Motorcycles and scooters are a vital part of daily life for many indians, offering convenience, affordability, and fuel efficiency. With rising prices of bikes and the growing desire to own a vehicle, bike loans have become a popular option for many. Here are the top 5 things you should know about bike loans in India:
1. Easy Accessibility of bike Loans
Getting a bike loan in india is relatively easy. Most banks, non-banking financial companies (NBFCs), and online lenders offer quick and straightforward loan processes for motorcycles and scooters. Whether you're buying from a dealership or online, you can access two-wheeler loans with minimal documentation.
Key Requirements:
· Proof of identity (Aadhaar, PAN card)
· Proof of address (utility bills, rent agreement)
· Proof of income (salary slips, bank statements)
2. Affordable Interest Rates and Flexible Repayment Terms
One of the major benefits of bike loans is the competitive interest rates. Depending on your credit score and the loan provider, interest rates can range from 9% to 15% annually. Additionally, lenders offer flexible repayment tenures, usually ranging from 12 months to 5 years, which gives borrowers the freedom to choose a plan that fits their financial situation.
Top Tip: Opting for a longer tenure can reduce monthly EMIs but may increase the total interest paid. Evaluate your budget carefully before making a decision.
3. Loan Amount Based on Vehicle Price and Borrower’s Profile
The loan amount you can borrow will depend on several factors:
· Bike Price: Lenders typically offer up to 90-100% of the on-road price of the bike.
· Your Credit Score: A higher credit score (750 or above) can help you secure a better interest rate and higher loan amount.
· Income: Your monthly or annual income plays a crucial role in determining your loan eligibility.
Example: If the bike’s price is ₹1,00,000, you could borrow up to ₹90,000, with the remaining ₹10,000 to be paid as a down payment.
4. Down Payment and Loan Disbursement
While most bike loans cover up to 90% of the bike’s price, you’ll typically need to make a down payment of 10-15% of the total cost. This reduces the loan amount and the burden on monthly EMIs.
Once approved, loan disbursements can be fast — often within 24 hours for salaried individuals. The loan amount is typically disbursed directly to the dealership or your bank account, depending on the lender's policy.
5. Advantages of Taking a bike Loan
Bike loans come with a host of benefits, making them an attractive financing option for many buyers:
· Instant Ownership: bike loans help you own your dream vehicle without waiting to save the full amount.
· Tax Benefits: If you use the bike for business purposes, you may be eligible for tax deductions under Section 80C.
· Build Credit Score: Timely repayment of the loan can improve your credit score, which will help with future loans.
· Convenient Online Applications: Most banks and lenders offer online loan applications, making the process quick and hassle-free.
Conclusion:
A bike loan can be an excellent way for many indians to own a motorcycle or scooter without draining their savings. With easy accessibility, affordable interest rates, and flexible repayment terms, bike loans provide an ideal solution for those looking to enhance their mobility. Just remember to evaluate your financial situation, compare different loan offers, and read the terms and conditions carefully before committing to a loan.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
click and follow Indiaherald WhatsApp channel