With the metropolitan cities getting overpopulated, daily commutes by public transport have become an arduous task. Therefore, most people are opting for two-wheelers to navigate through congested travel and reach work on time. Besides that, the demand for two-wheelers has significantly surged over the past two years.
Whether it is your daily commute to the office or you want to take a long trip through the rough terrains of the Himalayas, your two-wheeler is your best companion. However, with the financial crisis hitting every household, it is wiser to opt for a two-wheeler loan to buy your dream bike.
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Why should you take a two-wheeler loan?
Instead of paying the total price of your bike in one go, you can apply for a two-wheeler loan and manage your finances without putting any burden on your pocket. If you have a stable income and good credit history, you can avail of up to 100% of the bike’s on-road price as a loan. It enables you to repay the loan amount in flexible EMIs, reducing the financial burden. The best part is that you can use a bike EMI calculator to determine the amount you can afford to pay every month.
Here are the reasons why applying for two-wheeler finance is the best option to manage your finances:
Reduce financial burden
Whether you want a sports bike to cater to your adventurous spirit or a simple scooter for your daily commute, you have already made up your mind about a particular model of a two-wheeler. However, buying your dream bike from your savings is not the best decision you can make. It does not only put stress on your finances but may also restrict you from buying the bike of your choice.
The downside of using your savings is that you may settle for a bike that only fits your budget. However, applying for a two-wheeler loan can get you the freedom to buy your favourite bike while reducing any financial burden. It allows you to choose any bike you want and pay the loan amount in flexible equated monthly instalments (EMIs).
Affordable interest rates
Purchasing a two-wheeler In India is highly beneficial as the interest rates have significantly decreased due to the tremendous popularity of two-wheelers. You can avail of affordable interest rates and repay your two-wheeler loan amount without any defaulting on payments. Some lenders can offer interest rates as low as 0.99% per annum.
However, it is worth noting that the interest rate depends on factors, such as age, income, credit history, etc. if you have a stable income with an excellent credit history, you have the upper hand while negotiating the rate of interest with your lender.
Customize your EMIs
When you take a two-wheeler loan, you must repay the loan amount with an interest rate within stipulated EMIs. EMIs are paid every month. It is crucial to make on-time EMI payments to any non-payment penalties. A golden piece of advice would be to assess your needs and affordability before applying for a two-wheeler loan.
You can use an online bike EMI calculator to determine how much you can afford to pay as EMIs. There are three main components of the bike EMI Calculator – Loan amount, interest rate, and loan tenure. You can alter the values to reach an EMI based on your affordability. In addition, calculating your EMI enables you to plan your monthly budget well and enough to ensure on-time payment of your bike loan EMIs.
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Tax benefits
Another benefit of applying for a two-wheeler loan is that you can avail of tax benefits if you use the vehicle for your business purposes. If you are applying for a two-wheeler loan as a self-employed individual, you are eligible to reap the benefits of a tax deduction on your bike loan interests.
Besides savings on interest repayments, you can also avail of other benefits after purchasing the vehicle in your company’s name. You can significantly save money on bike insurance, fuel, maintenance as such expenses can be deducted from your company’s profits.
In short
If you want to buy your dream bike and are short on funds, get a two-wheeler of your choice. Applying for a two-wheeler loan is the best option without constraining your savings. You can get the amount you need at an affordable interest rate and for a flexible repayment tenure.