Having a two-wheeler or a reliable mode of transportation is no longer a luxury but a necessity. They are the most practical option, whether it be the daily commute to work or going out to buy groceries.
The alternatives are to take public transportation like a bus or the metro, which are very inconvenient and unreliable. You can also take an auto or an Uber, which are again subject to availability and can end up costing quite a bit.
These are just some of the logical reasons that getting a two-wheeler makes sense. When deciding what bike to buy, it is also essential to determine how you are going to pay for thevehicle.
Most potential buyers prefer taking bike loans as they make more financial sense and often work out cheaper than paying for the asset out of pocket. These are just a few reasons why bike loans are better than paying in cash.
Advantages Of Availing A Bike Loan
Low Interest Rates
Most lenders like Bajaj Auto Finance give very low interest rates when dealing with purchases of large amounts of fixed capital. These low-interest rates also differ on the basis of your income as well as the EMI amount.
To calculate your prospective EMI, you can use an online bike EMI calculator to give you a close estimate. With the rising demand for two wheelers, most lenders have reduced the interest rate to promote paying with loans.
Most people save for years to be able to afford a bike with a loan; you do not need to save for years. You have to be able to afford the very reasonable monthly EMI that can vary from place to place, and so can the number of instalments and interest rate.
Applying for a bike loan is no longer a tedious task; you can now apply for loans online through bank portals. If your bank account has a sufficient balance of funds according to the bank’s policy, you are likely to be approved.
There is also a check into your financial transactions, and credit score before the loan is approved by the bank.
Paying for the vehicle in a lump sum out of pocket can sometimes cause an unnecessary financial burden. With a loan, you can retain a significant liquid corpus in case any emergencies that require you to pay out of pocket arise.
This also allows you to properly budget your expenditure as you only have to pay a certain amount monthly. This amount depends on your instalments that you can calculate using a bike EMI calculator.
Getting a loan also ensures that you do not need to dip into your savings to afford a new bike.
When getting a bike loan, it is always better to get a higher amount of your loan for additional expenses. This is why when quoting the amount, you should get the on-road amount instead of the showroom amount.
This gives you additional wiggle room in paying. If you do not end up using this additional amount, although most people do, you can just put it forward as the first instalment of your monthly EMI.
Getting a bike loan allows you tax benefits in the form of tax breaks because of interest repayments. You can also claim depreciation on the bike. Furthermore, if you are self-employed, you are allowed to deduct insurance, fuel, interest payments, and any additional maintenance from your profit for the fiscal year.
Lenders like Bajaj Auto Finance also provide other benefits as incentives to get a loan from them. They provide insurance at very competitive prices. The insurance is either regular insurance or accident insurance.
Bajaj Auto Finance has helped people all over India become car owners and bike owners through their competitive loan prices. With many years of experience and trust, your money has never been in better hands.