Whether it is navigating congested Indian roads or gliding through peak-hour traffic, two-wheelers can do it all with utmost ease. Given the low-maintenance cost of a two-wheeler, it’s better resale value and ease of use, bike sales have consistently risen over the last few decades. The popularity and sales of two-wheelers have also benefited from the easy availability of financing options. With bike loans easily available to the common man, purchasing a bike has become less of a fiscal burden.
While a significant proportion of Indians are opting for bike loans when purchasing a two-wheeler, some still remain on the fence about doing so. This is mainly because they remain unaware of the benefits associated with such loans. If you happen to be one of them, here’s a list of the top 5 benefits you can enjoy by opting for a bike loan in India.
You Can Protect Your Savings Reserve
Buying a two-wheeler by paying the entire amount upfront can cause a significant dent in your savings. A two-wheeler loan, on the other hand, will ensure this doesn’t happen. You can opt for a bike loan and pay for the same in easy monthly instalments over a flexible repayment tenor. This will also allow you to use your cash reserves for better purposes like investing in stock options or mutual funds. Moreover, while owning your dream bike may seem impossible on a budget, with a two-wheeler loan, you can easily own a premium model. Since two-wheeler loans in India offer up to 100% financing options, you don’t have to compromise on your dream bike model or dip into your savings to own it.
You Can Enjoy Pocket-Friendly Interest Rates
The presumption of high interest rates prevents a majority of potential two-wheeler owners from applying for such loans. However, in reality, bike loan interest rates in India are extremely affordable and pocket-friendly, with most falling in the 7%-12% range. With such attractive interest rates, you can comfortably pay your monthly instalments without feeling financially overburdened.
You Can Improve Your CIBIL Score
Even if you can buy a bike with funds from your savings reserve, it is prudent to opt for a bike loan as this helps improve your CIBIL score. Since bike loan interest rates in India are capped at an affordable range, you can pay off your monthly instalments on time and strengthen your credit profile. Doing so will establish you as a reliable borrower and make it much easier to get loan approvals in the future. Apart from helping build your credit profile, a two-wheeler loan will also help you cultivate a sense of fiscal discipline when it comes to managing your monthly finances.
You Can Enjoy Nominal Foreclosure Charges
If you decide to pay the outstanding loan amount before your selected repayment tenor ends, you can attract a penalty charge. However, opting for a bike loan in India entitles you to some prominent foreclosure benefits. In other words, you can foreclose your two-wheeler loan without worrying about exorbitant charges, as most lenders in India charge a nominal fee for processing such foreclosure requests.
You Can Relish Quick Approvals and Exclusive Offers
Earlier, you would have to run from pillar to post, stand in long bank queues, and wait for months for a loan request to be approved. However, today, you can apply for a bike loan in a matter of minutes, right from the comfort of your home! Digitisation has not only expedited the application processes but also the approval process. If you meet the eligibility criteria of the lender – which tend to be very simple and basic – and submit the minimum documentation needed for the application, you can get your bike loan approved quickly. Additionally, you also get to avail of exclusive offers on bike models when you purchase them with a two-wheeler loan. Several bike loan providers in India collaborate with bike dealerships to offer attractive cashback offers, insurance discounts, and other benefits to their customers. You can score such benefits by opting to purchase your next two-wheeler with a bike loan.
Summing It Up
A two-wheeler loan allows you to purchase your dream bike without draining your pockets. Apart from building a good credit profile, you can also enjoy benefits such as quick approvals, affordable interest rates, flexible repayment tenors, and easy foreclosures with such loans. An example of such loans is the Bajaj Finserv two-wheeler loan, which offers competitive interest rates. Additionally, you will get 100 percent funding of the on-road price of the two-wheeler, along with repayment tenors of up to 60 months. The application process is quick, seamless and completely digital, with instant approval and quick disbursal of the loan amount.
