A bike is an all-weather friend of a man. Whether it is for rushing to the office to reach on time in the snail-speed traffic or for running the errands or taking a long ride to the countryside, a bike always comes in handy. Not only that, a bike provides a cheaper and economical option for commuting as compared to four-wheelers. And indeed, you would not want to take out the car every time you want to go somewhere. So, it is a must for every household to have a bike.
Now, you may consider self-financing instead of taking up a bike loan. But what if we tell you that there are several advantages to taking up a two-wheeler loan as compared to purchasing a bike full in cash?
Here are the top reasons why you should apply for a loan when purchasing a bike.
#1 Keep your savings intact
Now, bikes are not that expensive, but certain make and models have hefty price tags. If you are looking for a bike for just daily commute purposes, you may want to invest in a bike that offers quality mileage. On the other hand, if you want something exquisite like a sports bike or a cruiser with looks, the price will only increase. In both cases, you would not want to disturb your savings. Even if you have the budget to purchase the bike in full cash, it will only disrupt your savings, and you will be left with nothing in case of any emergency. So, instead of cashing out on your savings, taking a bike loan will reduce your financial burden and will allow you to purchase the bike of your dreams.
#2 Lower interest rates
With so many bike manufacturers in India, the popularity of bikes has only grown in the country. Therefore, lending institutions have started sanctioning two-wheeler loans within just hours of application. Purchasing a bike loan is extremely stress-free nowadays as the interest rates have gone down exponentially. With financial institutions competing with each other, a bike loan has never become this much affordable. Simply use the Two wheeler loan EMI calculator to check your credentials and apply for the loan. You will get the loan at a lower interest rate, and thanks to the flexible tenure options, you can repay the loan with ease. The majority of the lending institutions offer a repayment plan between 12 months and 5 years on two-wheeler loans. You can choose your preferred repayment option based on your financial affordability.
#3 Choose your own EMIs
The best part about choosing a loan for a bike is that you don’t have to shell out the entire amount at once, but you can do that in monthly installments. You can choose an EMI plan that fits your needs and then pay a specific amount every month for a specific period. Nothing can be simpler than this. Also, you calculate bike loan EMI with the help of online calculators. Simply open a calculator- Select loan amount, interest rate and tenure and get the results in the form of payable EMI’s. It is a very simple process to get the idea about EMI.
#4 Creates a Financial Discipline
Some may say that taking up a loan will only put a burden on your shoulders. But this is not the case. With flexible tenure, EMIs, and low interest rates, a bike loan will teach you a lot about how to manage your finances. Suppose if you purchase a bike with all your savings. Now, your account has a ZERO balance. What will you do if you want emergency access to funds? Taking up a bike will teach you financial discipline and help you maintain financial stability.
#5 Build a Credit Profile
One of the significant benefits of taking up a bike loan, even if the actual cost of the bike is not that much, is that the loan helps you build a credit profile. A credit profile is a must as, in the future, when you make bigger purchases, you will have to take up a loan. Without a credible profile, no lending institution will lend you a surplus amount.
These are the five prominent reasons why you should apply for a loan while purchasing a bike.