Motorcycle Loan Finance Tips
With the increase in larger vehicles on the road, traffic is increasing, which has become a significant concern in all major cities. In such cases, the importance of two-wheelers increases several times. They are cheap to maintain and can be operated daily, but they are also easy to navigate through the traffic. It is not surprising that India is one of the biggest markets for two-wheelers in the world. And with the increase in fuel prices, they tend to be more economical as compared to four-wheelers.
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While buying a two-wheeler makes a lot more sense in saving time and money, people get confused about whether to buy it right away or go for bike finance. According to many people, purchasing a vehicle through a one-time payment is not hassle-free. Still, it is also the cheapest option, and you won’t have to worry about extra paperwork, interest rates, or anything of that sort.
Benefits of Bike Finance
However, there are many benefits of bike finance, especially in the long term. Some of those benefits are given below.
1. A two-wheeler loan is relatively small compared to other loans, which makes it easier to pay and boosts your credit score. Bike loans are much easier to get, repay and helps in building a positive financial history.
2. Taking a loan encourages you to manage your finances better. Even though you won’t be making any large payment at a given time, you will have to pay a small amount of monthly EMI’s. Knowing that there will be a monthly obligation, you will be spending your money wisely and more carefully.
3. The financing option also opens up a more comprehensive range of two-wheelers from different prices. You can buy an expensive one, and you will only have to pay monthly EMI’s, which is much easier than paying a large amount of money at a time. An outright purchase has a fixed budget, limiting your choice, but you can stretch your budget and buy an expensive bike or scooter with the help of financing.
Some features of two-wheeler loan
Getting a bike loan is similar to getting any other type of loan. You only have to fulfill the documentation, age, and income criteria. Given below are a few things one must keep in mind before applying for bike finance.
1. You need an address and identity proof, such as passport, aadhar card, pan card, etc. and valid income proof for the past six months. Many lenders approve these types of loans within one day, making it easier and quicker to process.
2. Two-wheeler loan is available for both salaried and self-employed individuals. It also gives you multiple repayment options. You should be a salaried person for six months or should be running your own business for one year.
3. Bike finance comes with the flexibility in tenure. You can pay your whole loan amount in 6 months.
Things you should know before getting a bike loan
If you are thinking of getting a two-wheeler loan, you should know a few things before choosing your lender and other aspects of loans.
1. Collateral: A bike loan is a type of secured loan, so in case you failed in repaying your loan, then the lenders have the right to repose the vehicle and recover their amount.
2. Duration of loan: The duration of loans can be as short as six months. The interest rates are not affected by the loan period. But in shorter loan tenure, you will have to pay a higher amount each month. However, if you go with the higher term, you will have to pay more, overall, for the same model. When deciding your loan duration, always keep your monthly budget in mind so that EMI’s does not disturb your budget.
3. Beware of attractive offers: Many times, lenders will advertise super attractive low-interest offers. Lenders have obligations to offer the advertised rate to 51% of their customers.
Conclusion:
Having a two-wheeler these days is a must. Before getting bike finance, always look around for the best offers that suit your needs. Once you have gone through all these points, you are ready to start exploring options and buy the vehicle you need.