What is the Best Way to Finance a Bike or Two-Wheeler in India?

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Looking to buy a two-wheeler to commute to work? Saw your favorite bike model in the showroom but too highly priced to possess it? Well, the good news is that you can now make all your dreams come true by getting an easy loan on buying two-wheelers and bikes. Read more to know best way to finance a bike or two-wheeler in India.

With traffic increasing on the road by the day, a two-wheeler is by far the best mode of transportation in cities. It is your go-to vehicle for all forms of commutation, short or long-distance. And when you want to flaunt a little bit of style as well, while enjoying convenience, there’s always the good ol’ motorbike – stylish and handy – again for any measure of distance. There’s only one little problem here. Bikes and other two-wheelers don’t always come in that cheap. When you want one real bad, what to do then? We will tell you all about way to finance a bike or two-wheeler in this blog.

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Best Way to Finance a Bike or Two-Wheeler in India

So you’ve been wanting a two-wheeler or your favorite model of bike for some time now but it seems too heavy on the pocket to afford. Well, you don’t need to put off or give up on the idea of buying one because you now have a simple, hassle-free way of paying for your dream two-wheeler.

Getting a bike loan is one of the most convenient ways today of financing the vehicle. Further, with a large number of banks and other financial institutions offering easily repayable bike loans to their customers today, this dream only seems achievable in no time.

There are two ideal ways in which you can finance your bike living in India:

  1. Applying to a reputed bank for a two-wheeler loan
  2. Securing a loan from a Non-Banking Financial Company (NFBC)

These two organizations offer loans to customers fairly easily and are therefore the best go-to options for finance. Moreover, all two-wheelers in India are sold on on-road price, which the banks and NFBCs finance for. This means that the buyer can easily purchase the vehicle on zero down-payment!

7 Features of a Two-Wheeler Loan in India

A bike loan comes with the following features, which are good to know before applying for one:

  1. The registration charges for the two-wheeler are included in the bike loan, which means no extra payment for the buyer. Besides, the amount to be paid for the bike insurance policy (mandated to be purchased at the time of buying the two wheeler) is also inclusive in the loan. This is very helpful to the bike owner because they do not need to pay separately for any of these amounts; it is all covered in the EMI for the loan.
  2. The interest rates applicable on bike loans generally vary between 9% and 26%, depending on the credit score of the borrower, their age, source of income, type of employment, relationship with the bank, and the like.
  3. A loan taken from a bank or financial institution for financing a two-wheeler is a secured loan because the two-wheeler or bike is the collateral security against the loan.
  4. The total duration for a two-wheeler loan is generally up to 4 years, sometimes extending even up to 5 years. The borrower is allowed the flexibility to choose a loan tenure based on their repayment ability.
  5. If you already have an account opened in a bank, you can easily apply for a loan in the same bank because it would prefer giving loans to existing customers. Besides, the loan money will be instantly transferred to your account and can be easily accessed.
  6. Most bike or two-wheeler showrooms have tie-ups with banks and other financial institutions so you can actually apply for a bike loan right at the time of buying the bike at the showroom.
  7. There is minimal documentation involved in applying for a bike loan, which makes the whole process simple and hassle-free for the applicant.

Documents Required to Finance a Bike or Two-Wheeler in India

As stated above, the documentation involved in a bike loan application is quite minimal. All that the applicant is expected to provide at the time of applying for the loan includes:

  1. Identity proof by way of providing copies of passport, driving license, voter’s ID, or PAN card
  2. Proof of income by providing copies of the latest salary slip, bank statement, or IT return filed. In case the applicant is self-employed, they would need to provide audited financial statements as well.
  3. Proof of residence by way of providing copies of passport, utility bills, or anything else that mentions your complete residential address.

6 Benefits of Applying for a Two-Wheeler Loan

We do understand now that in order to easily finance a first-hand two-wheeler of your choice, applying for a loan is a fairly convenient choice. However, the word ‘loan’ can make a person feel uncomfortable at times. Let’s discuss some of the benefits of availing a bike loan which can actually do more good to you than you’d imagine:

  1. Most bike and two-wheeler loans can now be availed at easily affordable rates of interest. This makes them attractive to prospective bike buyers.
  2. By securing a loan, you can easily buy the two-wheeler or bike model of your choice without a worry. There’s no need for any compromise to buy the vehicle of your dreams.
  3. If you want to get a little more adventurous, you can even consider buying superbikes through easy bike loan options.
  4. The loan also provides for easy repayment by way of EMIs (Equated Monthly Installments). These EMIs come in easily affordable amounts which the borrower can pay at their own convenience without imposing a financial burden on themselves.
  5. Timely payment of EMIs helps you build a good credit score which in turn can help you secure the next loan easily in future.
  6. Most two-wheeler loans provide flexibility with regard to repayment periods. The borrower can choose the duration as per their convenience.

Read More: Latest Two-wheeler Loan Interest Rates in 2022, Bike Loan Rates

To Conclude

Motor vehicles are a necessity in today’s busy life; however, they do seem difficult to afford at times, considering the skyrocketing prices of some bikes and two-wheelers. Now, to buy the bike or two-wheeler of your choice, you’d never have to strike a compromise and settle in for the lower-priced model. With so many benefits on offer, securing a bike loan is literally child’s play, allowing you to enjoy your dream ride on your dream bike without a worry on your mind.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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Sep 08, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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