Do you want to buy your dream bike but do not have enough funds? If so, do not worry. A two-wheeler finance loan can help you buy your dream without redeeming your savings or investments. Most two-wheeler loan lenders offer up to 100% of the vehicle’s market value as a loan. It means you can buy your dream bike regardless of how much it costs. The best part is that you can avail yourself of affordable interest rates and flexible loan tenure.
However, it is worth pointing out that the interest rate you get on your two-wheeler finance depends on factors such as your age, income, credit score, current financial obligations, etc. If you wish to secure a lower interest rate, you will have to convince your lender that you can repay your loan within the stipulated EMIs.
Reasons to opt for two-wheeler finance to buy your dream bike
A two-wheeler loan comes with several benefits that you can avail yourself of. Therefore, before applying for a loan, it is imperative to use a bike loan calculator to determine how much you can afford to borrow or repay in EMIs.
Here are some of the top reasons to apply for a bike loan:
-
Reduce your financial burden
If you are thinking of buying a bike, you have already made your mind about a particular model. Whether you want a scooter or a sports bike to go on expeditions to the roughest terrains of the Himalayan mountains, getting a bike from your savings is not a wise decision you can make. It puts a burden on your finances, and due to the lack of funds, you may not be able to buy the bike of your choice.
The worst part is that you may settle for a bike that only fits your budget. But, applying for bike finance can give you the freedom to buy your dream bike without any burden on your finances. With flexible EMI options, repaying your loan is easy and convenient.
-
Attractive interest rates
Another benefit of opting for two-wheeler finance to buy your preferred bike is that it comes with attractive interest rates, allowing you to repay your loan without any default. Some lenders offer an interest rate as low as 0.99%, thanks to the competition among lenders. But, keep in mind that your interest rate depends on factors such as your age, loan amount, loan tenure, income, credit score, current financial obligations, etc. If you wish to secure a lower interest rate, you will need to show a high and recurring income. Besides, your credit score also plays a crucial role in your bike loan interest rate. Your lender may require a minimum CIBIL of 750 to apply for a loan. The higher your credit score, the greater your chances of availing yourself of a lower interest rate.
-
Freedom to customize your EMIs
Your EMI amount is an integral part of your bike loan application. When applying for a bike loan, your lender needs you to repay the loan with the interest rate within the stipulated EMIs. It is imperative to pay your EMIs on time. Any delay or default on your repayments will attract penalties from your lenders. So, it would be wise to assess your needs and affordability before applying for a loan.
Before applying for a bike loan, you can use your lender’s online bike loan EMI calculator to determine how much you can borrow as a loan or afford to pay as EMIs. There are three main components of a bike loan EMI calculator – the principal loan amount, interest rate, and loan tenure. You can alter changes to their values until you come up with a suitable EMI figure.
-
Tax benefits
Yes, it is true. Applying for bike finance comes with tax benefits as per the guidelines of microfinance in India. You can get tax benefits if you are using your bike for your business purpose. For instance, if you are applying for a bike loan as a self-employed person, you are eligible to get tax deductions on interest payable on your bike loan.
To avail of tax benefits on your bike loan, you will need to purchase the vehicle in your company’s name. It is also a great way to save money on bike insurance, fuel, and maintenance as such expenses can be deducted from the company’s profits.
In summary
Are you planning to buy your dream bike? If so, a golden piece of advice would be to apply for a bike loan to manage your finances. You can secure a higher loan amount and lower interest rate thanks to microfinance in India. However, before applying for a loan, make sure to assess your needs and determine your affordability. You should be able to repay your loan without constraining your monthly budget.
Read More About Article Fit
