Many people rely on public transportation for their commutation needs. But this makes them vulnerable to time constraints, queues, and increased travelling costs. Hence, it is natural to aspire to own a vehicle. Often, the first transport that comes to mind is a motorcycle. The reason for this is its affordability, low maintenance, and fuel efficiency.
Thankfully, they get a solution in the form of a Two-Wheeler Loan. Banks provide this financing option to assist you in buying your desired bike without worrying about a cash crunch. The Loan comes with reasonable interest rates and flexible equated monthly instalments for easy repayment. Availing the Loan to purchase your dream vehicle gives you the following benefits:
Quick financing
The best part about getting credit these days is the availability of digital means. This means you no longer must wait for the verification and other processes to complete before receiving the Loan amount. These steps get completed instantly online after you apply with the paperwork. Hence, you find out if it is approved quickly. As a result, the Loan gets sanctioned within a few days if you meet the criteria.
High coverage
Most lenders offer a Bike Loan of up to 85% to 90% of the motorbike's market price, while you contribute the remainder. Hence, you need not worry about falling short on cash. This enables you to buy the model you like without financial constraints. However, a high Loan amount results in a higher EMI and interest rate. Therefore, make sure you finalise the amount wisely, considering your financial stability.
Simple application process
The application involves minimal requirements. If you choose to apply online, it gets completed within minutes. This includes entering the basic information such as your name, address, date of birth and income details. The same goes for the documentation, where the entire process gets carried out digitally. Thus, enabling you to upload the paperwork without any hassle.
Competitive interest rates
Since there is a high demand for two-wheelers in India, Loan providers have subsequently grown. To survive the competition, they come with attractive offers. As a result, you get to avail yourself of the Loan at an affordable rate. Moreover, the vehicle you purchase acts as collateral. It mitigates the lenders' risk, which allows them to provide the Loan at a lower interest.
Improved credit score
Maintaining your credit rating is extremely important to create a favourable profile for big-budget Loans for Home, Business, Personal needs, etc. Since a bike generally precedes such high-value requirements, a Two-Wheeler Loan lets you build a higher credit score for the future. By paying off the EMIs on time, you get to create a strong credit history that helps you avail of other Loans.