In recent years, two wheelers have become the most preferred modes on transport in cities. They are cheaper as compared to cars, easier to maintain, and help wade through traffic congested roads. They also have better resale value and are super convenient. But most two-wheeler companies require a one-time direct cash payment for purchasing these vehicles. In such cases, financial institutions have started to provide two wheeler vehicle loans, to make it convenient for customers to purchase their dream vehicle. Bike financing is easier to acquire, as compared to other loans provided by banks.
Some of the advantages of availing a two-wheeler loan instead of going with an all cash transaction are:
1. It reduces the burden in times of a financial crunch. Since the money to be paid back is at a nominal fixed interest rate, it makes it easier on the pocket to repay a small sum every month.
2. There has been an increase in the number of commuters who prefer to travel via two-wheelers. Due to this, interest rates have been facing a downward slope over the past few years. Interest rates mostly vary from 12-27%, depending on the bank, income range, bike specification, etc.
3. Getting a two wheeler vehicle loan approved is not a very difficult task as it is not mandatory to have an annual income salary within the taxable income range. A basic two-wheeler costs between 55,000-75,000. When a loan is taken up, the amount repaid each month will be lesser as the cost of the vehicle is lesser and there are also very convenient offers, which include low EMI outflow, and only interest.
4. Previously, borrowers needed to wait months before their loans were sanctioned to them. Now, it happens within a day! The process of repaying the amount has also become easy as the time period now varies between 12-48 months. And in case the borrower is unable to pay back the bike loan, an extension for 60 months can be availed as well.
A two-wheeler does not have to be a luxury that one cannot afford, anymore. With the help of loans from financial institutions, 90% of the marginal cost is covered and only 10% is the down payment, which is a very nominal amount, to purchase a bike. Such improvements have made the process of bike financing, hassle-free for the common man.
Some of the advantages of availing a two-wheeler loan instead of going with an all cash transaction are:
1. It reduces the burden in times of a financial crunch. Since the money to be paid back is at a nominal fixed interest rate, it makes it easier on the pocket to repay a small sum every month.
2. There has been an increase in the number of commuters who prefer to travel via two-wheelers. Due to this, interest rates have been facing a downward slope over the past few years. Interest rates mostly vary from 12-27%, depending on the bank, income range, bike specification, etc.
3. Getting a two wheeler vehicle loan approved is not a very difficult task as it is not mandatory to have an annual income salary within the taxable income range. A basic two-wheeler costs between 55,000-75,000. When a loan is taken up, the amount repaid each month will be lesser as the cost of the vehicle is lesser and there are also very convenient offers, which include low EMI outflow, and only interest.
4. Previously, borrowers needed to wait months before their loans were sanctioned to them. Now, it happens within a day! The process of repaying the amount has also become easy as the time period now varies between 12-48 months. And in case the borrower is unable to pay back the bike loan, an extension for 60 months can be availed as well.
A two-wheeler does not have to be a luxury that one cannot afford, anymore. With the help of loans from financial institutions, 90% of the marginal cost is covered and only 10% is the down payment, which is a very nominal amount, to purchase a bike. Such improvements have made the process of bike financing, hassle-free for the common man.
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