Do you desire to get your ideal bike but lack the necessary funds? If so, don’t be alarmed. You can purchase the two-wheeler of your desires with a two-wheeler vehicle loan without ever using up your investments or savings. The majority of two-wheeler loan providers will lend up to 100% of the vehicle’s market value. It means that you can acquire your dream bike regardless of its price. You can take advantage of low rates and flexible loan rates, that is the finest part.
It is important to note that the interest rate you receive for your two-wheeler loan will vary depending on your age, income, credit score, current obligations, etc. You must persuade your lender that you can return the vehicle loan within the EMIs if you want to get a lower interest rate.
the benefits of using two-wheeler financing to get your dream bike
You can take advantage of a number of advantages that come with a two-wheeler loan. Therefore, it is necessary to utilize a bike loan calculator to estimate how much you can borrow or start repaying in EMIs before applying for a loan.
Here are a few of the primary motivations for seeking a bike loan:
Reduce the amount you owe
If you’re considering buying a bike, you probably already know which model you want. Purchasing a bike out of your savings, whether you want a scooter or a sports bike to travel to the most difficult terrain in the Himalayan highlands, is not a smart move. It stresses your finances, and as a consequence, you might not have enough funds to buy the bike of your choice.
Worst of all, you can choose a bike that solely matches your budget. However, requesting bike financing might give you the flexibility to purchase the bike of your dreams without having to be concerned about your finances. It’s simple and straightforward to repay your loan owing to flexible EMI choices.
favorable interest rates
The fact that two-wheeler finance offers favorable interest rates and enables you to repay your loan without default is another advantage of choosing it to purchase your favorite bike. Since lenders compete with one another, some of them offer interest rates as low as 0.99%. But keep in mind that your interest rate is influenced by things like your age, the size and length of the loan, your income, your credit rating, your present debts, etc. You must demonstrate a substantial and consistent income if you want to get a lower interest rate. Additionally, the interest rate on your bike loan is significantly influenced by your credit score. To apply for a loan, your lender might require a minimum CIBIL score of 750.
Your likelihood of obtaining a cheaper interest rate increases with your credit score.
Flexibility to change your EMIs
Your application for a bike loan must include information about your EMI payment. Your lender requires you to return the loan with the interest rate within the agreed-upon EMIs when you apply for a bike loan. You must make timely EMI payments. Your lenders may impose penalties if you make payments late or default. Evaluating your needs and affordability makes sense before submitting a loan application.
You can use your lender’s online bike loan EMI calculator to estimate how much you can borrow as a loan or afford to pay in EMIs before submitting an application for a bike loan. The principal loan amount, interest rate, and loan tenure are the three primary variables that go into a bike loan EMI calculator. Until you arrive at a suitable EMI figure, you can make some adjustments to their values.
Tax advantages
Yes, that’s accurate. According to the microfinance regulations in India, applying for bike financing has tax advantages. If you ride your bike for work, you may be eligible for tax benefits. For instance, if you are a self-employed person seeking a bike loan, you may be able to deduct the interest charged from your taxes.
You must buy the bike in your company’s name in order to qualify for tax advantages on your bike loan. Additionally, because these costs can be deducted from the company’s income, it is a great way to save money on bike insurance, fuel, and maintenance.
