Owning a bike or scooter has become a transformative aspect of many commuters’ lives in India, significantly improving their quality of life. As two-wheelers increasingly dominate transportation, not everyone can afford to make an outright purchase. Recognising this, banks and financial institutions offer financing options for two-wheelers, making ownership more accessible.
Despite common opinions, opting for a two-wheeler loan can be advantageous over time. Bike finance opens doors to realising dreams that might otherwise remain unattainable. Before delving into the benefits of two-wheeler loans, it’s essential to consider bike insurance as a crucial aspect of responsible ownership.
Bike ownership mandates third-party insurance, and purchasing it online is now hassle-free. You can get comprehensive and third-party Bajaj Allianz bike insurance online plans with customisation options to suit individual needs. Ensuring your bike is insured is a responsible choice, eliminating excuses with the convenience of online purchases. Make sure you do the process for bike insurance renewal on time. Now, let’s delve into the benefits of securing a loan for your bike after understanding the importance of insurance. *
Opting for a two-wheeler loan offers numerous benefits that go beyond initial apprehensions. Instead of relying on others’ opinions, consider the advantages outlined below before deciding whether bike financing is right for you.
Emergency Fund Management:
Using all your savings to purchase a bike may leave you vulnerable in emergencies. A two-wheeler loan allows you to maintain a financial safety net, handling unexpected expenses efficiently. By opting for a flexible bike EMI plan, making a substantial down payment can reduce interest payments.
Options:
Financing your bike opens up various options that your savings may limit. You can now consider the bike of your dreams or opt for additional features that might have been out of reach with a lump-sum payment.
Convenience:
Modern banks offer seamless online application processes and simplified eligibility criteria for bike loans. The reduced paperwork and quicker loan disbursal make the process hassle-free, contrary to common misconceptions.
Incentives:
Collaboration between credit companies and bike dealers often results in additional incentives. These may include bike insurance coverage, rebates, coupons, and free registration. Leveraging these deals, especially during promotional periods, can lead to significant cost savings.
Reduced Interest Rates:
Intense competition among banks and NBFCs has led to attractive interest rates on two-wheeler loans, ranging from 7% to 18%. These rates are notably lower than those associated with personal loans, making bike financing a financially sensible option.
Encourages Savings Habits:
Monthly loan repayments incentivise disciplined saving, fostering a healthy financial habit. This commitment to setting aside funds helps repay the loan and encourages continued saving even after the loan is fully settled.
Facilitates Investments:
Financing your bike preserves your savings, allowing you to explore investment opportunities. You can earn higher returns and promote long-term financial growth by redirecting surplus funds into stocks, mutual funds, or other assets.
Tax Benefits For Businesses:
For individuals using a two-wheeler for business purposes, there may be tax benefits associated with the interest paid on the bike loan. The interest amount could potentially be claimed as a deduction, providing a financial advantage for those using the vehicle for work-related activities.
Speedy Approvals And Disbursals:
With streamlined processes and modern banking systems, bike loans often come with speedy approvals and disbursals. This quick turnaround time allows individuals to make prompt decisions when purchasing a bike, especially during time-sensitive situations or when there are attractive deals available in the market.
Hopefully, you now better understand the potential benefits of financing a two-wheeler. In addition to helping you save for a rainy day, it enables you to purchase the bike of your dreams that you otherwise would not be able to.
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* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
