What is the Best Way to Finance a Two-wheeler in India?

What is a Two-wheeler Loan?

Two-wheelers are one of the best and most convenient modes of transportation. However, it is not only a popular mode for a daily commute but is now used for leisure, long-distance travel, cruising, racing, and off-road riding.

Many people cannot afford to buy a bike. This is when a two-wheeler loan comes into the picture as a saviour. Bike on loans is an affordable method to purchase their dream bike. A two-wheeler loan is offered by many financial institutions and NBFCs to buy your favourite bike model by repaying the loan in EMIs.

Best Way to Finance a Two-wheeler in India

You can finance a two-wheeler loan from a bank or NBFCs (Non-Banking Financial Companies) in India.

These two are the best ways to finance a two-wheeler in India because 100% of two-wheeler are on-road prices and they finance for the same. Therefore, you can apply for a zero-down payment without burning a hole in your pocket.

Usually, a bike loan is inclusive of the registration charges and two-wheeler insurance policy. Hence, you can repay all this in the EMIs without paying separately for the same.

A two-wheeler loan availed from banks or financial institutions is a secured loan. Here, the vehicle itself is considered collateral security. The interest rates start at 9% and go up to 26%, depending on one’s credit score. It also depends upon other factors, including a relationship with the bank, income source, age of the borrower, employment type, etc.

A two-wheeler loan tenure is usually up to 4 years. However, some banks and NBFCs offer 5 years. You can choose the loan tenure based on your paying capacity. Keep in mind your financial responsibilities and choose your loan repayment tenure.

These days the pre-approved two-wheeler loans are available for existing customers by banks. These loans are instant to avail and disbursed in the bank account as early as possible.

Moreover, two-wheeler showrooms have tie-ups with different banks or financial institutions to provide loans to the needy ones. Hence, you can avail your bike on loan from the bike showroom itself.

The documentation required for a two-wheeler loan is minimal. The process of sanctioning the loan is quite simple and speedy. Also, the bike on loan is available in zero down payment option or easy repayable EMI schemes.

Benefits of Taking a Two-wheeler Loan

Getting a bike on loan have certain benefits associated. Here is a list of advantages of taking a two-wheeler loan-

1. Get the funds instantly when you need them the most
2. You can avail of bike loans for superbikes as well
3. Get loans on super affordable interest rates
4. Choose the loan repayment tenure as per the paying capacity
5. Pay EMIs timely and build a strong credit score.

Points to Keep in Mind When buying a 2-wheeler loan-

• Do not rush with the decision to obtain a two-wheeler loan. To help you with the same, here is a list of some tips to simplify your task-
• Build your credit score as it strengthens your odds of loan application acceptance. Also, it makes you a more reliable customer in front of the lender.
• Banks and NBFCs are always the best and most reliable choices for loans. However, it is advised to check all the financing options. Also, once review the financer offered by the bike dealership.
• As you have multiple lender options available, you must research extensively and compare the benefits offered by different lenders. You can start this by finding the top financiers in your location. Also, you can visit their website and read about their terms & conditions.
• It is suggested to buy a bike insurance online once you purchase the bike. In case your bike meets with an accident, you might face disastrous financial stress. Therefore, your two-wheeler insurance coverage will financially protect you by providing an adequate claim amount.You can also check the bike insurance premium at Policybazaar.com using the online bike insurance premium calculator.

In a Nutshell

Applying for a two-wheeler loan is a safe and conventional option. In this digital era, you must do extensive research before finalising the financer for the bike loan.You can follow the above suggestions while applying for a bike loan.