The Indian two-wheeler industry is one of the largest industries in the world. This is because purchasing a two-wheeler is the most convenient and affordable way to commute. The rural population depends on two-wheelers because of the convenience.
In addition to domestic companies, several international manufacturers sell two-wheelers in India. Most leading manufacturing companies are investing in this sector to take advantage of the huge demand for two-wheelers in the country.
Apart from the convenience and affordability, the easy availability of two-wheeler loans is a huge factor that drives rural demand. Here are five benefits of availing of such loans.
- Lower down payment
Lenders fund up to 80% of the cost of the motorcycle. This reduces your down payment, which is the amount you need to pay from your own resources while purchasing the bike.
- Longer loan duration
Financial institutions offer such loans for a period of 12 to 36 months. The longer loan duration ensures you do not face any problems while repaying the loan amount.
- Quick and easy processing
If you are between 21 and 58 years of age, you may apply for a 2-wheeler loan. Lenders require basic documents, such as residential, income, and photo identity proof. In some cases, if you do not have an income proof but have other documents, you may still qualify for the loan. The entire procedure from loan application to approval is quick and easy. Lenders often process your loan within two days of receiving your application.
- Affordable interest rates
The interest rates on motorcycle loans are not very high. The affordable rate makes it easier for you to pay the Equated Monthly Installment (EMI). Moreover, a flexible repayment schedule ensures you have no financial difficulties while repaying the borrowed amount.
- Prepayment facility
If you receive a lump sum during the duration of the loan, you may repay the borrowed amount before the loan tenure ends. Most lenders provide such facilities at a nominal pre-closure rate. It is important you check these charges before you prepay the loan. This will ensure you do not pay more than a reasonable amount while prepaying the borrowed amount.
Several two-wheeler dealers partner with financial institutions to provide quick and affordable loans to you. However, it is recommended you check with different lenders to ensure you do not pay a higher rate of interest. A lower interest rate reduces the amount you repay during the loan tenure. This may help you save a significant amount in the longer duration. Furthermore, lenders may levy additional charges, such as processing fees, legal expenses, and late payment penalties. All these extra charges may increase the actual cost of availing of a motorcycle loan. It is important you clearly understand all these charges to reduce your financial burden.
You may apply for a loan online or visit the lender’s nearest branch. Reputed and reliable lenders hire experienced personnel to assist you during the entire loan application and approval process. You must understand all the terms and conditions before signing the agreement and opt for a loan based on your repayment capability. With the help of affordable two-wheeler finance, you may easily purchase your dream motorcycle.