordable and competitive bike loan interest rates. The credit score further improves when you pay the EMI on such loans without any delays.
Most financial institutions offer attractive two-wheeler loan interest rates and terms and conditions. However, before you apply for such a loan, it is recommended you check the eligibility criteria. In addition to meeting the eligibility criteria, you need to submit identity proof, date of birth, residential address proof, and bank account statements to apply for such loans. Furthermore, comparing different loan offerings by various institutions before proceeding with the application will help make an informed decision.
Choosing to purchase a two-wheeler offers you peace of mindand freedom since you do not have to depend on public transportation for thedaily commute. As a result, you may save time and increase your efficiency at work. With the increasing availability of loans at affordable rates, owning a two-wheeler has never been so easy. So, apply for a loan today and live a hassle-free life.