Is it Better to Go for a Loan to Buy a Two-wheeler
March 04, 2019
Be it visiting the nearby market to buy groceries, daily commute, or travelling through the city, two-wheelers are now the most practical mode of transport. The popularity of two-wheelers in India is as such that almost every household now has at least one two-wheeler. An increasing number of buyers now take a bike loan for purchasing a two-wheeler due to the number of benefits it offers.
If you too are planning to purchase your dream bike, here are some reasons why you should prefer a loan against buying it with your own money-
1. Reduced Financial Burden
Needless to say, the most significant advantage of taking a two-wheeler loan is the reduced financial burden. Purchasing the bike with your own money can put stress on your financial health.
With a loan, you only need to make a small down payment while the lender would pay the rest of the money. You can then easily repay the loan in easy monthly instalments. Moreover, some of the banks now also offer zero down payment bike loans.
2. Low-Interest Rate
Thanks to the rising popularity of two-wheelers in India, the interest rate on bike loans have fallen considerably in the past few years. The interest rate can range from 10%-25% depending on the lender you consider for the loan.
Moreover, factors such as good CIBIL score and existing relationship with the lender can also help you get a cheaper deal.
3. Improve the CIBIL Score
Your CIBIL score or credit score is now a primary consideration for the lenders. If you are looking for a loan such as a home loan or personal loan, the lender will only approve your loan application if you have a high CIBIL score.
As the amount of loan to buy a two-wheeler is generally low, it is easier to repay this loan on time. This helps in improving your CIBIL score and makes you more eligible for loans you might take in the future.
4. Online Two-Wheeler Loan
To offer enhanced convenience to the borrowers, many top lenders now allow you to avail two-wheeler loan online. This eliminates the need for the borrowers to visit the lender personally to apply for the loan.
From submitting the loan application, documentation, to the approval of the loan, everything is done online to help borrowers save time and efforts.
5. Reduced Eligibility Requirements
Every lender has its own eligibility requirements based on which it approves and rejects loan applications. A bank loan for bike has minimum eligibility requirements which even an individual who has just started working can easily fulfil.
This makes two-wheeler loans more accessible to people across every income range.
Should You Take a Loan for Purchasing a Two-Wheeler?
As you can see, several reasons make a loan to purchase a two-wheeler an excellent choice. With attractive interest rates, flexible repayment tenure, and a host of other benefits, the loan is the easiest way to fulfil your dream of purchasing a two-wheeler.
Consider these benefits if you are planning to purchase a two-wheeler to make the right decision.
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