Purchasing a two-wheeler can be a costly financial decision. It may not restrict cash flow for those with sufficient savings. However, for the middle-class Indian, it usually involves parting with a significant portion of their savings. This is one of the main reasons many Indians opt for a two wheeler loan instead. Due to this growing demand for two wheeler financing options, many banks and non-banking financial companies NBFCs have started offering attractive bike loan interest rates as well. So, if you choose to take a loan to finance the purchase of a two wheeler, then here are some of the main benefits you need to know about.
1. Instant Disbursement of Funds
Most two wheeler loans are disbursed into your loan account within a couple of days. This eliminates the need to save up for several months or even years to buy a two-wheeler. When your bike loan is approved, the lending institution usually remits the funds to your loan account within just a few days. Some lending institutions even pay the dealer or showroom directly on your behalf. This means you can begin owning the bike or scooter from the very first day.
2. Multiple Payment Options
Banks and NBFCs that grant two wheeler loans usually offer a multitude of loan repayment options. In most cases, repayment is through Equated Monthly Instalments (EMIs). You can keep paying these EMIs for a period of 12 to 60 months, whichever suits your monthly budget. You may even get the option to make partial repayments to further reduce the monthly burden of EMIs.
3. Competitive Interest Rates
Since there is a high demand for bike loans among individuals looking to purchase a two wheeler, banks and NBFCs tend to offer very competitive bike loan interest rates. However, this interest rate also depends on your credit score and overall credit history. If the lending institution conducts a hard inquiry and finds that you have a history of repaying on time, you may be offered a lower interest rate.
4. Minimal Documentation
Another benefit of taking a two wheeler loan is that most of these loans today have minimal documentation requirements. This means you will have to produce only a handful of documents to the lending institution. These may include, but are not limited to, your Aadhaar Card, PAN Card, income statements such as a salary slip or a bank account statement. Remember that when applying for a bike or scooter loan online, you must always upload digital copies of these documents.
5. Improve Credit Score
Another benefit of these loans is that they can help you improve your credit score in the long run. At first, your credit score may be reduced because of a hard inquiry while taking the loan. However, timely payment of EMIs towards your two wheeler loan demonstrates good financial discipline, which directly translates to a better credit score in the future.
6. Save Your Savings
If you choose to purchase a two-wheeler on EMIs, it can significantly help your cash flow. A loan amount approved by a lending institution can also reduce the burden of shelling out a large sum of money all at once. So, even if you have to pay almost half of your monthly salary, the remaining portion can be saved or invested wisely.
7. High Loan Amount Availability
Depending on your eligibility, some lenders offer up to 100% of the on-road price of the bike. This means you may not even need to make a down payment. It makes owning a new bike more affordable and within reach, even if you haven’t saved up a large amount.
8. Special Offers and Discounts
Lenders often partner with bike manufacturers and dealers to provide special deals. These may include lower bike loan interest rates, zero processing fees, or free insurance. If you apply during a festive season or promotion period, you can enjoy even more benefits.
The Takeaway
Getting a two wheeler loan is a smart and practical way to buy your dream bike without straining your finances. With flexible repayment plans, competitive bike loan interest rates, and quick approvals, the process is easier than ever.
Before applying, compare different loan offers, check your eligibility, and use an EMI calculator to plan your budget. This way, you make the best choice and enjoy your new ride stress-free.
Owning a bike is no longer just a dream—it’s a decision you can make confidently with the help of a two wheeler loan.