The Road to Freedom: How Bike Finance Empower Commuters

Are you fed up with living in busy schedules and paying ridiculously high cab fares during rush hours? Are you frustrated by not getting an auto-rickshaw when you need one the most? You may eliminate all these hassles by buying a two-wheeler. Don’t worry about the finances, as a 2-wheeler loan makes purchasing a bike no longer a far-fetched dream. Certain premium motorcycles may come with substantial price tags, and that’s precisely where a bike loan can be incredibly helpful.

Bike finance empowers commuters by offering them an affordable and convenient way to bring their favourite motorcycle home. Even if you have money to pay the cost upfront, you should finance it with a loan due to its many practical benefits. Let’s take a look.

Hedge Against Financial Crunches

Even if you have money in your bank account, it’s not wise to exhaust it all at once. Since an emergency never arrives with a warning, it’s better to keep it intact. That’s why borrowing a bike loan is a smarter choice, as it will save you against financial crunches in case of a cash deficit. Moreover, if you find the EMIs on a higher end, you may bring them down by making a bigger down payment and opting for a longer repayment tenure. The reduced instalment amount will make repaying the loan easier for you.

Enhances Your Credit Score

A decent credit score is essential for loan approval. If it is low, a bike loan gives you an opportunity to boost it. Generally, the instalments are on the lower side, which reduces the chance of default. When you completely pay off the loan, it will positively reflect in your credit report. A higher credit score you accumulate with prompt EMI payments helps achieve quick loan approvals at better interest rates in the future. Remember, you will also own your dream bike, which is like hitting two targets with one bullet.

Buy a Better Motorcycle Without Compromises

Saving money for a bike purchase takes time. During that period, you miss the chance to get the motorcycle you want. Furthermore, considering the rising prices, the money you save may fall short of purchasing your dream bike. It often results in either compromising the choice of your motorcycle or delaying the purchase. Conversely, with a 2-wheeler loan, you no longer need to wait to bring your favourite bike home.

Thanks to digital advancements in the fintech sector, you can get the required funding instantly through bike loans available online. All you need to do is fill out an online application form and upload soft copies of the necessary documents. Moreover, instant access to the required funding comes with an affordable bike finance interest rate, ensuring no stress on your finances.

No Effect on Monthly Budget

Rather than spending your savings on a bike purchase, getting a bike loan is the better way to face a financial dilemma. When you need financial support, borrow a loan. Repay the same in easy instalments and ease your financial burden over time. Paying a small EMI each month is much better than exhausting your savings and living in a cash-strapped situation. Apart from resolving your cash shortage, a bike loan also leaves you with enough funds to handle an emergency and cover other financial obligations.

Develops a Sense of Financial Discipline

No matter how much you earn, inculcating a habit of financial discipline is essential to living a stress-free life. When you know you must set aside a part of your income to pay the bike loan EMIs, you will develop a habit of saving for fear of paying penalties. Missing EMI payments also results in increased interest costs, leading to a financial loss.

As you pay the EMIs for a few years, you develop the habit of saving and controlling unnecessary expenses that stays with you for life. If you activate the e-mandate, you make sure you save enough to maintain a particular balance in your bank account, convincing you to create a budget and cut down avoidable costs. Overall, borrowing a bike loan will make you smarter in your expenditures, helping you develop the habit of saving money.

Invest Your Money Somewhere Else

Even after saving for long, the funds may still be insufficient to purchase the bike you want. However, a 2-wheeler loan offers instant financing to get your dream bike immediately. Moreover, the affordable bike finance interest rate makes it an affordable option. Since a bike loan allows you to keep your savings intact, you can invest the accumulated money in other investment avenues that offer higher returns than your borrowing cost. So, instead of exhausting your savings on a bike purchase, you can use the money to build a corpus and plan financial growth.

Enjoy the Benefits of Bike Loans

Bike loans come with several advantages that make financing beneficial for you. These include the following:

• High Loan-to-Value (LTV) Ratio: Reputable lending institutions finance up to 95% of the bike purchase, allowing you to purchase the bike of your choice without paying its cost upfront.
  
•  Low Down Payment: A high LTV ratio means you can finance a large part of the bike’s cost while paying only a small amount from your pocket
  
  
• Affordable Bike Finance Interest Rate: Compare interest rates from various lenders and opt for the lowest one to save money in the long run.
  
• Flexible Repayment: Using a bike loan EMI calculator, you can choose a repayment term with EMIs you can easily adjust into your monthly budget.
  
• Tax Benefits: Borrowing a two-wheeler loan makes self-employed professionals eligible for tax benefits, as you can claim a deduction on the bike loan interest amount. They can deduct the insurance, maintenance, and fuel costs from the profits.