In our country, be it a city or a town, congested roads and unsettling traffic jams are a routine faced by all of us. A two-wheeler is a suitable mode of transport for the public. While comparing to a four-wheeler, it is meant to be more fuel-efficient, low on maintenance expenses, easy on the budget, better resale value, and best suitable for a faster commute.
The two-wheelers range from Rs. 35,000-100,000 depending on the various features. To purchase your bike, you often start making compromises to reduce your daily expenditure and set aside some cash. But today, you have enough financial options as that of a two wheeler loan to buy your two-wheeler without compromising on your budget.
Eligibility for a two-wheeler loan
- Minimum age of 21 years
- Repayment of the loan before the age of 60 years
- Have a source of income for at least one year, before applying for the loan
- CIBIL score of around 700-750 is suitable before applying for the loan
Documents required for a two-wheeler loan
- PAN Card as identity proof
- Passport or Voter ID as address proof
- Salary slips/bank statements for the past three months
- Latest Income Tax Return (ITR)
- Passport size photographs
Features of two-wheeler loan
- Many lenders finance up to 90%-95% of the cost of the two-wheeler.Â
- You must repay the two-wheeler loan within five years.
- Check the processing charges before availing of the two-wheeler loan. It ranges from 0.25%-5% of the loan amount.Â
- You can avail of pre-approved two-wheeler loans if you are an existing customer.
- Bike finance is available through secured and unsecured loan types.
Advantages of Bike Finance:
Alluring interest rate
The surging demands of two-wheeler in the country due to its accessibility have made the interest rates fall in current years. Low-interest rates make the loan pocket friendly and attractive to the customer.
No need to settle for less
Even though the basic utility to purchase your two-wheeler might be for the daily commute. Still, you have your eyes set on a particular model with specific features. Using a loan will let you buy the bike of your choice. The loan covers 90%-95% of the cost of buying; thus, it is easy on your pocket.
Boosts your credit score
Two-wheeler loans are affordable in terms of interest rates and repayment. Thus, it is possible to repay the loan without any delay. When you pay your EMIs on time, it helps to boost your credit score.Â
Ideal for all income groups
Financial institutions offer loans to cater to the requirements of the lowest of the income groups. Thus, any individual, despite his earning capacity, can avail of the credit.
Hassle-free process
A finance company provides hassle-free customer services like online application, minimal documentation, quick disbursal of funds, and 24*7 customer support.
Conclusion
Financing through loans while purchasing your bike has various advantages. Instead of utilizing your hard-earned savings on buying a bike, it could be used to pay for your child’s education, plan a vacation, and make the investment to reap better returns.
