Buying a bike is one of the best things to do if you live in a busy Indian city. It will help you negotiate the heavy traffic on the roads like a pro. Moreover, you will be able to flaunt your style.
But, how will you finance the purchase of your bike? Relying on your savings is not a wise idea. It might lead to financial difficulties. That’s where a bike loan becomes your saviour. This article will take you through the reasons why taking a bike loan is the best option.
- It Helps Get Your Dream Bike
You might have your eyes on an expensive bike. Buying it with your savings will drain you out. Taking a loan will make your dream bike affordable for you.
You can repay the loan in EMIs. That will not put any extra pressure on you. You just need to put aside some amount every month for the EMI.
Moreover, lenders often offer festive discounts on interest rates. That can make your loan more affordable.
- Enjoy Tax Benefits
Two-wheeler loans come with tax benefits. You can enjoy income tax deductions on your interest payments. Who doesn’t want to save on their tax payments?
If you are self-employed, you can get many other benefits. The depreciation amount will also get deducted from your taxable income. However, it will be valid only if you use your bike for business purposes.
- Build Your Credit History
Your credit score and history are crucial factors while taking a loan. If you borrow a higher amount in future, your lender will want to check your credit history .
You can build your credit history through the bike loan. Repaying the loan on time will help you build a good credit score. That will be useful when you take a home loan or a personal loan in future.
- Get a High Loan to Value Ratio
The LTV denotes the part of the cost of your two-wheeler the lender gives you as loan. Bike loans have a high LTV. it can range up to 90- 95% of the cost of your bike.
Thus, a two-wheeler loan is a much better option than taking other loans to buy your bike.
- Use Your Money Elsewhere
When you purchase your dream bike with a loan, you can use your savings for other purposes. For instance, there might be several emergencies where you need cash immediately. In such cases, your savings will come to your rescue.
You can also invest the money you have. That will compound your wealth and give you extraordinary returns. Why spend your money on a bike when you can grow it? You can take a loan instead to get your two-wheeler.
- Get Additional Benefits
These days, several lenders offer insurance coverage with your two-wheeler loan.That means you don’t have to buy an insurance plan separately. Isn’t that great.
Look for these special benefits while applying for a bike loan. That will help you save more money.
Use a Bike EMI Calculator Before Applying
A bike EMI calculator will help you calculate your EMI amount within seconds without any manual calculation.
Calculating your EMI amount in advance will give you an idea of your expenses. Thus, you can plan your finances accordingly.
Getting a two-wheeler has become easier than ever due to bike loans. However, make sure you research well about a lender before applying for the loan.
Bajaj Auto Finance offers two-wheeler loans with minimum documents and quick processing. So, don’t wait any more. Start riding your dream bike.