High mileage and maneuverability – that’s next to a superpower on Indian roads. And two-wheeler offers the rider this superpower. Two-wheelers are quickly becoming an essential commodity for the Indian public. To facilitate this growing demand, banks now offer two-wheeler loans that make it even easier for you to buy your favorite bike or scooter.
There are many benefits of availing a two-wheeler loan to buy a bike. Not only is it much more convenient, but it also offers much better financial security.
Here are the top five reasons why a two-wheeler loan is the best option to buy a bike –
Affordable Interest Rates
Most two-wheeler loans have a very low-interest rate. These interest rates will vary depending on your income levels, the price of the bike, and other market variables. But you can easily calculate your expenditure using an online Bike EMI Calculator. Most banks also offer flexible repayment options that would reduce the strain on your monthly EMI. Due to the high demand for bikes, these loans are easily available. You can apply online for a loan and get it approved within a few minutes.
Taking out a two-wheeler loan lets you maintain your liquidity. Paying for the bike with a cash down payment may put undue stress on your finances. With a loan, you can set aside the cash which you may need for emergencies. A well-managed EMI will also let you save and invest some money even while you pay for the bike every month. Banks offer a secure, safe, and risk-free transaction. The government and RBI guidelines ensure that the contract is transparent and binding for all parties.
Banks often offer additional benefits like insurance cover or accidental cover at a discounted rate with a two-wheeler loan. With the extra funds that a two-wheeler loan provides, you can buy the additional accessories and cover the on-road charges. You can also claim depreciation benefits on your two-wheeler and tax benefits on your interest repayments. You can avail of this if you are a self-employed professional or businessman who uses the bike for their business or profession.
Build a Credit Profile
Whenever you take a loan, the bank tracks your financial behavior. Banks use this information to create a credit profile. If you pay your EMI on time, it is reflected in your credit score. A good credit score ensures lower interest rates on future loans you may take. It also affects the premium rates on your insurances. Paying an EMI every month helps you plan your savings and expenses better. This builds financial discipline and responsibility, which will benefit you in the long run.
Afford The Best Bikes
If you are a bike enthusiast, the chances are that you would prefer to buy one of the best bikes out there. But this might not always be possible due to budget constraints. Not everyone has enough savings to buy a high-end bike with a cash down payment. However, a Bike loan gives you that freedom of choice. Even an expensive bike becomes easy to buy with small manageable installments paid over a longer period. With a two-wheeler loan, you can now buy your dream bike without worry.
Even if you do have the funds available to buy the bike, it is a better idea to apply for a two-wheeler loan. It’ll let you pay for the bike at a more leisurely pace and offer you financial security against emergencies. With easy access and low-interest rates, the two-wheeler loan remains the easiest way to buy the bike you want.