Be it visiting the market to buy groceries, dropping kids to school, or travelling through the city; a two-wheeler is something that serves most of the purpose and makes it a necessity for every house. Buying a ride of your choice gives you a sense of liberty and sets you free to commute on your terms. Several benefits make purchasing a two-wheeler on loan an excellent choice for an individual.
Applying for a two wheeler loan gives you the liberty to stop worrying about bearing the entire cost of the vehicle at once. Not only this, a loan is the easiest way to fulfil your dream of purchasing a two-wheeler as it comes with attractive interest rates, flexible repayment tenure of up to 5 years, and a host of other benefits.
Here are some reasons why you should prefer a loan against buying it with your own money.
Benefits of Purchasing a Two-Wheeler on Loan
Top reasons to select a two-wheeler loan as your choice when you plan to buy your ride.
Ease of Application
The application process is as simple as ever. You need to fill and submit an application form online. Most of the financial institutions have a simple documentation process, and their quick loan disbursal policy helps you to get the possession of your two-wheeler without any delay.
Two-wheeler loan comes with a fully transparent policy. Financial institutions from where you are availing the loan verify your two wheeler loan eligibility and sanction your loan. After the loan is approved, they transfer the loan amount to the dealer’s agency account from where you are purchasing your two-wheeler. You can also receive notification regarding the progress and status of your loan application through SMS and emails.
Quick Approval of Loans
Remember the days when you had to wait for months for a loan to be approved or stand in queues outside financial institutions. Well, those days are gone as there has been a significant improvement in the loan approval process over the last few years. The sanctioning time of the two-wheeler loan has come down to a day.
Two-wheeler loans are approved in a very short time. You can either fill an online application or visit a financial institution to apply for a two-wheeler loan. After your application is approved, the loan amount is transferred to your bank account immediately. Quick approval of two-wheeler loans gives you the ease in acquiring finance to pay for your two-wheeler. Most of the financial institutions provide a toll-free contact number that provides you with information regarding the bank loan on demand.
Smaller Tenures for Two-Wheeler Loans
Two-wheeler loan comes with an option wherein you can choose a smaller tenure. These tenure duration for two wheeler loans usually range from 6 months to 5 years. If you select a shorter tenure to repay your loan, you can save a good amount on the interest that you have to pay. You can repay your loan quickly by being a little financially disciplined. Thus, choosing a shorter tenure helps you to pay lesser interest and save extensively.
Enjoy Tax and Depreciation Benefits
You can claim tax and depreciation benefits on your interest repayments if you are a self-employed business individual or a salaried professional. However, this benefit is available only to those who use two-wheeler for their business or profession.
High Coverage of Loan Amount
You should always go for a higher two wheeler loan amount so that it can cover all the related expenses. To get a higher amount, you should quote the on-road price of the two wheeler rather than the showroom price. If you are low on budget, a high coverage amount in the 2 wheeler loans lets you quickly purchase a two-wheeler.
Avail Extra Benefits
With two wheeler loans, there is an option to receive an insurance cover or accidental cover along with the loan. 2 wheeler loans will also help you in covering the additional expenses during two-wheeler purchases such as accessories or alternate seating options.
Reduced Eligibility Requirements
Every financial institution has some eligibility requirements when you apply for a loan. Based on your eligibility, they can either approve or reject your loan application. However, a 2 wheeler loan has minimum eligibility requirements which even an individual who has just started earning money can easily fulfil.
No Down Payment
When you take a 2 wheeler, you don’t have to make any down-payment. You can get 100% of the two-wheeler price financed by the financial institutions. So even if you do not have cash, you can still purchase your dream ride with easy financing and zero down payment policy.
The popularity of two Wheeler in India has increased a lot in the past few years. This, in turn, has drastically reduced the interest rates on 2 wheeler loans. Interest rates vary from 10 to 25 per cent depending upon the financial institution that you choose to apply for avail the loan.
Helps with your CIBIL Score
Home loan, car loan or personal loan usually requires a good CIBIL or credit score as an eligibility requirement. But this is not the case when you apply for a 2 wheeler loan. Since the cost of buying a two-wheeler is less, it makes the two wheeler loans easy to pay and allows young professionals to start with their CIBIL scores.