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. A two-wheeler loan is money you borrow from a bank or financial company to buy a scooter or motorcycle. You pay it back in small, regular payments called EMIs (Equated Monthly Installments).

How to Finance a Bike in India?

When you're looking to finance a two-wheeler, you'll find two common options, banks and NBFCs. Here is a list of features explained for applying bike on loan through these modes:

1. Banks: The Foundation of Trust and Stability:

   • Think of banks as the cornerstones of the financial world. They are strictly regulated by the Reserve Bank of India (RBI).
   • As they are well established authorities, they often offer competitive interest rates and transparent terms. You are less likely to encounter hidden fees or unexpected surprises.
   • Many people already have a relationship with their bank, which can streamline the loan process. If they already know you, you may get better offers.
   • They offer a wide range of financial services, so if you already bank with them, it is convenient to add a loan.

2. NBFCs (Non-Banking Financial Companies): Specialization and Flexibility:

   • NBFCs often specialize in consumer loans, including two-wheeler financing. This means they are often more flexible and can tailor loan packages to your specific needs.
   • They might have faster approval processes than traditional banks, which is great if you need your bike quickly.
   • NBFCs sometimes cater to individuals who might not qualify for traditional bank loans, offering a valuable alternative. They may be more willing to work with those that have less than perfect credit history.
   • They often have streamlined processes, and can be more agile than some larger banks.

Documents Required for Bike Loan

Here is a list of documents that you need to provide while applying loan for bike:

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.

Tips to Keep in Mind When Purchasing a Two-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!

Getting a two-wheeler loan is a smart and practical way to buy your bike. Just do a bit of research, compare your options, and make sure you understand the terms. With some planning, you'll be on the road in no time.