Something as simple and natural as walking can be quite the ordeal in India, what with non-existent sidewalks, buses trying to mow you down and open sewers literally reaching out to drag you down into their gaping maws. You’re also sick and tired of cramped buses and rickshaws taking you for a ride halfway around the world. But, there really isn’t much else you can do except grit your teeth and plough through to reach your destination.
You gaze in envy at all the fancy air-conditioned cars zooming by, but you know deep down that you can’t really afford one of those at the moment, or maybe for the next foreseeable decade considering the state of your finances. However, you can certainly afford to take out a two-wheeler loan and get yourself a sturdy bike that can withstand the rigours of Indian roads and their Mars-like surfaces.
Luckily for you, a Two-wheeler Loan is an extremely affordable and convenient option, especially in this day and age. So, all you need to do is rest your weary legs and let us ‘walk’ you through 10 benefits that a two-wheeler loan can offer you.
Advantages of opting for a Two-Wheeler Loan
- Resale Value – Since two-wheelers generally have a much better resale value after a substantial period of time as compared to cars, it is entirely possible to start planning the purchase of a brand-new vehicle right after you have completed making your repayments towards your initial loan.
- Lower Financial Burden – Purchasing a two-wheeler in one fell swoop could place a great deal of stress on your finances, especially if you’re already treading choppy waters monetarily. With a Two-wheeler Loan, you can spread your repayments out over a period of time, leaving you with enough funds to meet your monthly expenses. In fact, you could also use some of the money to invest in Mutual Funds, Fixed Deposits or to purchase Insurance.
Additional Reading: What To Remember When Investing In Mutual Funds
- Convenience – Since the cost of maintaining a two-wheeler is significantly lower in comparison to four-wheeled vehicles, paying instalments towards your loan should be fairly straightforward considering you won’t have too many extra expenses to slow you down. It is more than likely that the only extra expense you will incur is the cost of petrol every month, which shouldn’t be too much of an issue since most bikes have decent mileage.
- Options – Not only are there a ton of options to choose from, banks also offer extremely attractive and affordable interest rates and even club insurance products with the Two-wheeler Loans they offer you. It’s almost like killing two birds with one stone.
- Margin of Finance – In general, the majority of Two-wheeler Loans require you to make a down payment of just 10%. This is a mere pittance when you take into consideration the price of bikes nowadays.
- Flexibility – Two-wheeler Loans offer flexibility of tenure, making it easy for you to pay back your loan over a duration that suits you financially. Tenures may range from 12 months to 48 months, making it especially advantageous if you find yourself a little strapped for funds. By choosing a tenure that comfortably meets your requirements, you can make your loan repayments without too much hassle.
- Credit Score – If you are looking to take out a loan for the very first time, a Two-wheeler Loan could be a great way to kick-start your Credit Score. Since these loans are relatively easy to pay off within a short span of time, you can ramp up your Credit Score fairly quickly. And, since the chances of defaulting on a Two-wheeler Loan are pretty slim, your Credit Score will not be negatively affected in any way, making it easier to apply for other loans in the future.
Additional Reading: How To Maintain A Good Credit Score
- No Prepayment Charges – Most banks that give out Two-wheeler Loans don’t charge customers any prepayment of foreclosure fees, as long as you pay back the full amount by the end of your loan tenure. This can be of great benefit, especially if you want to pay off your loan early. This way you can get rid of your outstanding dues at a much quicker pace, leaving you debt-free before you know it.
- Extra Coverage – Most Two-wheeler Loans also offer to take care of the cost of any extra expenses such as insurance, registration and even accessories. This is an extremely attractive feature of Two-wheeler Loans since you are, in essence, availing of finance not just for the vehicle but even for any extra essential expenses.
- Affordable – Even if your annual income isn’t too much to write home about, you can still avail of a Two-wheeler Loan since the monthly instalments shouldn’t place too much stress on your monthly budget. By opting for a long tenure, you can make affordable repayments towards your loan without significantly impacting your finances.
If these advantages don’t convince you to trade your walking shoes for a pair of tyres, then nothing will. Now all you need to do is get out there, get yourself a bike and feel the breeze course through your hair. Keep your helmet on though!
Additional Reading: 10 Safe Riding Tips For Two-Wheelers In India