The two-wheeler segment is one of the largest and fastest-growing in the country right now.
The practicality of the vehicle, both financially and on the road, endears it to a large demographic, not only in Tier 2 and Tier 3 cities but also in metropolitans.
A bike seems like a perfect option when you’re just starting with your life or when you have to maneuver jam-packed roads to reach your workplace.
Financially, durable and trusted two-wheeler vehicles from reputed brands are available within the range of Rs.60,000 to Rs.2,00,000.
A majority, if not all, of vehicles, are leveraged in India, and two-wheelers are no different. The two wheeler loan segment is booming, and if you’re looking to buy one for yourself, but are skeptical about the loan, read on to know more about the advantages that a two-wheeler loan offers.
Two Wheeler Loans make it more accessible for people across varied incomes to make their dream into reality.
There are several reasons why it is best to opt for a two-wheeler loan to buy your bike rather than paying the lump sum. A few of them are listed below.
6 Noteworthy Advantages of Availing a Two Wheeler Loan
- Favorable Interest Rates
The first and foremost advantage of applying for a two-wheeler loan from a formal lender is the favorable interest rate one can get.
Two wheeler loan interest rates are set on a competitive basis, meaning that the borrower has plenty of options to choose from since financial service providers generally keep interest rates close to each other.
Often, one can see that lenders take out special schemes and plan to gain more traction than their competitors.
- High-Value Financing
Two-wheeler loans are generally low-priced, making it easier for the credited amount to finance 100% of the vehicle’s value.
This allows the borrower to use the amount for a down payment. Moreover, the credited amount can, in some cases, cover over-the-top charges too.
The borrower must quote the on-road price of the vehicle they’re looking to buy rather than the showroom price to get this benefit. Higher coverage can then provide a financial cushion for other charges, if applicable.
- EMI Options
One of the most significant advantages of taking out a two-wheeler loan is the easy EMI repayment option.
EMIs stand for Equated Monthly Instalment and mean that the total amount that has to be repaid to the creditor, the principal plus the bike loan interest, can be paid in fixed installments spread over a long period.
The amount of the installment is contingent on factors like the rate of interest and the loan period.
The advantage of opting for easy EMIs is the repayment schedule and discipline it teaches, as well as the easing of the burden on your wallet to repay in huge installments.
- Swift Approval
Two-wheeler loans are popular among a large section of society because they are easy to apply for and are granted without much hassle.
Unlike some other loans, where the approval process entails several painstakingly detailed steps, two-wheeler loans are approved within a window of minutes if everything checks out.
A few documents to keep handy are:
- Proof of identities, such as Aadhar Card, PAN Card, or Passport.
- Address proof like Voters’ ID Card, Aadhar Card, or valid electricity bills.
- Income proof like bank statements for salaried employees and income tax returns for the self-employed.
- Easy Application and Approval
Unlike other loans, applying for a two-wheeler loan is a hassle-free, straightforward task that anyone can undertake without any difficulties.
The eligibility criteria for availing of two-wheeler loans are not very stringent, making it accessible to a large, young demographic that uses these vehicles. Some points to keep in mind are:
- The applicant must be over 18 years of age.
- Both self-employed and salaried individuals can apply for the loan.
- Most creditors set their threshold of the minimum income that aspirants must have that qualifies them to apply for the loan. This limit usually varies for salaried and self-employed applicants.
- Flexibility in Repayment Schedule
Most financial service providers offer a decent amount of flexibility in setting the repayment schedule for the two-wheeler loan.
The period can vary between 12 months to 60 months and varies from creditor to creditor. Borrowers are allowed the freedom to set the tenure of the loan period according to their convenience based on the amount to be repaid.
They can use EMI calculators to find a suitable repayment period for themselves, keeping in mind their current financial standing and prospects shortly.
It is essential to do the same diligently since setting the tenure incorrectly can put undue, avoidable pressure on repayment. (Check bike loan interest rate)
Taking loans will help you make your dream come true without burdening you to pay the entire amount.
These are just a few of the many benefits that make a two-wheeler loan an excellent choice.
If you want to avail yourself of Two Wheeler Loan at the best interest rates, then NBFCs two-wheeler loan is the best choice for you.
We are one of the most trusted lenders in India who offer affordable interest rates and an array of benefits to our customers. Apply Today!