The COVID-19 pandemic has changed how we lead our lives. Public transport is among the worst-hit areas as people are following the social distancing norms to stay safe. However, since people still need to commute for work or personal reasons, the need for a two-wheeler is greater than ever. If you are planning to buy one, then you should consider taking a two-wheeler loan.
Top 5 Benefits Of Two-Wheeler Loans
Here we are describing the top 5 benefits of taking Two-wheeler Loan.
1. Reduces Your Financial Strain
One of the first and most significant benefits of availing a two wheeler loan is the fact that it reduces your financial strain drastically. For example, if you want to buy a two-wheeler worth ₹80,000 without a two-wheeler loan, you would need to pay the full amount at once, which can put a strain on your finance. On the other hand, if you avail of a two-wheeler loan, you will instantly be eligible for a 90 to 95% on-road price assistance, meaning that just by paying a small down payment, you will be able to collect your vehicle and ride it home.
With a two-wheeler loan, you get the option of paying back your total dues in easy monthly installments, which can further reduce your worries, and allow you to plan out your finances better. Extending the earlier example, without a loan you would need to pay ₹80,000 in full to collect the vehicle, but with the loan, you can pay a down payment of mere ₹20,000 and pay an EMI of ₹2400 every month for the next 24 to 30 months to settle the full amount.
2. Improve Your Credit Score
The next benefit of a two-wheeler loan is that it helps improve your credit score. In India, credit rating agencies take into consideration four main factors while calculating your credit score, your past loans, repayment history, missed payments, and the total sum you have loaned. Since, both the number of your loans and the total sum of money you have loaned are taken into account, it is a direct indication that when you take a two-wheeler loan, your credit score will be affected.
Usually, a two-wheeler loan will be in the range of ₹50,000 to ₹75,000, and when you pay back all the EMIs on time, it goes to show that you are a responsible borrower, and thus your creditworthiness will drastically increase.
3. Attractive Rates of Interest
At present, there are multiple financial institutions that specialize in two-wheeler loans, thus making it easier for you as a lender to get the best interest rate on your loan application. In India, bike loans typically have an interest amount in the range of 12% to 27% and depending on your income, type of vehicle, tenure, and seasonal offers you can negotiate with either the seller or the lender will get you the best interest rate available.
The demand for two-wheelers among customers has also drastically increased, because of which the interest rates of two-wheeler loans are continuously coming down. For a borrower, there is no better time than now to avail of this loan.
4. Wide Range of Acceptance
The next benefit of a two-wheeler loan is the fact that it has wide acceptance across the board, meaning that almost every income group is eligible for a two-wheeler loan. While the minimum yearly earning requirement generally varies from one institution to another, if you do your research well, you can find lenders who have acceptance starting from yearly earnings of ₹100,000 or lower.
This is not only beneficial for low-income groups but to every income bracket in genera. It attracts a higher number of applicants, and thus increases the demand for two-wheelers at a large scale.
5. Additional Benefits
Along with all the benefits mentioned above, two-wheeler loans come with quick and instant approval, flexible repayment schedule, and also free-of-cost third party insurance for you and your vehicle.
The benefits of availing a personal loan in India are many, and in this article, we have shared with you five of them. So, if you are thinking of getting a two-wheeler, now would be a great time to go ahead and apply for a two-wheeler loan.