In India, one of the most popular financial products is bike loans. This statement strongly applies to India’s Generation Z (people born after 1995).
Why?
Well, purchasing a motorcycle via a Two wheeler loan and not with the help of cash is a beneficial decision.
Some of those benefits are as follows –
When a borrower applies for a loan, their transaction gets recorded on a national level. EMIs paid to the lender over the tenure of the loan boost one’s credit score. Furthermore, timely EMI payments also build the credit history of the lender. A good credit score and a spotless credit history allow the borrower to be automatically eligible for large loans. It means that the borrower can rest assured that lenders have their back. If the borrower needs a large sum in the future for personal reasons, they can easily get their application approved.
The cost of living in India has gone up significantly over the last few years. Hence, people, irrespective of their financial background, struggle to save money for a rainy day. However, strict financial discipline can be cultivated within the psyche of an individual if they apply for a bike loan.
How?
Well, a borrower has to have money available in their account to pay off the EMI of their bike loan. Right!?
Hence, no matter what, the borrower would ease up on unwanted expenses and save as much money as they can. In this way, they will be able to pay off the EMIs on time. Simultaneously, they will be able to train their brain to follow strict financial discipline.
How cool is that!?
The bike brands in India have hiked the prices of their line-ups by many folds. If one purchases a bike with cash, their options will be limited due to budget constraints. All limitations go out of the proverbial window when one purchases a bike with a motorcycle loan. One can buy the bike they want at a time that suits their needs.
Taking out a loan has several benefits – this has been established already. But, a loan entails an interest rate that a borrower has to bear. Thankfully, there are quite a few tips that when followed can allow a borrower to enjoy low-interest rates.
Some of those tips are as follows –
To get the best interest rates on a bike loan, one should compare loan schemes from multiple lenders.
It is no news that bike loan interest rates vary between competing lenders. Hence, comparing loan schemes is the way of the wise.
One must remember that bike loan schemes need to be compared based on parameters other than interest rates. The parameters are as follows –
