With the ever-increasing population of metropolitan cities, hectic traffic jams have become a common thing. Reaching work is getting more challenging. In such times, a two-wheeler can help you navigate through daily traffic. Also, the social distancing norms enforced because of the COVID-19 pandemic is compelling people to depend on two-wheelers to conveniently commute to work every day.
Whether you want to make your daily commute hassle-free or go on a long trip through the rough terrains of the Himalayas, a two-wheeler can be the most practical means of travel. Not everyone can afford to buy a two-wheeler due to the current financial instability induced by the pandemic. However, it does not mean that you should give up on your dreams if you can get the best two-wheeler loan without putting any burden on your finances.
What is a two-wheeler loan?
A two-wheeler loan is an unsecured loan that enables you to buy your favorite bike without undergoing financial stress. With affordable interest rates and flexible loan tenure, you can make easy repayments, eliminating any burden on your savings.
You can get up to 100% of the vehicle’s on-road price as a loan. The interest rates start from as low as 0.99%, depending on your age, income, credit score, etc. The best part is that you can use a two-wheeler loan EMI calculator to determine your affordability before applying for a loan.
Reasons to apply for a two-wheeler loan
- Less financial burden
Before buying your dream bike, you might have already made your mind the kind of two-wheeler model you need – a bike that comes with great visual appeal, a robust engine, and great mileage. You can use your savings to buy your favourite bike, but at times, even your savings is not enough and may even restrict you from buying your dream bike.
However, the best two-wheeler loan can help you buy your dream bike and reduce any financial burden. As you can repay the loan amount with interest in flexible equated monthly instalments (EMIs), there won’t be much difficulty in making repayments from your monthly income.
- Attractive interest rates
Buying a two-wheeler from the Indian market is easy, as the interest rates have significantly declined over the few years. Based on the eligibility factors, you can get attractive interest rates and repay the loan amount without making any defaults or delays. Some lenders may even offer 0.99% as an interest rate, thanks to the competition in the two-wheeler market.
It is worth noting that the two-wheeler interest rates depend on factors like your age, income, credit history, current financial obligations, etc. Having a stable income and a healthy credit score can get the most favourable interest rate. It enables you to negotiate with your lender and get the best deal available.
- Determine your EMIs
When you apply for the best two-wheeler loan, you are bound to make repayments within the stipulated EMIs. You will have to ensure making on-time repayments. Failure to do so will lead to late payment penalties and may even harm your credit score. So, it would be wise to assess your needs and affordability before getting a loan.
To determine how much you can pay as EMIs, you will need to use a two-wheeler loan EMI calculator available on your lender’s website. The calculator has three main components – loan amount, interest rate, and loan tenure. If you are not satisfied with its result, you can alter changes in the values of the said components to reach an EMI that you can afford to pay every month. This way, you can plan your monthly budget and ensure on-time repayments.
- Tax benefits
Yes, it is true. The best two-wheeler loan can get you tax benefits. However, there is a catch. You can avail of tax deductions if you are using your bike for your business purpose. So, if you are applying for a two-wheeler loan as a self-employed individual, you are eligible to avail of tax benefits on your bike loan interests.
On the other hand, you can avail of other benefits if you purchase the vehicle in your company’s name. For instance, you can save significantly on bike insurance, fuel, and maintenance. These expenses can be deducted from the company’s profits.
If you want a bike but lack money to buy your dream bike, you can apply for a two-wheeler loan to manage your finances without touching your savings or investments.