Whether you are a fresher going to a college, or a family person, possessing a bike is like having an all-weather friend. Everyone likes to own a motorcycle because of their flexibility on the roads and two-wheeler finance can help them realise the dream. Anyone can avail two-wheeler finance. You can use a two-wheeler loan calculator to get an idea of your EMI liability before applying for a loan.
Compared to a four-wheeler or car, a bike or scooter are easy to manoeuvre on Indian roads. It can be used to bypass traffic on busy roads, and takes less space to park. The surge in demand for motorcycles and scooters has made it possible for lenders to provide the credit to applicants at a much lower rate. This article will give you five good reasons to opt for two wheeler finance.
1. Easy loan approval
Applying for bike finance is a reasonably simple process. You can check out your two-wheeler loan eligibility on your lender’s website before applying for the loan. It will help save time as you will get a better idea about your eligibility. By checking on multiple lenders’ websites, you can find the best deal available for you.
Further, you can check the requirements to apply for a loan online and submit your loan application on their website too. It is more convenient as you will not have to visit a nearby branch to apply for the same.
2. Helps build a credit profile
Credit score plays a crucial role in determining the bike finance interest rate you receive on applying for a loan. It takes time to enhance your credit score, and you can use the opportunity of buying a bike to improve your score significantly. By making timely repayments of your two-wheeler loan, you can prove your creditworthiness to your lenders in future.
By building a credit profile, you will get benefits on applying for other loans later. It will improve your chances of getting faster loan approvals in the future at comparatively lower interest rates. So, if you need to avail a significant amount of loan in the future, you can start by taking smaller loans and making their repayments timely to build an excellent financial history.
3. Develops financial discipline
Making EMI repayments do impact your monthly expenses. With loan repayment, you will have to manage your monthly budgets and develop the financial discipline to control your expenses. In the process, you’ll learn to curtail the unnecessary expenditure.
You can ensure that you have enough funds in your account when repaying by using a two-wheeler loan calculator. It will help you calculate the EMI liability on your loan so that you save that amount every time your salary gets credited in your account.
4. Claim tax and discount benefits
If you are a self-employed professional or businessperson, you can avail tax and depreciation benefits on your interest repayments of two-wheeler loan. However, these tax benefits are applicable only for the vehicles that you use for your business. You can deduct insurance, fuel, maintenance, and interest repayments from your profits.
Further, you can avail a discount on motorcycle finance if you look out for the deals during festive seasons. Many lenders promote their two-wheeler loan with seasonal offers by providing credit at minimal interest rates. Make sure not to miss out an opportunity if it comes your way.
5. Save the cash for emergencies
You can encounter an emergency anytime, and mobilising cash can get tricky in such a situation. So, it is better to have a financial backup available anytime to tackle them whenever required. By availing two-wheeler finance, you can maintain the cash while making small monthly repayments for your loan.
Mostly, a two-wheeler loan is not a significant burden on your monthly expenses, so it is better to avail a bike loan, rather than using all your money. Procuring a personal loan at the time of need is expensive compared to taking a secured two-wheeler loan.
India is a young country, and most youngsters like to ride a motor vehicle. By getting a two-wheeler loan, you can make your dream a reality without hampering your monthly expenses. Use a two-wheeler loan calculator on your lender’s website to know the monthly liabilities on making a purchase using two-wheeler finance. Consider all the reasons mentioned above to apply for the auto loan from a trusted lender.