Have you been eyeing that high-end bike that’s just a little too expensive? Or are you worried that blowing all your savings on a new bike will leave you financially vulnerable? Well, the good news is that with an easy-to-get bike loan all those worries can be put to rest.
Bikes have recently become very popular in India with two-wheelers set to become an essential product for both the urban and rural public. To match up to this high demand, financial organizations are offering lowest interest bike loans that you can easily avail.
Not only are bike loans the most convenient option, but they also offer more stable financial security. Five top reasons for availing a bike loan are as follows.-
Your bike loan gives you the option to bring home the bike without having to make the full cash payment. Instead, you make 15-20% of the payment and pay the rest in the form of a monthly amount (EMI), which makes the payment process hassle-free.
You can get low-interest rates on bike loans nowadays. These bike loan interest rates can vary and will depend on several factors like the bike price, your income level, and other variables related to the market. But in general, the interest rates of bike loans have steadily dwindled in recent years.
Most banks & NBFC will also offer you flexible repayment options to help reduce undue strain on the EMI repayments. Because of high demand, bike loans are now readily available. An online application for a loan takes only a few moments and gets approved almost instantaneously.
If you avail a bike loan, it will help you maintain the liquidity of your assets. Cash down payments for a bike might put a lot of stress on the bank balance. If you spend all the cash you have saved-up, then it will leave you vulnerable to financial emergencies.
A bike loan is a simple solution to this as it lets you set aside your cash for unavoidable emergency purposes. If you manage your EMI smartly, you can also save or invest some amount of money while you keep paying your monthly premium. You can easily calculate your loan EMI with Online Bike EMI Calculator.
The RBI and government guidelines will make sure that the bank & NBFC transactions are safe, secure and transparent for all concerned parties. This process will go a long way in minimising your stress.
You can often access some extra benefits with your bike loan. Most banks & NBFC offer a package of accidental cover or insurance cover at discounted rates with a bike loan.
A bike loan also lets you access extra funds which you will need to buy the bike accessories. It is a good idea to get high coverage on your loan so you can use it to pay for the on-road costs like road tax and insurance.
If you use your bike in a professional capacity as a businessman or a self-employed professional, then you can claim some extra benefits. These include tax benefits on the interest payments.
A Good Credit Profile
When you avail a loan, your financial organization will start tracking your financial behaviour. The banks & NBFC will then apply this information in building a credit profile. If you are regular with your EMI payments, then it reflects in the credit score. If you miss out or delay your EMIs, then it will negatively affect your credit score.
If you have a positive credit score, you can get lower interest rates on your future loans. Your credit score can also affect the premium rates of your insurances. This also helps you maintain financial discipline and regularity.
Afford Your Dream Bike
Bike enthusiasts always tend to go for high-end bikes with powerful engines and a hefty price tag. You might think that it is too expensive, but bike loans provide an easy solution. With the bank financing your ride, you can choose to buy any bike that catches your eye without having to worry about the costs.
A bike loan for a more expensive bike will take longer to pay off, but with the loan broken down to manageable EMIs, you will hardly feel the strain on your finances. And the best part is that you can drive around on the bike of your dreams, even as the loan slowly gets paid back.