What Is the Best Way to Finance a Bike or Scooter in India?

Living standards for the common Indian have improved considerably over the years. The current generation of Indians has more ‘spending money compared to the previous generation. Hence, it is common to see Indians spending money on items of convenience when they have the funds.

One of the most commonly bought items of convenience is a personal vehicle. But there is a catch. The majority of Indians still consider a motorcycle or scooter as their preferred personal vehicle. The reason is simple. A bike or scooter costs less to buy or own. Then there is the easy availability of countless financing options.

This post, however, will shine a light on why one should apply for a bike loan when they want to buy a bike on finance.

Here goes.

What is the best way to finance a bike?

 

The best way to finance a bike is to apply for a two wheeler loan. The reasons are many. For starters, a motorcycle loan is pretty convenient. Secondly, all leading traditional lenders offer attractive bike loan schemes. The terms for the aforementioned schemes entail attractive Unique Selling Points like easy debt repayment options.

The other option to finance a bike is to apply for a loan from a Non-Banking Financial Company. Getting a loan from an NBFC is pretty easy when compared to getting a loan from a traditional lender (bank).

Furthermore, both banks and Non-Banking Financial Companies these days offer 0 downpayment loan schemes. A 0 down payment loan scheme entails the following clause. The ex-showroom price of a motorcycle will be paid by the lender. The borrower would not even have to pay a single penny as a downpayment.

The loan will be processed quickly and the borrower can ride their preferred bike home the same day. The only downside to a 0 downpayment loan is that these schemes entail high-interest rates. On top of this, the EMIs for a 0 downpayment loan will also be quite steep.

Additional Read: How To Manage Funding For Two Wheeler Purchase?

Hence, to be on the safe side of things, a traditional bike loan from a bank or an NBFC is the best way to finance a two-wheeler.

Compelling benefits of two-wheeler loans from leading lenders

 

A two-wheeler loan entails an array of attractive features such as the ones mentioned below.

  • All lenders in India offer bike loans where the registration charges for the motorcycle or scooter will be covered. It means that the borrower would not need to shell out more money later on.
  • Checking the tentative EMI on the bike EMI calculator tools available at lender websites and bike portals is essential. While doing that, a borrower can ascertain that the interest rate range for bike loans is 9% to 26%! This means that applying for a two-wheeler loan will not be a financially burdening decision. On top of this, low-interest rates can be enjoyed by a borrower with a high credit score. Borrowers who have never defaulted on a loan can also enjoy low-interest rates. Borrowers who do not have running debts with other lenders can also get low-interest rates for their bike loans. The age and source of income of the borrower also decide the rate of interest that will be charged by a lender. People getting a loan from a lender with whom they have a longstanding relationship can also enjoy low-interest rates.
  • Bike loans taken from a bank or an NBFC are secured where the two-wheeler will be the collateral. Hence, borrowers would not need to use their properties as collateral to secure the loan.
  • The tenures for two-wheeler loans can span up to 5 years. It means that one will be able to clear their debt at a pace that is financially comfortable for them. However, there is a catch to loans with stretched-out tenures. The lender would charge high-interest rates for debt.
  • Most two-wheeler showrooms across India have strong tie-ups with leading lenders. It means that a person would not need to apply for a loan before they walk into a two-wheeler dealership. They can step inside a showroom, choose a bike and finance it on the spot!
  • Lenders these days need a few pertinent documents to approve a loan request. Furthermore, most loan requests are processed within a single business day, if not hours. It means that one can ride their preferred two-wheeler the same day the vehicle has been financed. How convenient is that!?
Additional Read: How To Get A Two Wheeler Loan At Best Interest Rates?

Applying for a motorcycle loan has many upsides. However, since there are countless loan schemes available across India, one should not apply for a loan without researching. One should spend a lot of time on the internet looking for a lender and a loan scheme that fits their financial condition. Next, one should sit with the spokesperson of their preferred lender and clear all doubts. For more details, feel free to consult with a professional financial advisor.

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