Many households still perceive loans as a massive burden on their finances. However, little do they realize that loans can be the solution to many of their financial issues. These days, NBFCs have significantly eased their eligibility conditions, making loans more accessible to the masses.
One such loan is a two-wheeler loan. It is a customer-friendly loan with low interest rates and easy repayment options one may choose by using a two wheeler loan EMI calculator. Some NBFCs even provide zero down payments on two-wheeler loans, allowing borrowers to bring their bikes home without paying anything for them. Here are six amazing benefits of two-wheeler loans that make your life easier.
Benefits of Two Wheeler Loans
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Takes Off a Huge Financial Burden
Availing a two-wheeler loan saves the borrowers from a financial dilemma. They can keep their savings intact, fund the bike purchase with a loan, and repay it in easy EMIs suitable to their budget. Many NBFCs cover a significant percentage of the bike purchase with a small down payment. Some even offer the zero down payment loan option to select applicants. Many of them also do not have any pre-payment or extra charges.
Most lenders offer competitive interest rates that borrowers can afford without stressing their finances. Besides that, they don’t need to pay any down payment if they qualify for a zero down payment bike loan.
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Helps Improve the Credit Score
Usually, the cost of a two-wheeler is significantly less compared to a car or home. Therefore, the lower loan amount has easier EMIs that the borrowers can easily repay on time. With regular EMI payments, borrowers get a good chance to improve their credit rating and become eligible for a more considerable loan amount at lower interest rates. Therefore, it becomes a good credit option for young professionals who are still on their way to building their credit records. However, they can achieve this improvement only if they repay their EMIs on time and maintain a consistent repayment history.
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Attractive Interest Rates
Bike loan interest rates may vary depending on the NBFC’s policy, bike specifications, and the borrower’s income, employment, and other conditions. Due to increasing demand and competition in the two-wheeler segment, many NBFCs provide competitive interest rates on bike loans.
An applicant may get the lowest interest rate for a bike loan by reducing their DTI ratio, increasing income sources, maintaining a consistent employment record, and fulfilling other conditions the lender sets. Lower interest rates make bike loans easier to access and repay without stressing the borrower’s finances, thereby making their life easier.
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Easy EligibilityÂ
Due to increasing competition in the Indian two-wheeler market, NBFCs have made bike loans much easier to avail. Applying for a bike loan is no longer arduous for an Indian resident with a regular income and stable job. Lower loan amount keeps EMIs easy to repay, making bike loans more appealing to the masses rather than spending money from their savings.
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Flexible EMI Repayment
Most NBFCs are flexible about their repayment terms. Once a borrower avails of a bike loan, they may use a two-wheeler loan EMI calculator to calculate their monthly EMIs and select a repayment tenure suitable to their monthly budget. A longer loan term means smaller EMIs, and a shorter loan term means bigger EMIs. The borrowers may assess their repayment capacity and select a loan term with EMIs they can conveniently afford each month.
- Instant Loan ApprovalÂ
Prospective borrowers no longer need to wait for weeks and visit the lender’s office several times before getting their loan approved. These days, most NBFCs support digital loan application procedures that an individual may complete from their home without any manual labor. A 100% online application process means no paperwork. The borrowers just need to scan and upload the necessary documents through the lender’s website or app.
Once the lenders receive the application, they verify the details provided online, which takes a few minutes to complete. So, the borrower gets instant approval for their loan and disbursal within a few hours.
With changing laws and policies in the Indian two-wheeler segment, buying a bike is no longer a luxury people cannot afford. Every year, the loan approval and accessibility process become more manageable, making two-wheeler loans easier to avail. With all the benefits mentioned above, no one will stop a person from getting a two-wheeler loan. However, be sure to use a two-wheeler loan EMI calculator to select the best loan offer and keep repayment easier on the budget.
