Can’t get your head around if you should go for a two-wheeler loan or not? Then, this article will surely help clear the air and help you decide.
The recent COVID-19 pandemic has led many people to opt for personal forms of transportation for commuting to places. This has led to an increase in the demand for two-wheelers since it is one of the cheapest private transportation modes available in the market. If you wish to buy a new two-wheeler, you should consider going for a two-wheeler loan. Read on to learn more about it.
You may often be short of money and be unable to make the purchases you need or desire. A two-wheeler loan is a perfect way to finance your new bike. It allows you to make small monthly payments over some time to pay off the amount. This will not hinder your monthly budget, and you will be able to meet all your monthly expenses. It also saves you from making an outright payment, and you can utilize that saved-up money in times of need.
- About 90-95% of the cost of the two-wheeler can be financed. This means you only have to pay 10% of the price of the two-wheeler, and you can ride home with a brand-new two-wheeler.
- The payment terms are spread over time, depending on the institution you get your loan from. The loan tenure allows you a payment term of 6-60 months.
- Two-wheeler loan interest rates are determined by several factors like the age, income, and model of the two-wheeler the person is choosing. Interest rates on two-wheelers start from just 10.75% per annum.
- It can be availed by both salaried and self-employed personnel. You need to provide basic information and meet the eligibility criteria.
- A self-attested copy of your PAN card
- A self-attested copy of your passport or voter ID card for address proof
- Salary slips for income proof if you are a salaried person and proof of business for self-employed people.
- Your bank account statement for the last 3-6 months, depending on the company’s requirement you are taking the loan from.
- A few of your passport-sized photographs
Opting for a two-wheeler loan has certain advantages like:
- It allows you the freedom to choose any bike you want. Through a loan, you will get a better bike due to the financing done by other institutions.
- When you take a loan and pay your installments on time, it helps build a good credit score which can help you get future loans quickly.
- Using the Two-wheeler loan EMI calculator, you can calculate your EMI beforehand and spread the payment term accordingly, which would not hamper your monthly budget.
- If you buy an electric two-wheeler, you get tax deductions under Section 80EEB of the Income Tax Act.