Are you fed up with keeping up with the bus schedule or those ridiculous surge fares that cabs charge? Or not finding the autos or taxis exactly when you need them the most? Why not take a two-wheeler and eliminate all those hassles? Luckily, owning a two-wheeler is not as far-fetched as it may have seemed a couple of years ago. Yes, they all may come with a hefty price tag, but a two-wheeler loan makes it easy to own one.
Why Should You Take a Two-Wheeler?
First things first, you may not be quite convinced to take a two-wheeler if you are used to public transport. We also have heard many times that two-wheelers are bad investments.
Well, here are some facts that may try to convince you why you should apply for a two-wheeler loan and buy one soon:
- In the current pandemic situation and social distancing, it is safer and economical to commute on bike rather than using any other means of public transport.
- You can easily zip through traffic and spend less time waiting at the traffic signals. That’s right, as people wait in their cars for the road to clear up, you can just wiggle your way through traffic and get ahead of your four-wheeler counterparts.
- They are much easier to maintain as compared to four-wheelers.
- The rate of approval for loans for bikes is higher than those of four-wheelers.
- Two-wheelers don’t pollute as much as a four-wheeler due to better fuel efficiency.
- Overall, they are more economical than four-wheelers.
- They have a good resale value.
- They are much easier to park and offer better mileage.
Pretty sure that you agree with us now that a two-wheeler makes a great investment.
So, what’s the next step? Especially if you cannot afford to pay for the vehicle at once? Well, you apply for a two-wheeler loan.
Types of Two-Wheeler Loans
Primarily, there are two types of bike loan –
1. Secured Loan:This is a type of loan that you get against the security of a collateral. It can be a piece of your land, home, or valuables like gold. Most lenders secure the two-wheeler loan against the bike. This means that the bike itself becomes the collateral. If you cannot repay your loan, the lender has a legal right to seize your bike. If you do not want the bike as collateral, put up some other asset instead.
2. Unsecured Loan: If you can take a guess, this type of loan is the opposite of secured loans. These loans are not secured against any asset or collateral. These are basically like personal loans that you can use to buy a bike.
4 Advantages of a Two-Wheeler Loan
Here are 4 advantages and benefits of applying for a two-wheeler loan:
- Minimum paperwork is required when you apply for this loan. You can easily apply for it online without ever having to go to a branch. Most of the lenders just require the application form from you, and all the other activities are conducted digitally. Applying for the loan is simple, and the loan amount is disbursed rather quickly.
- You can choose between different repayment options as per your convenience. Ask the lender all the options and choose the one that best suits you.
- You can get competitive interest rates from different lenders. The loan amount is also high, allowing you to buy the two-wheeler easily, and comfortably pay for it in the coming years.
- Minimal documentation is required when you apply for this loan. Most lenders require salary slips, proof of age and employment, bank statements, and home address when applying for the loan.
3 Things to Keep in Mind before Applying for a Two-Wheeler Loan
Before applying for a two-wheeler loan , keep the following things in mind:
1. Check the Interest Rate of the Loan
Different lenders will offer different interest rates for the loan. Compare the interest rates and don’t jump into applying for the first loan you see. Shop around a little bit. A simple online search will show you results for the types of loans for bikes and interest rates, offered by different lenders.
Factors like your credit score, income, liabilities, age, residential stability, and current assets, will play an important role in determining your eligibility for the loan. If you have a poor credit score, you will be subjected to a higher interest rate. However, if you have an excellent track record of paying the bills on time and a high credit score, you can negotiate the interest rate with the lender.
Another great idea would be to consider special loan offers offered by the bike companies and lenders. Some popular offers include zero processing fees, free accessories, and even free insurance.
2. Never Over-Borrow
Make sure you can afford the two-wheeler loan. Do not over-borrow just because a loan is available to you. When you apply for a loan, calculate the EMI, and determine an amount that you can comfortably pay every month.
When you over-borrow, your monthly EMIs will go up, and it may disturb your monthly budget. Worse, you won’t be able to pay your loan back and default. This will reflect poorly on your credit score and make it difficult for you to apply for future loans.
3. Have a Repayment Plan in Place
Before you even apply for the loan, you need to have a solid plan of how you will pay the loan back. Discuss with your lender and understand all your options. Once you get the loan of your preference, at an interest rate that works for you, stick to the repayment plan.
Ideally, choose a system that allows you flexible EMIs and grace periods. This will ensure that you don’t default on your monthly payments.
In Conclusion
The troubles associated risks due to covid-19 pandemic of public transport will be a thing of the past with a two-wheeler. Apply for a two-wheeler loan with Shriram Finance Ltd and experience a smooth and hassle-free loan application experience. Choose a two-wheeler loan and become a proud owner of a new bike.
