4 Reasons To Apply For A Two-Wheeler Loan

by Arjit Chalmela Finance Student

Owing to the rise in India’s population, traffic congestion has become a daily occurrence. Many people travel to work using public and private transport but often get late because of the traffic jam. Hence bikes become a preferable option as they help you cruise on the roads even during peak hours.

You can choose the desired bike model and pay for it by applying for a two-wheeler loan from any bank or financial institution. Loans are a popular finance product and necessity that helps you buy your dream bike immediately without affecting your savings.

No financial burden: As a bike buyer, you have some expectations such as great mileage, the latest features and specifications, and visual appeal. Buying a bike from your savings may involve a financial burden that you can avoid with a bike loan.

Enjoy tax benefits: If you are a working professional, you can reap the benefits of tax-deductible interests on the loan. Upon purchasing the bike in your company’s name, you save tax and loan interest repayments on insurance, fuel, maintenance, etc.

Financial discipline: You need to pay monthly EMIs towards the bike loan that requires sufficient funds in your bank account. You can maintain financial stability by calculating the expenses beforehand and planning future expenses accordingly.

Low-interest rates: Because of the bike popularity in India, you can now get a loan conveniently. The interest rates have reduced, and several banks offer attractive loan options at affordable and reasonable rates to customers.

Bikes have become affordable and accessible, thanks to the availability of online loans. You can apply for the two-wheeler loan online, check the eligibility, figure the EMI amount, and get instant approval. Though you benefit from a simple application process, select the financing company carefully.

It is essential to compare the loan interest rate and EMI before choosing the lender. As a thumb rule, all your loans and liabilities should not exceed 40% of your net pay. If you apply for multiple loans, the allocation towards the bike loan will be even lower. You can calculate it using the two-wheeler loan calculator.

This tool is easy to use and available on most banking websites. You can adjust the key variables associated with the loan to arrive at a customised figure and compare various loan schemes before finalising the lender.

The loan amount is the total amount you intend to borrow from the bank or financing company after down payment. The rate of interest is the interest charged by the lender on the loan. The tenure is the number of months selected to repay the loan in instalments.