6 Reasons to buy a Two-Wheeler with a Personal Loan

Buying a two-wheeler vehicle is a necessity considering the increasing traffic on our roads and crowds on our streets. Public convenience vehicles like metro trains and motor buses are full of people and luggage, thus, leaving very little room for movement. Two-wheeler vehicles serve best to ease transportation and movement from one place to another.

Buying a two-wheeler involves a fair amount of money. This means that either you must save for a prolonged period or pull out money from your savings to be able to pay for it. Alternatively, you may also opt for a personal loan considering its unsecured nature. Unlike other loans that require their intended borrowers to submit any collateral or furnish any security to secure the loan amount, you may opt for a personal loan to avoid any such hassle.

Why Take Personal Loan for Your Two-wheeler

If you are still unsure about taking a personal loan to pay for your two-wheeled vehicle, understanding the following benefits can help. These include:

• Full financing of the vehicle: There is a wide range of choice available for those looking to buy a new two-wheeler vehicle. Most lenders agree to finance only 80 per cent of the vehicle’s cost. A Personal Loan allows 100 per cent financing of the vehicle’s market price. This way, you do not have to worry about spending from your pocket to make the down payment of your bike or vehicle.
• Online availability: You can choose to rush to the nearest branch of your lender to submit your loan application. Alternatively, you may log on to the lender’s website or download their mobile application to apply for the loan. A loan application is now possible and easy with the click of a button, thanks to the increasing digital pervasiveness that has prompted lenders to make their presence felt on the web. All you must do is to fill in the required loan amount, submit documents showing proof of identity and address, your choice of two-wheeler vehicle, price of the vehicle, estimated loan tenure and click “Submit”. Within a few hours, your lender will notify you about the loan status and details of its approval.
• Affordability of the loans: Personal loans are affordable, thanks to the reasonable personal loan rates that lending institutions offer. Compared to two-wheeler loans, the interest rates on personal loans are lower, thus, explaining the cost-effective nature of these loans. Also, lenders decide the interest rates based on the CIBIL credit score of their customers. Good credit history can be an effective measure to seek personal loans at much lower rates. Most lenders inquire about their customer’s details about their running loans, loan repayment history, income, the value of investments made, two-wheeler specifications and age of the vehicle to determine their credit score and lend the amount accordingly.
• Choice of loan tenure: This is important as a smaller tenure for loan repayment is always preferred. You may choose a loan repayment period somewhere between six months and five years. Though many people opt for a longer tenure so that they are required to pay small equated monthly instalments (EMIs), it hurts in the long run because they end up paying an increased amount in interest. Smaller tenures mean that your EMIs are high, thus, allowing you to repay the loan quickly.
• Eligibility criteria: Anyone and everyone can approach a lender to seek personal loans. There is no specific personal loan eligibility criteria, which leaves the door open to all intended borrowers. Also, the high-income criterion bars from applying for certain loans, thus, leaving you to apply for personal loans only. Since lenders do not inquire about the purpose for which you are seeking the loan, you can use the amount towards any activity.
• Instant approval: With so many lending institutions looking to increase their customer base, immediate loan approval and timely disbursal have become the norm. Post application for the loan amount and submission of necessary details, lenders mostly take a few hours to verify your details and process the loan application. Once the loan amount is approved, the money is credited to your account within a few minutes of loan approval. Those applying for pre-approved loans benefit more as they are intimated of the loan sanctions within a few minutes.