Two wheelers (scooters, motorcycles or bikes and mopeds) are arguably the most popular form of commuting in India. This is evident from the fact that during every financial year since FY 2015-16, the annual sales of two wheelers has always been higher than 16 million units. Owning a bike not only enables convenient travel, but it can also be considered as a lifestyle statement.You can look forward to long rides with fellow bikers or by yourself, as well as manage your daily commutes easily and independently.
Buying a bike is a simple process – identify the bike you want to ride, go to the showroom, negotiate the price, make the payment and ride away on your dream bike. However, you might either have to delay purchasing your bike or compromise on the model. The reason would be the price of the bike which may not fit your current budget. This is where two wheeler loans can play a vital role.
Here is How Two-wheeler Loans Help with the Purchase of a Dream Bike:
There is Need to Break the Bank!
Many borrowers worry about redeeming their savings to purchase a bike. However, thanks to a two-wheeler loan, there is no need to do this. Leading financial institutions are prepared to offer a loan whose value can be up to 100% of the on-road price of the bike. Therefore the prospective buyer can aspire to own a bike without dipping into his/her reserves.
Calculate Before Applying
Leading financial institutions provide EMI calculators on their websites. This is an extremely handy tool as it enables a prospective borrower to enter the requisite data points such as loan amount, tenure and bike loan interest rate and immediately get the approximate EMI amount. Therefore a prospective borrower can make an informed decision after calculating the EMI amount.
Customer-friendly Eligibility Factors
It is easy to assume that self-employed individuals or those above the age of 50 will find it difficult to secure a two wheeler loan. That may have been the case earlier but certainly not as of today. Nowadays, applicants may find it easier to fulfil eligibility factors laid out by financial institutions to avail a two-wheeler loan. For instance, a self-employed person can apply for a two-wheeler loan with a minimum net income of Rs 1,20,000 per year. Similarly, it has become easier for those on the wrong side of 50 to apply for a loan as the age range offered by lending institutions such as Muthoot Capital Services Limited accommodates the same.
Prospective borrowers no longer deal with convoluted documentation requirements. They only need to submit valid identity proof, valid address proof, income proof, asset proof and recently clicked passport size photos. These can be easily arranged and submitted by the loan applicants.
The EMIs that borrowers need to pay depends largely on two-wheeler loan interest rates. Leading lenders offer attractive interest rates to borrowers. This ensures that the EMI repayments fit comfortably into the monthly budget.
Flexible Repayment Tenure
Two-wheeler loans, taken to buy scooters or bikes, provide flexibility in the repayment tenure to borrowers. A borrower may anticipate that his/her income would increase over a period of time. Therefore, a longer repayment tenure would make it easier for a borrower to repay the loan.
Rapid Approval Process
Leading financial institutions have expedited the two-wheeler loan approval process and are always optimising the same. The loan is disbursed within a few days of submitting an application and requisite documents. Therefore, one doesn’t have to wait for long to purchase a new bike or scooter.
Special Schemes for Borrowers
Financial institutions may also launch special schemes for borrowers – mostly during festive seasons. Some of these schemes may include waiving off processing fees, lower bike loan interest rates for a limited period etc. A prospective loan applicant must always keep an eye out for such offers.
Apply for Two-wheeler Loans from Anywhere
A prospective borrower keen to avail of a loan for purchasing his/her dream bike isn’t required to visit the physical premises of a lender. They can apply by filling up the appropriate form on the lender’s website and check out the eligibility. Post that the lender’s representative would call the borrower and assist in completing the remaining steps.
It is critical to choose the right financial institution to apply for a loan to buy the two wheeler of choice. You could either speak with individuals in your network who have availed of the same or check out various reviews available on the internet.