5 Reasons to own a two wheeler loan in the city area
No other vehicle makes daily commuting easier than a motorcycle. Even for long rides, bikes are excellent. In addition, owning a two-wheeler also saves you from traveling in public transportation.
Moreover, COVID-19 has also brought a financial crisis, among other factors that may hinder you from purchasing a two-wheeler. You will have two options, either pay from your savings or apply for a two-wheeler loan.
In comparison, the latter is the best option to manage your finances. Whether you need a scooter or a sports bike, you can fulfill your dream of owning a bike with a two-wheeler loan.
Reasons to get a two-wheeler loan.
A two-wheeler loan is a wise way to manage your finances without redeeming your savings or investments. Depending on your lender, you can get up to 100% of the vehicle’s on-road price as a loan. With affordable two-wheeler loan interest rates, you can repay the loan amount without delays and manage your monthly expenses.
Here are the top reasons to get a two-wheeler loan:
Attractive interest rates
Due to numerous lenders available in the market, two-wheeler loan interest rates are unmatched compared to other loans. You will find lenders offering interest rates as low as 0.99%. However, it depends on multiple factors, such as the chosen lender, the loan amount, monthly income, source of income, employment status, and the chosen model of the motorcycle.
After considering the above-said factors, your lender may offer an interest rate for which you are eligible. So, if you intend to get a lower two-wheeler loan interest rate, it is best to meet your lender’s criteria. Also, you can use a two-wheeler loan EMI calculator to determine how much you can afford to pay as EMIs, which is calculated based on the loan amount, interest rate, and loan tenure.
Minimize financial burden
Much of a two-wheeler loan’s popularity stems from the fact that it can significantly reduce the financial burden via affordable EMIs. Although you do not need to pay a large amount of money in advance, you do need to pay a certain percentage of your bike’s value as a down payment to reduce the final loan amount.
A two-wheeler loan requires you to pay the loan amount in affordable EMIs, which you can calculate using an online bike loan EMI calculator. It enables you to plan your budget and manage your monthly expenses without any financial burden.
Enhance your credit score
Your credit score is one of the most crucial parameters considered by lenders to approve a loan. Through your credit score, lenders determine whether or not you are credit-worthy. Since a two-wheeler loan amount is easy to pay and the repayment tenure is usually longer, it enables you to enhance your credit score and secure loans in the future.
An improved credit score makes the process of acquiring a larger amount, such as a home loan or a car loan, easy and hassle-free. The closer you are to the 900 CIBIL score range, the better are your chances of securing a lower interest rate on your future loan.
Almost anyone can apply for a two-wheeler loan, provided they meet the eligibility requirement of a lender. Although the eligibility criteria to get a two-wheeler loan vary across lenders, they are mostly the same across all loan platforms.
Here are the documents required to take a loan:
- You must be an Indian citizen currently working as an employee of a public or private company. OR
- You must be a self-employed professional.
- It is mandatory to be at least 18 years of age at the time of loan application and 65 years at the end of the loan tenure.
- As a salaried individual, you must earn a minimum net income based on your lender’s policy.
- As a self-employed person, you must show a minimum net profit as per your lender’s policy.
Determine your EMIs
Another benefit of getting a two-wheeler loan is determining how much you can afford to pay every month as EMI. You can calculate your EMI using an online bike loan EMI calculator. Getting a suitable EMI enables you to manage your finances well and repay the loan amount without any delays.
So, if you do not want to redeem your savings to buy your dream bike, it would be wise to apply for a two-wheeler loan that offers the lowest two-wheeler loan interest rate and get a financial burden off your shoulder.