Buying a dream bike is in the bucket list of every young individual. To obtain your dream bike, you often start making compromises to reduce expenditure and set aside some cash. But not anymore. You now have prudent reasons to opt for a bike loan and easily purchase your dream bike without compromising on a monthly budget. One important factor to consider is the bike loan interest rate. But it would be better if you also consider other factors like EMIs, repayment tenure, and processing fees. Obtaining a loan has numerous advantages.
We often wonder whether it is preferable to purchase a bike using a loan or through cash. Following reasons make it very clear to opt for a bike loan while buying your dream bike:
1. Freedom to purchase your desired model
You might want to buy a bike for your daily commute and have your eyes set on a model. Buying it using a loan would get you the bike of your dream and put your monthly budget targets at ease. Using a loan, you get the desired bike with all the visual appeal and all other features. The loan covers almost 90% of the cost and gives the freedom to choose any bike you dream of buying.
2. Alluring interest rate
The high demand for bikes in the country has caused the two wheeler loan interest rate to decrease significantly. Financial institutions are competing in terms of providing the most affordable rate of interest to the customer. The interest rate depends upon many other factors like employment type, income level, price of the bike, etc.
3. Quick approval of loans
Most financial institutions’ online process lets you apply for the loan in a hassle-free manner. It is simple to get financing to purchase your bike. Eligibility criteria posed for an online loan application are minimal. The online procedure involves minimal paperwork that indeed speeds up the disbursal process. The documentation and verification process is quick, with the amount quickly getting disbursed in your account. Hence, you have the bike at your doorstep without waiting for your savings to add up.
4. Boosts your credit score
Bike loans are affordable and reasonable in terms of interest rate and repayment. Repaying your loan within the stipulated time adds reasonably well to your credit score. A high credit score makes you eligible to buy bigger loans with low-interest rates in the future. This is a good start to build your credit score and reap the benefits for a young individual.
5. Flexible repayment options
Selecting the repayment tenure is at the borrower’s discretion, and the financial institutions have flexible options available. To choose repayment tenure is a critical task. Selecting a tenure too short may decrease your net interest payments but will overburden your budget. And a tenure more than required will reduce the value of EMI but increase your interest payment. Thus, select a repayment tenure only after calculating and analysing your finances.
6. Lessen the financial burden
Financing your purchase using a loan will reduce the financial burden. You will no longer have to keep aside a particular amount every month and compromise on your monthly expenditure to buy your dream bike. Instead, the savings invested elsewhere will continue to reap the benefits of your long-term financial goals.
Financing through loans while purchasing your dream bike reaps various benefits. The reasons mentioned above are enough to make your buying experience convenient. The most obvious reason is that you will not have to invest any amount out of your savings. Apart from the low bike loan interest rates, you get other benefits like an insurance cover and the loan. In this environment, where financial institutions compete to provide the most affordable interest rates, you can quickly negotiate on processing fees and interest rates.