Two-wheelers are the most preferred and widely used means of personal transport across India. It is equally popular among people living in villages, towns, cities, and metros. The reasons for its widespread use are they are easy to drive, smooth to maneuver in traffic, pocket-friendly, fuel-efficient, available in various colors, designs and brands, safe, less maintenance-oriented and sturdy – the list is long. It is a conveyance of choice for a small family and people across genders and ages.
While buying a two-wheeler, you have an option of buying in cash or availing a two-wheeler loans. A bike loan is the funding you can avail from the lender to buy your dream scooter or bike. The choice between buying in cash or availing a two-wheeler loan will not be difficult once you know the various benefits of this loan.
Here Are Five Advantages For Your Consideration:
Fewer burdens on your pocket
Buying your bike in cash requires enough savings or cash on hand; this may not be possible for every buyer. Secondly, even if you have the money to pay in stock, you have other impending expenses that need priority. A bike loan is an easy way out in this situation. You do not have to invest the whole amount at a time; instead, you can pay for your bike in pocket-friendly installments. The installment amount can also be tailor-made to suit your repayment capacity.
The secure processing, quick approval, and fast disbursal
What else do you want? Even if you cannot wait to bring home your dream bike and show it off to your friends, there is no need to buy it in cash. A bike loan has an online application facility, needs least documentation, secure in processing, quick approval, and fast disbursal. The lender would deposit the loan amount in your account the moment it gets sanction. You can own a two-wheeler in no time without making a dent in your pocket.
Competitive interest rates
Various lenders offer bike loans at competitive interest rates due to cut-throat competition for the higher market and client share. You can avail a two-wheeler loan at a desirable and affordable rate of interest if you can negotiate well. The interest rate generally depends upon your employment type and status, the price of the two-wheeler you wish to buy and the loan tenure that you select. If you have proper eligibility, you can even have a say in the rate of interest on your loan amount.
Exemption from Tax
You are eligible for tax exemption on your two-wheeler purchase amount under section 80C if it is for business purpose and is in the name of your business firm. A freelancer or a self-employed individual who is using a two-wheeler for professional reasons can also get tax deductions on fuel usage and the maintenance cost of the two-wheeler.
Availing a bike loan has many various benefits which make it more attractive, like:
- High loan amount to facilitate the purchase of a high-value bike
- Free Insurance cover or payment of few premiums
- Boost to your CIBIL score if you pay your installments regularly
- Free accessories
- Colour choice without any extra amount
- And sometimes free petrol
One is always at a dilemma when it comes to taking a loan as it is a type of liability. But as it is evident from the discussion, it is advantageous to avail a bike loan to buy a bike rather than to buy it in cash. Bike loan offers multiple benefits and avoids extra burden on your budget planning.