In India, two-wheeler ownership has remarkably boosted in the last few years. Various factors, such as the increasing cost of living, the need for more mobility, and the availability of affordable financing options, contribute to this.
In India, approx. 54% of households have scooters and motorcycles. With the growing demand for two-wheelers, more people are opting for two-wheeler loans to finance their purchases. Two-wheeler loans are a type of loan that is specifically designed to finance the purchase of a two-wheeler.
Two-wheeler loans offer several benefits, such as flexibility in repayment terms, low two-wheeler loan interest rates, and quick approval. Read further for more information on the benefits of two-wheeler loans in India.
What are the justifications for obtaining a two-wheeler loan in India?
Obtaining a two-wheeler loan has many benefits; a few of them are:
1. Keep savings intact for emergency
Everybody is susceptible to emergencies at all times. Therefore, one must always have some money set aside to handle them. However, one may be more exposed if they spend all the emergency money to buy a two-wheeler. Thus, with a two-wheeler loan in Delhi, a person’s savings remain undisturbed.
2. Buy a two-wheeler of your choice
There are numerous types of bikes out there. A person might want to buy a super expensive sports bike or something affordable. Whatever bike one wants to buy, one can easily get it by taking a two-wheeler loan without compromising their choice. A two-wheeler loan can aid in purchasing the bike at affordable EMIs.
3. Affordable EMIs
Taking out a loan to purchase a two-wheeler is a wise choice since it allows people to easily repay the loan in manageable instalments with a low two-wheeler loan interest rate, which is also in line with their monthly budget. One can save money for other needs when paying fewer, more manageable EMIs. Borrowers can also use a bike loan EMI calculator to compute the EMIs beforehand and manage their budget.
4. Improve credit score
Loans for two-wheelers are secured loans. Borrowers’ credit health improves if they regularly pay their EMIs on time and in full.
5. Hassle-free process
It has never been easier to obtain a two-wheeler loan in Delhi. These days, borrowers can apply for these loans online and get instant approval. All one has to do is fill out the application form, upload some documents, and submit it. The loan gets approval within a short time.
6. Competitive interest rates
In India, the two-wheeler loan interest rate is competitive. Interest rates depend on the NFBC chosen, the applicant’s employment tenure, salary range, vehicle type, etc. These days, NFBCs provide two-wheeler loans at relatively affordable interest rates that have decreased over the previous few years.
7. Flexible repayment options
A bike loan is preferable for its flexibility. Bike loans can have flexible repayment plans to make it easier for borrowers to make loan instalments. Today, many lenders offer online EMI calculators to assist applicants in figuring out their EMI before submitting a loan application. They are more self-assured now.
8. Tax benefits
A borrower can claim tax advantages on their interest repayments and two-wheeler depreciation if they are self-employed or professionals. It only applies to the two-wheeler they use for their company or profession. They can also deduct expenses from their earnings like fuel, two-wheeler insurance, maintenance, etc.
9. Easy-to-meet eligibility requirements
Getting approved for a two-wheeler loan in Delhi has never been easier. Nowadays, applicants can easily meet the eligibility requirements of the lender. However, borrowers need to remember that different lenders have different requirements. Thus, knowing the eligibility requirements of your selected lender is crucial.
10. Inculcate financial discipline
Borrowers must have enough money in their bank account to cover the monthly EMIs that come with a two-wheeler loan. As a result, they may estimate their expenses in advance and plan their future spending appropriately, maintaining financial stability. It also teaches them how to conserve money long-term and assists them in doing so.
When buying a two-wheeler, it is essential to make the right decision. Before making your purchase, consider several elements. A person must look at the price, model, affordability, and other factors. Moreover, when opting for a two-wheeler loan, choose a reliable lender. NBFCs like Muthoot Capital make acquiring a two-wheeler loan convenient and hassle-free. Borrowers can get their dream bike with affordable EMIs, fewer documents, finance schemes that suit their needs, competitive interest rates, easy-to-meet eligibility requirements and flexible repayment options.