Owning a two wheeler in today’s fast paced world has become more of a necessity than a choice. Commuting from places to places for by the means of public transportation adds another factor of stress to an already stressful life. Public transportation is generally crowded and makes commutes difficult for individuals. Relying on cabs for travelling from one place to another adds another financial expenditure that the customers have to consider. Even if the daily commute for office is handled with public transportation, for weekend getaways individuals need a personal vehicle. Cars are generally an expensive option for the working middle class, thus buying a two wheeler is most suitable option for individuals who wish to own a vehicle.
Individuals who wish to purchase a bike can opt for a bike loan. A bike loan is a loan product that is provided by financial institutions to customers who wish to purchase a bike. The purchase of a bike through an individual’s savings account can make a huge dent in the savings account which they might have been saving for a rainy day. Thus, opting for a bike loan is one of the best options available for the customer. In a bike loan, the financial institution provides the customer with the loan amount for the purchase of the bike. The bike loan is provided to the customers at a certain interest rate. The repayment on the loan is done through equated monthly instalments (EMIs). The customer will have to make monthly instalments for a set tenure period to complete the repayment of the loan. Generally, bike loans are provided at fixed interest rates which means the customer pays a fixed amount every month for the tenure period. Repayment through monthly instalments makes the process of repayment easy for the customer.
5 benefits of a two wheeler loan:
- On the spot loan sanction:
Most of the financial institutions have tie-ups with the dealers who sell bikes, which reduces the customers effort and time. The customer can just walk into a showroom and get the loan sanctioned for the bike and buy the two wheeler.
- Ease of payment:
A Two wheeler loan are generally spread over a long tenure so there will be no type of financial burden on the applicant. Since the tenure period has been spread out the customer gets sufficient time to pay back the loan amount for the bike loan. The tenure for a bike loan is generally between 12 and 48 months.
- Flexible tenure:
Flexible tenure means the customer can choose their tenure period. Generally, the tenure period for a bike loan is 4 years. This ensures a low EMI amount for the customer which doesn’t affect the monthly finances of the customer.
- Low income criteria:
Compared to any other loan, bike loans offer good percentages to the people who have lower annual income. For an individual who earns around Rs. 50,000 can also opt for a bike loan.
- No compulsion of credit score:
While most loans require a strong credit score, bike loans do not require a strong credit score. Customers with no credit score can also apply for a bike loan.