Two wheelers are a convenient mode of transportation and also a very sustainable and economical one. All over India, people prefer motorcycles as a mode of transportation for the several advantages they offer. Along with that, the recent Coronavirus pandemic has also led people to switch to private modes of transportation. Under such circumstances, more and more people are buying two wheelers.
It is also an undeniable fact that buying a bike brings a sense of freedom. While there are people who think of buying two wheelers for commuting, there are many who simply want to buy one out of their passion for riding and fascination for a specific model. Regardless of your purpose, a two wheeler loan is a preferred way to buy a two wheeler.
A lot of people might have been shelving their dream of buying a motorcycle simply for the fact that they do not have the necessary financial resources to buy one. This is why financing your purchase is a great idea and significantly eases out the financial burden of buying a two wheeler.
Two Wheeler Financing Is A Good Option Indeed!
There are several reasons why a two wheeler loan is indeed the best way to buy a motorcycle in India. Let us take a look at them:
- These loans are easily available and accessible both at dealerships and online platforms. A lot of banks and finance companies offer such loans.
- These loans are safe and quite affordable with reasonable interest charges and safe transaction mediums.
- It will help you fulfil your dream of buying a two wheeler without having to burn your savings. You can keep away your savings for other purposes or emergencies.
- Two wheeler financing generally has flexible repayment tenures which makes it very easy to pay back the loans over a period of time through EMIs.
Basics Of Two Wheeler Financing
There are a few basic facts about two wheeler financing that you must know about before you apply for, and get such a loan.
- The Principal Loan Amount: This will be the amount you borrow from the lender during the purchase. It is the amount left after the down payment from the total price of the bike.
- EMI: You will have to pay back the loan in EMIs over the repayment tenure of the loan. This is a small part of the entire sum borrowed.
- Processing fees: Most lenders charge a fee to process the two wheeler loan
- Loan tenure: This is the time you will get to pay the loan back through EMIs. Generally, this ranges from 3 to 5 years depending on the price of the bike.
- Eligibility: The eligibility and documentation requirements for such loans is generally minimal. This makes such loans very easily accessible and also a popular medium to purchase bikes and scooters. It varies from lender to lender.
- Interest rate: While different lenders charge different rates of interest on the sum borrowed, the rates generally differ by a very small margin. Make sure the lender you choose offers the best deal and preferably a low interest rate for the loan.
Knowing Your Repayment Capabilities
The most important thing about getting a two wheeler loan is knowing how much you can pay as EMIs and how long you will take to return a certain amount that you borrow. This is when a two wheeler loan EMI calculator can be handy. It will help you get an idea about the EMI you will have to pay on a monthly basis and if it is affordable for you. A two wheeler loan EMI calculator will help you estimate the loan amount suitable for you based on the EMI amount every month, your income and other financial liabilities.
With all that in mind, you can buy a motorcycle with a two wheeler financing scheme from a lender that offers the best deal to you.