Even though consumers are inundated with tempting loan offers every day, the banking industry has been quite aggressive in disbursing loans to them.
It allows them the chance to improve their lifestyle by taking out a loan for a new home, opulent equipment, and cars without using up all of their capital reserves. Due to the ability to purchase a scooter or bike fast and without making a significant financial commitment, demand for two-wheeler loans has skyrocketed.
Unfortunately, even though two-wheeler loans provide a simple and reasonable option to buy a motorcycle or scooter, the majority of people are still wary of having to pay an EMI burden. They would rather pay cash for a two-wheeler than obtain a loan. There are several useful advantages of buying a bike on EMI if you’re one of them.
Purchasing a two-wheeler is more feasible today than it was perhaps a few years ago. Yes, some do come with a big price tag, but two-wheeler loans are there to help with that! You must present your documents for the bike loans such as your PAN card, address documentation, and proof of income to use the EMI plans. If these two requirements are met, verification will be carried out, and you will be permitted to purchase the best bike loan.
Benefits of Getting A Bike on EMI
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Protection from financial emergencies and cash shortages
It is preferable to invest or save that amount in one single sum. Furthermore, you can never predict when a crisis would arise.
Since it prevents you from running out of money, choosing a two-wheeler loan is a wise move. How? by dividing the cost of your two-wheeler into manageable, manageable EMIs. Additionally, if the EMI amount seems to be on the higher side, you can lower it by making a greater down payment. You will benefit from a flexible tenure and lower EMI because of this deal.
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Improves Credit Score
Any loan application must meet a minimum requirement of having a good credit score. A bike on EMI can help you raise your credit score if it is low.
Two-wheeler loan EMIs are often on the lower side, which lowers the risk of default. As a result, once the loan has been fully repaid (or pre-paid), it will have a positive impact on your credit history.
You can get loans approved more quickly and at greater rates of interest with a higher credit score. Not to mention, you’ll now be the proud owner of your ideal bicycle.
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Get Special Rewards and Offers
With their partnerships with bike dealers and showrooms, the majority of banks are able to offer additional benefits like free insurance coverage, free registration, reduced prices on subsequent purchases, and cash back with the loan.
Additionally, during the holiday season, numerous banks offer a variety of alluring deals with two-wheeler loans, including reduced interest rates, presents, and reward points.
Steps to Purchase Bike on EMI
- If you’ve already decided on a bike, you can check your eligibility for a bike loan to purchase it over time payments.
- Visit this page to learn more about the documents for bike loan needed to apply for a bike loan.
- After determining your eligibility, you should compute your EMI. To get the projected monthly EMI payment amount, use the two-wheeler loan EMI calculator.
- Online Loan Request: By going to this application page, you can now submit an online application for a two-wheeler loan. After providing some basic information and personal information, you will be taken to a page that confirms your loan eligibility.
Factors to Consider While Opting for a Bike on EMI
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Credit Score
When applying for a loan, one of the most crucial considerations is your credit score. It’s a number that credit rating firms give you after taking into account a variety of factors, such as how many loans you’ve taken out, how much you borrowed, whether you made on-time payments or missed them, and other things.
Any score over 700 is considered to be an excellent score on a scale of 900. This score will determine the bike loan interest rates, and a strong rating will result in a cheap interest rate.
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Loan Amount
The total amount of the loan you are requesting affects the interest rate as well. As a result, the interest rate also increases because the financial institution is taking a bigger risk by giving you a loan for a larger sum. After all, it increases the likelihood that you will default.
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Loan Term
The interest rate will be lower if your monthly EMI payment is big because there is less chance that you would default.
Your interest rate will be substantially higher if you have a long tenure and a low EMI rate. This is a standard rule in banking. A bike loan EMI calculator can help you determine your best course of action.
Conclusion
It is clear that a bike on EMI has advantages over a cash purchase that are significantly greater. You can use it to enjoy special offers and rewards, build your credit score, take advantage of tax perks, and save money for a rainy day.
Despite all of its advantages, it’s up to you to negotiate the best price for your purchase. You might need to compare prices, confirm your eligibility, and carry out in-depth market research for this. But once you do, you’ll be very close to driving your ideal vehicle home.