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While you may think that saving up to buy your bike may be better than taking on debt, there are a few reasons that make a bike loan a smarter choice. Moreover, given the time it would take you to save up for it and the rising costs, you may not be able to get the bike you want. Thankfully, bike loans present as a simpler, quicker, and more affordable option.
Today, a majority of lenders offer a competitive bike loan interest rate, making it a viable option for many across the country. Additionally, fintech advancements have made bike loans more accessible and simpler than before.
Read on to know the top benefits of availing a bike loan over making a payment in cash.
Invest the Lump Sum Amount
Given that buying a bike can be expensive, saving up for it can take time. Moreover, even after saving, you do not have the guarantee that you will get the bike you want. However, a two-wheeler loan offers instant financing, enabling you to get the bike you want instantaneously.
Moreover, the majority of lenders offer an attractive bike loan interest rate making it an affordable option. As such, availing a loan and investing the accumulated money in alternatives that offer returns higher than your borrowing costs becomes a better option.
Investments are the best way to plan your financial growth and ensure that you can manage the rising costs. You can use a bike loan EMI calculator to understand your borrowing cost and the amount you will have to repay every month.
Similarly, you can use a calculator for your preferred investment to understand what you stand to earn. This way, you can compare and adjust your borrowings and investments to get good returns and affordable financing.
Buy a Bike Without Compromises
As mentioned, saving up for a bike can take some time. During that time, you may miss out on the opportunity to get the bike you want. Moreover, given the rising costs, the money you saved may no longer be enough to pay for your dream bike.
This would result in you either compromising on your bike or postponing the purchase, which may have the same result. However, with instant access to bike loans, you don’t have to wait for long and get the funding you need in a matter of days if not hours.
Today, due to digital advancements in the finance sectors, lenders offer attractive bike loan offers digitally. All you need to do is fill up the form and upload the necessary documents. Moreover, the instant access comes with an affordable bike loan interest rate, ensuring you don’t put undue strain on your finances.
Improve Your Creditworthiness
Creditworthiness is an essential factor in getting affordable credit easily and without any hassles. While you may prepare yourself and your finances to tide over a crisis without any debt, there may be instances when you would have to rely on credit.
In such cases, if your credit score is not ideal, you may either not get the funding or get it at an expensive cost. Both of these outcomes can put unnecessary strain on your finances. A smart way to boost your creditworthiness is to avail a new credit, such as a bike loan, and make timely repayment.
This gives you a chance to establish a credit line if you do not have one or boost your credit score by showing good repayment discipline. However, making timely repayment is key here, and you can achieve that through a few methods.
While the first one is to choose the lender that offers the best bike loan interest rate, the other option is to plan your finances in advance based on your estimated EMIs. For that, you can use a bike loan EMI calculator and find the terms that are within your budget.
Repay Without Straining Finances
In addition to offering an attractive bike loan interest rate, lenders also offer flexibility in other repayments. This includes the loan tenure and the mode of repayment. When you optimise these aspects, you can find a manageable EMI amount that does not strain your finances.
Moreover, saving for making a full payment on a bike loan would require you to put aside a certain amount of your income. By putting this amount towards repayment, you can get the bike you want without delays or without stretching your finances.
You can find out the ideal amount by using a bike loan EMI calculator. This tool uses your loan terms (amount, interest rate, and tenure) to give you an estimate of your EMIs. Additionally, this is a free tool with no restrictions, allowing you to use it freely.
Avail of Exclusive Add-on Benefits
Today, lenders don’t just offer an attractive bike loan interest rate but also other add-on benefits. These benefits include insurance coverage, which is mandatory in India, or necessary accessories. These exclusive benefits are made available through a tie-up with other service providers.
Moreover, these necessary add-ons can be expensive and may not fit into the amount you have saved. This would then require you to readjust your finances to fit these in your budget, which can delay the purchase.
However, a majority of the lenders would offer these add-ons at a nominal cost, if not free, making it a great option. Additionally, in some cases, the payment for these add-ons would happen with your entire loan amount and not require you to pay anything at that time.
Now that you know the benefits of availing a bike loan over a cash payment, be sure to choose a lender that offers the best bike loan interest rate and has no hidden costs. This will make your financing affordable while enabling you to repay without any stress.
