Should You Finance Your Two Wheeler?

As we have briefly mentioned above, people often dissuade others from taking a bike loan, but you should not be listening to other people when deciding this. If you wish to know whether you should be taking a loan for a two-wheeler purchase, then you need to put in some time to do your research. We will be talking in-depth about why you should apply for a two-wheeler loan, and after seeing this, you can decide if you wish to buy your vehicle on bike EMI or not.

Emergency FundIt is not a good idea to spend all your hard-earned money on a bike in one go. Additionally, finances are needed to handle crises. Everyone is aware that negative things never happen when we are prepared for them. This is why applying for a two-wheeler loan to purchase a bike rather than paying cash is viewed as the better course of action. You can make a sizable down payment and reduce the interest rate applied to the principal amount to reduce interest payments, picking a simple and flexible bike EMI.

OptionsBuying a bike with your savings may restrict your choices. You can find it challenging to get what you want while using your saved money because the amount you have set aside may not be enough to get you the bike of your dreams. Lack of money could prevent you from purchasing the bike of your preference or getting the features you were looking for in a bike. However, you can expand your horizons significantly when buying your bike on a finance bike loan.

Ease Most people may shy away from getting a bike loan because they mistakenly think the process will be difficult. Nowadays, obtaining a loan for two-wheelers is quite quick and uncomplicated, thanks to most banks' rapid online application procedures and straightforward qualifying requirements. Furthermore, you can benefit from quicker disbursal of your bike loan and minimum documentation requirements.

IncentivesMany credit companies now work with bike dealerships to give extra incentives for buying a bike using two-wheeler finance. These may include free registration, rebates, coupons, and insurance coverage. You take advantage of these attractive offers while receiving bike finance, especially around or close to the holiday season, and get to bring your bike home while spending a lot less than what you may have expected.

Lower Interest RatesBanks and NBFCs are competing with each other to offer their customers better interest rates, and it is the interest rate that can rope in the most number of customers. Based on the term you select, rates can range from 7% to 18% and higher. Remember that bike loan interest rates are significantly lesser than personal loan interest rates.

Makes You SaveSince you are aware that you have taken out a loan, you will be compelled to set aside a part of your income to cover your bike EMIs. This will encourage you to save money, which you may then invest in things like stocks. Also, once you get into the habit of saving money, you can continue to save even after you have repaid the loan for the bike purchase. It is a good habit that stays with you for life and helps you grow a lot more financially.

Helps You SaveYou forfeit the chance to invest your money and build savings if you use it to purchase a two-wheeler, as you have poured all your savings into making the purchase. As a result, you are no longer in a position to invest your funds and get greater returns. However, if you buy your bike with a bike loan, you can invest your savings elsewhere. With your extra funds, you can invest in stocks, mutual funds, or any other asset of your choosing and earn good returns.

Hopefully, now you have an idea about how a two-wheeler finance option may be good for you. It helps you save for a rainy day and also helps you to get the bike of your dreams which you would not otherwise be able to get. However, when getting your bike, do not forget to get your insurance policy for your bike from Tata AIG!