Commuting can be challenging in a hectic daily routine. Long, frustrating bus rides and the inconvenience of public transport can waste your time and drain your energy.
Imagine something that simplifies not just that but, as a by-product, your life at large. Consider bike finance—a way to revamp your journey’s experience and bring freedom and flexibility into your life.
The Problem and the Need to Own a Bike
In our country, many people spend a lot of time and money on their daily commute. According to studies, an average personnel spends about 7% of their monthly income on commuting costs.
Additionally, the time committed to travelling is significant too, with current figures displaying an average travel length of round 50 minutes. Given this context, owning a two-wheeler may be convenient.
Motorcycles and scooters can significantly reduce commute times, allowing more time at home or increasing productivity in roles like sales and marketing, where frequent client visits are crucial.
Let’s explore how to manage bike finance effectively to save on travel time and keep costs affordable.
What is Bike Finance?
Bike finance refers to the various financial options available for getting a bike or scooter. It usually involves taking out a loan from a financial institution or NBFC to cover the cost of the bike, which is then repaid in monthly instalments over a fixed period.
This arrangement permits shoppers to spread the cost of the bike over time rather than paying the overall amount in one lump sum, which can significantly reduce their budget.
By opting for two-wheeler finance, shoppers could buy the bike they love and not settle for a bike they have to buy due to budget constraints.
Why Take Bike Finance?
Taking a two-wheeler loan is generally more budget-friendly as it involves smaller loan amounts and lower EMIs compared to other types of loans. Additionally, consistently repaying your two-wheeler loan on time can positively impact your credit score. An improved credit profile can enhance your chances of securing larger loans in the future, whether for personal, domestic, or business needs.
Additionally, taking out a loan can inspire better monetary control. The obligation of steady payments (as EMIs) fosters cautious spending behaviour.
Moreover, financing options expand your alternatives while it comes to purchasing two-wheelers (bikes and scooters) across diverse price levels. This flexibility makes it easier for you to choose the right model. Even if you buy a bit expensive two-wheeler but it justifies your requirements, there would be a minimal change in the EMIs – not enough to bother your budget.
Bike loan interest rates in India are generally affordable and manageable even with modest salaries.
How to Choose the Right Bike Finance Options?
While thinking about motorbike finance, it is important to evaluate the different options to discover the one that best fits your needs and budget. Here are some tips to guide you:
- Research Different Lenders: Look into various financial institutions and NBFCs and their motorbike finance offers. Compare their interest rates, loan tenure, principal amount covered and any additional offers they may be offering.
- Check Eligibility Criteria: Ensure you meet the eligibility criteria for bike finance. This often consists of elements such as your credit score rating and income level.
- Select a Bike Wisely: While the choice is yours, remember that buying a bike far beyond your budget can strain your finances. The loan is meant to help you get a bike that fits your needs. So, choose a bike that matches your commuting requirements and stays within your budget, whether it’s a standard model, an electric motorcycle, or a high-end option.
- Read the Fine Print: Carefully evaluate the conditions of the motorcycle finance agreement. You should also consider aspects like the repayment time, hidden costs, and any penalties for overdue payments.
What are the Important Aspects of Bike Finance?
Bike financing typically follows the same system as securing other types of loans. You should meet the documentation requirements, including age and income criteria. Here are a few essential factors to consider before applying:
- Documentation: The most important part of any loan is the documentation. You will have to offer proof of identification and address, along with an Aadhaar card, passport, or PAN card, and income documentation from the past six months.
- Approval Process: Most lenders process Two-Wheeler Loan applications within 48 hours, ensuring a quick and straightforward experience.
- Eligibility: Both salaried employees and self-employed individuals are eligible to apply. Salaried candidates should have been in service or in a company for at least 6 months, while self-employed people should have been in business for at least a year.
- Repayment Options: Two-Wheeler Loans offer flexible repayment tenures, allowing you to pay off the loan within as low as 6 months if desired. The total bike loan interest payable may vary depending on the chosen tenure.
In India, many NBFCs and lenders provide bike financing loans. Buying a bike can help you save travel time, offer flexibility to move around easily, and avoid being stuck in traffic for long. Bike financing is also important as it does not pinch your pocket (as opposed to other bigger loans), and you can make your dream bike a reality. If you’re seeking a bike loan with an ample loan amount, competitive interest rates, and flexible repayment terms, you can consider Hero FinCorp Two-Wheeler Loans.
Interesting Related Article: “8 Things to Understand About Taking Out Secured Personal Loans“