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Is It Good Option To Avail For A Bike Loan To Buy Two Wheeler
27 Mar 2020
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Following the 1st of  April 2020, there will be a change in the emission standards that all major on-road vehicles in India will need to follow. The new BSVI standards will apply to light as well as heavy-duty vehicles and are not limited to only 4 wheelers but also 2 and 3 wheelers as well. Due to this, there will be a huge interest from the general public in purchasing a brand new vehicle. To feed this interest, automakers will be looking to awe potential new customers with flashy, trendy new cars and bikes. 

 

When you decide to upgrade your old bike with a new one, financing it seems like a hindrance. The first question that pops up is ‘How can I finance by bike without disturbing my regular expenses?’ 

There may be several ways of financing the new bike, but most prominently people either go for a bank loan or use their savings. Certainly, drying up the saving isn’t a recommended option, so getting a bike loan is the only feasible option. 

The reason is simple. It is never advisable to spend your saving in buying a new car or bike. It surely will put a dent in your savings and will make it hard for you to recover from it.  Besides, you might get unwanted attention from the IT department as well, who surely might question you upon such a huge cash payment with limited income. 

 

So long answer short, it is a great idea to avail of a bike loan for your new bike. However, if you’re still not convinced then here are some reasons why getting a loan is the best option.

 

Availing Bike Loans will enable you to improve your credit score:

A good credit score will help you get instant personal loans. We can’t have an amazing credit score all the time. There could be many reasons, like missing a loan payment, having low balance in bank accounts, defaulting on a loan or too much credit card debt. 

 

Taking a bike loan at an affordable rate and making the regular monthly payments will show the credit rating agencies that you are financially stable and reliable. An improved credit score will give you the chance to get cheaper loans in the future.

 

Since a bike is a depreciating asset, you can use the bike loan to adjust your balance sheet:

 

Cars and motorcycles have a high rate of depreciation. The value of your new bike is drastically reduced the second you purchase it. Although this may seem like a bad thing,  a businessperson will tell you otherwise. Depreciation has a hidden benefit for businesses as they can be used to reduce the total tax payable. 

 

The money you save in taxes through the depreciation of your new vehicle could make the purchase of your new bike worthwhile. Especially if you have the cash to spare.

 

Two Wheeler Loans are cheap:

 

One of the most significant features of two-wheeler loans is that they are cheap to avail. Most of these loans require you to make a downpayment of 10 to 15 percent for the loan following which the bank will finance the rest. This is very useful in cases where your EMIs don’t take a sizable bite out of your monthly paycheck. 

 

There are several websites who offer you a bike loan EMI calculator. They give you a rough estimate of how much your loan will cost. You’re free to check them if you’re uncertain how much you can afford on your new bike. 

 

Bike loans are very easy to avail:

 

The main goal of offering to finance for bike loans is to make sure that everyone can avail the facility if they choose to. These kinds of loans are prevalent among the youth and the salaried population because of the minimum eligibility criteria offered by banks. It becomes easier to avail them and ensure that even people who have just started earning can get a suitable loan.

 

Bike loans can be availed by someone who is as young as 18 years old. The maximum loan amount is capped at 10 lakhs, and the maximum repayment tenure is 7 years (or 84 months). The minimum income required is Rs 50,000 per year. This ensures that large parts of the population can avail them.

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BikeEMICalculator BikeLoan
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