How about owning your first bike? What are your financing plans? Are you thinking of applying for a loan? Owning a bike has become a necessity these days. A good number of India’s population comprises youngsters, both young professionals and the college-going lot. Most of them prefer to commute to college/ office by a two-wheeler for the convenience it offers in terms of usage. What else sounds better than applying for a bike loan online while planning to buy your first bike? it’s an easy process and hassle-free. The moment you contact the lender, you are put through a process that includes submitting certain documents required for a bike loan. We will talk about the specifics later in this article.
Why should you go for a bike loan?
Opting for a bike loan comes with its own benefits. It is undoubtedly the easiest way to own your first bike. Let us look at some of the reasons why it is better to go for a bike loan
Help in managing your finances in a better way
Taking a loan for your bike helps you to be free from the burden of paying the whole amount in bulk. You pay the loan in EMIs, which facilitates saving the rest of the amount. The extra amount can be used to meet future needs.
Ensures in bringing financial discipline
While you pay your EMIs, paying the full cost of the bike is delayed, which helps you to save the remaining amount. It ensures financial discipline.
Taking a bike loan will help you get tax exemptions by getting tax deductions on the amount of interest. In this way, you are better off when compared to going for one-time spending.
As bikes are cheaper compared to cars, the amount of loan you will need is also comparatively low, eventually helping you to enjoy lower interest rates. Moreover, if you share a good rapport with your relationship manager, then you can bargain for better interest rates.
Some of the documents required for a bike loan?
Every financial institution has a specific checklist of documents to be submitted while applying for a bike loan. Some of the important documents include:-
- ID proof – Aadhaar Card/PAN Card,
- Address Proof- Utility bills
- Income Statement – Salary slips
Some points to remember while applying for a bike loan
Before you apply for a bike loan, there are certain things you have to keep in mind-
- Plan your bike purchase in advance. Do some amount of research on the available models and decide on the one that best fits your budget.
- Conduct an analysis of your finances, and watch out for your credit score to know the possibility of loan approval. This can help to avoid confusion in the later stages. Do not apply for a loan if you sense that it would turn into a financial burden.
- Verify your information before submitting the loan application. Any incorrect information provided would prove to be a rejection of your loan application.
- Check the available repayment options. Also, do not apply for a loan because there are some attractive offers.
- Read carefully, the loan agreement, before signing it.
What are the interest rates for a bike loan?
Buying a bike is easier than going for a four-wheeler. The cost involved is much less. Therefore, the interest rates for bike loans should also be comparatively less. The interest rates for a bike loan vary with lenders. However, in India, a bike loan is available at an interest rate ranging between 9% to 20 %. These rates can be lowered based on your past repayment history and the amount of down payment you are ready to pay.
There is not much difference between applying for a loan online. You need to fill in the application available on the lender’s website. After submitting the filled-in form, you should upload all your documents such as ID proof, address proof, etc. Based on the application submitted by you, the loan will be approved within a span of 28 to 48 Hrs. It’s easier than you can think.
Now you know how to apply for a bike loan online, why don’t go forward and do it? Buy your first dream bike, and make your dream come true. There are financial institutions that offer you competitive rates on a bike loan. Some of the best financial institutions in the country offer loan features like- Loan amounts starting from Rs 10,000 to Rs 1,00,000, LTV ratio of up to 95%, Low and attractive interest rates, Flexible tenure up to 48 months, Available for salaried and self-employed individuals, there are several repayment modes such Cash, ECH, NACS.