Loans are a boon for people who are in need of funds. They are easily accessible and take no time to process. Most people today opt for a loan before they make a major purchase. Doing a 9 to 5 job involves tiring commute and a major part of your life is spent traveling. However, owning a two-wheeler is a cheap and efficient alternative to avoid crowded journeys in public transport modes. It is fast, safe, cheap and above all, it is in your control. If you are still sceptical about taking a two-wheeler loan, here are the rewarding advantages that you can benefit from.
Freedom of Choice
You are free to decide the type of vehicle you wish to purchase. The loan does not dictate the model or type of vehicle that you can purchase. Most creditors will have 90% of your loan amount covered. You are required to pay only about 10% of the vehicle cost, which is a very feasible amount considering that it will be fully covered.
Use Your Savings for Expenditures Other Than Investing in Two Wheeler
The intricate value of a loan is that it gives you time. If you were to buy a two wheeler with outright cash, it may prove to be heavy on your pocket. This leaves you with little or no cash left for emergencies such as medical expenses or college funds. With a two wheeler loan, you are essentially buying yourself time. This will greatly ease the financial pressure that you face.
Increase Your Credit Score
If you are planning to take a two wheeler loan, you must take into consideration your credit score. A great credit score can be earned by taking good, affordable loans and repaying on time. This reflects a positive impact on your credit score. A two-wheeler is priced fairly low when compared to buying a house or 4-wheeler and it is very easy to pay off these loans without worrying too much. Hence, with a high credit score, you automatically become eligible for higher loan amounts in the future.
The interest rates for a two-wheeler are very competitive, which means you can easily avail a low-interest option for your two-wheeler loan. In addition, the loan process takes less than a few days to process and has a high approval rate. Due to the nature of the loan, the interest rates are low, the documents required are minimal and the loan processing is very fast.
Annual Earning Leverage
Most loans are restricted to the taxable bracket, which means your annual income must be over a certain minimum amount to be eligible for a loan. The two-wheeler loan is open for people from the lower earning bracket too. For instance, people earning as low as INR 50,000 per annum can also apply for this type of loan.
Flexible Loan Tenure
The borrowers can repay the loan amount in 12 to 48 months’ time. This is a long tenure for a small loan amount like a two-wheeler loan, allowing better management of finances for the borrower without putting any financial strain on their monthly budget.
A two-wheeler loan is a great way to get your dream vehicle and make your life easier. It is easy to obtain and process, especially with the new online availability of loans.