A two-wheeler is a compact sized vehicle that allows you to zip through city traffic. Buying this vehicle has become easier than every today, thanks to two-wheeler loans offered by banks and non-banking finance companies. Lenders charge a low interest rate on these loans which can be repaid in Equated Monthly Installments or EMIs, over a specific tenure. These loans are sanctioned to all kinds of borrowers be it self-employed professionals, salaried individuals, businessmen and so on. Here are 5 advantages of taking out a loan to purchase a two-wheeler.
You can get up to 100% finance as loan
For the longest time, lenders provided 90% to 95% finance to purchase two-wheelers on loans, whereas you had to pay the remaining amount as down payment. However, today several lenders are providing 100% two-wheeler finance. This means that you do not have to make any down payment to purchase the bike. You only have to pay the loan registration and processing fees and the road taxes before you can take your two-wheeler home.
You can repay the loan flexibly
The cost of the bike loan, including the interest rate paid is not as high as most other loans. Despite this, lenders provide borrowers with flexible loan repayment tenures. You can repay this loan over tenures of one to five years, in small, pocket-friendly EMIs. This way, you do not really have to readjust your monthly budget, especially if you opt for long tenure loans. On the other hand, if you opt for shorter tenure loans, you are charged a relatively low interest rate.
You can get the loan despite lower incomes
One of the greatest advantages of 2 wheeler loans is that you can apply for it despite a lower annual income. Most lenders sanction this loan to applicants who have an annual income of up to ₹40,000 and above. As such, this loan makes it possible for almost anyone to purchase their own personal vehicle.
The loan helps build your credit score
Whatever loan you apply for, lenders always ask you to provide credit scores to check your eligibility and credit repayment behavior. In most cases, your loan will not be sanctioned if you do not have a credit score at all. However, this is not the case with a 2 wheeler loan. While you do not have to provide credit scores, the loan itself allows you to build a credit history, which can come in handy when you apply for other loans in future. Moreover, the EMIs of these loans are typically very low, thus reducing any chances of you defaulting on loan repayment. This loan, therefore, helps you build and maintain a good, positive credit score.
You can apply anytime because funds are disbursed instantly
Another great advantage of bike loans is that you can apply for the loan at any time and get the funds for the loan transferred into your account instantly. Lenders today provide instant approvals for such loans. You just need to decide the bike you wish to purchase and check if you fit the lender’s eligibility criteria. If you do, you can apply for the loan and the funds will be directly transferred either into your bank account in a matter of a few hours.
In conclusion, you can apply for online two wheeler loans nowadays. Just visit your chosen lender’s website, fill the application form, attach the necessary documents and send your application out. If you are eligible the funds will be transferred to your account within a day.
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