Given India’s high population, traffic jams are no surprise. Rushing to work every day due to the congestion on the road is just the norm. In such cases, a smaller and more mobile vehicle is a great option for those who have to carry out long hours of commute. A bike is a perfect solution for this.
Bikes also help you avoid the hustle-bustle of public transportation and gives you leeway to decide when you want to commute. It is without a doubt the most convenient and practical mode of commute. Due to this, an increasing number of people are trying to apply for a two-wheeler loan. This helps them avail the benefits of a bike without having to pay full price in one setting. Why do they choose this loan?
Enables Changing or Replacement
When paying from your savings without any financial assistance, buying the bike of your dreams can be challenging due to a higher price point. Some people also resort to lower-quality vehicles due to a restriction on finances. Compromising on quality can be dangerous while assuring high quality ensures your safety and well-being. Therefore, it is best to take a bike loan and alleviate stress from yourself and your finances. The loan allows you to purchase a model with the visual appeal, functionality, and mileage you desire. You can buy the bike of your dreams and pay off its cost over flexible tenures.
Zero Down Payment
A majority of loan providers offer a zero down payment bike loan option. The zero down payment option means that you do not have to dip into your savings whatsoever. However, this will naturally result in a higher loan amount, increased tenure, and higher payouts in the form of interest. It is never a good idea to fully empty your savings account because you never know when you might need it. A zero down payment option can be a good resolve in these instances if you only have emergency savings at hand.
Tax benefits are a significant incentive for potential borrowers. When you borrow a loan, you are entitled to a tax benefit that you can avail of when filing your taxes. If you are self-employed, you can purchase the vehicle in your company’s name and save a large sum of money on additional payments.
These additional payments are usually charged alongside the loan interest repayments and include:
- Bike insurance premium
- Cost of fuel
- Maintenance and repairing costs
Instead of paying through your pocket, your lender deducts these charges from the profits you make. Therefore, you enjoy these benefits through depreciation.
The process of taking a loan in itself is a lesson in how to manage your finances. When you take a bike loan, like all loans, you have to pay monthly EMIs. EMIs mean you are required to have enough funds in your bank account each month to pay out that amount. Therefore, EMIs keep your spending in check, further ensuring financial stability.
They also force you to calculate your monthly expenditure and see where you can and can not save. Certain mistakes you make over the course can enable you to plan out future expenses better. All in all, it instills good money management skills that can be used in the long haul and applied in other areas as well.
Low Rates of Interest
Due to the widespread usage and popularity of bikes in India, lenders have made them extremely simple and accessible to people of all socio-economic strata. As a result of this popularity, there is also increased competition. Hence, financial institutions are competing to offer affordable interest rates to incentivize more demand among potential borrowers. Therefore, bike loans are very economical.
Overall, inferring from the points mentioned above, it is very clear that bike loans are an apt resolution for those who want to buy quality vehicles but lack the funds. When navigating bike loan application processes, borrowers are advised to look into various lenders and research on which one is the best for their needs and financial standing. Once you know your provider, check their eligibility requirements, go for the loan, and watch your financial independence boom!