The prices of motorcycles in India are being constantly revised by OEMs. The reason is high input cost which is the result of inflation and high fuel prices.
The situation has taken a turn for the worse in the last two years. Even entry-level commuter bikes are now coming with hefty price tags that have breached the INR one lakh mark. Hence, people interested in buying a bike choose to do so only after they apply for a bike loan.
There are several benefits in store for people who choose to purchase a motorcycle through financing. Some of those benefits are enunciated in the sections below –
A bike loan allows one to buy their dream bike by offering more options
The Indian motorcycle industry is currently at its peak. This happened after several foreign bike brands entered the market. The increase in competition compelled indigenous bike brands to revamp their strategies. This led to an increase in options for the Indian riders.
When one wants to buy a bike with cash, they will only have a few options. On the other hand, with financing, one can buy any bike they want. Some lenders can cover more than ninety per cent of a bike’s MSRP. Granted such bike loans will entail hefty EMIs and interest rates, but at least one would own their dream bike!
One can keep their monthly expenses in check with a bike loan
Everyone has a fixed monthly expense plan that they cannot deviate from. If they do then they would have to dip their hands in their savings. Or, take out personal loans.
Purchasing a motorcycle with cash means that the person has to spend their savings on the vehicle. In such a situation, if they face a financial emergency, they won’t be able to get out of it. They will either have to break their FD or borrow money from lenders or their relatives.
All of the above can be avoided when one purchases their dream bike through financing. A motorcycle loan can be categorised as a financial cushion that can be repaid to the lender in small EMIs. This leaves the borrower with peace of mind as they have their savings, FD and emergency funds intact.
The interest rates that entail bike loans are affordable
Compared to personal, home and car loans, the bike loan interest ratesoffered by leading lenders in India are reasonable.
Bike loans were considered a niche financial product back in the day as most people bought bikes with cash. As the prices of motorcycles were hiked gradually, people started applying for bike loans. As the demand for bike loans increased, more lenders started offering bike loans. This increased competition among lenders which is why; the interest rates of bike loans are so low these days.
Applying for a bike loan is very easy these days
Applying for a bike loan used to be a cumbersome process that often took days to complete. This is not the case anymore. Thanks to the internet, the paperless loan application process became the norm. Furthermore, one can even submit all essential documents needed for a bike loan from the comfort of their home!
Bike loans often come bundled with bike insurance
Another appealing aspect of applying for a bike loan is that lenders often bundle bike loan schemes with bike insurance. Leading lenders often have close ties with leading insurance companies. This allows borrowers to get their new bike insured from the get-go. On top of this, borrowers are often offered benefits by lenders in the form of discounts and cash backs. The upsides of buying a bike through financing are many. Hence one should ditch the cash and apply for a bike loan when they want to buy a motorcycle. In case of further queries, one should consult with a reputed financial advisor before applying for a motorcycle loan.
