Owning your dream bike is more accessible and affordable than ever, thanks to bike finance options. With flexible repayment terms, competitive interest rates, and minimal paperwork, a bike loan helps you bring your dream ride home without financial stress. From smoother daily commutes to thrilling weekend rides, financing your bike makes achieving your goal easier and more convenient. Read on to explore the key benefits of bike finance and how it can help you.
Less Burden on Your Finances
Purchasing a two-wheeler with your savings can put undue stress on your finances. You may end up exhausting your emergency funds for the purpose. A bike loan allows you to spread the cost over time while keeping your savings intact. Moreover, choose a repayment tenure with EMIs that suits your budget. This way, it eliminates cash shortages when purchasing a bike and ensures your monthly budget does not get disturbed.
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Expand Your Choices
Do you dream of owning a premium bike model, but its price tag exceeds your budget? You no longer need to postpone the purchase. A bike loan can quickly make the required funds available and distribute its cost into easily affordable EMIs. That means you can expand your choices with a bike loan rather than compromising with a lower model due to a limited budget.
Grab Additional Offers
Lending institutions may collaborate with bike dealers to offer additional benefits for bike purchases. These include insurance coverage, zero registration discounts, cashback, etc. Such attractive schemes are available to those who purchase a two-wheeler with a bike loan, especially during festive seasons.
Tax Benefits
If you are a self-employed professional and use the purchased bike for business purposes, you may qualify for a tax deduction for your bike finance. Two-wheeler insurance, fuel cost, loan interest, and maintenance charges are deductible from your taxable income under section 80C of the Income Tax Act, 1961. However, tax exemptions are not applicable for bikes bought for personal use.
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Build Credit
A bike loan can be a stepping stone towards building a credit score. Since many lending institutions offer these loans with low credit scores, you can use them to build your score with regular repayment over time. Once your credit score improves, you may qualify for bigger loans at a competitive bike loan interest rate.
Easy EMI Option
A bike loan allows you to distribute the bike’s cost into easy monthly instalments. You can select an appropriate repayment schedule according to your convenience. A Bike Loan EMI Calculator can help estimate the approximate EMI you’ll need to pay to repay the loan, including interest. This allows you to plan your finances more effectively in advance.
Keep Your Savings for Emergencies
The cost of a bike, particularly for high-end models, can be significant. Using your savings to cover the entire cost might limit your funds for unexpected expenses. By borrowing a bike loan, you can keep your savings intact for personal expenses and urgent needs. Moreover, you don’t need to pay the entire bike’s cost upfront. Instead, distribute it into easy EMIs spread across a tenure of up to 60 months.
Generate Income by Investing Your Excess Funds
Instead of spending your excess funds to purchase a bike, invest this money into a beneficial instrument to generate extra income. This strategy can help increase your wealth over time and make you a bike owner with a Two-Wheeler Loan.
Inculcate Financial Discipline
Knowing that you need to pay loan EMIs each month encourages you to maintain sufficient funds in your bank account, fostering financial discipline. Over time, you learn to create a budget by reducing your unnecessary expenses and finding ways to increase income.
Other Benefits of Buying a Bike with a Two-Wheeler Loan
Apart from the above, these are some other benefits of financing a bike with a loan:
- Ample Loan Amount and High LTV Ratio: A bike loan allows you to buy the model of your dreams without exhausting your finances. At Hero FinCorp, you can borrow up to 95% of the bike’s value as a loan and bring the bike home by paying only 5% of its price tag. With a high loan amount of up to Rs 3.5 Lakh, you can buy the desired model without compromising its looks or features.
- Easy to Obtain: Gone are the days when loan seekers had to fulfil stringent eligibility conditions and submit hefty paperwork to obtain bike finance. Now, you can acquire the required funding by applying online from the comfort of your home.
- Flexible Repayment: By choosing a repayment tenure with easily affordable EMIs, you can conveniently repay the loan as suitable to your financial commitment and budget. Hero FinCorp offers a repayment period of up to 60 months, which makes the EMIs easy to adjust into your monthly budget. If you want to see what your EMI amount will be, use an EMI calculator to do the calculations.
Easy Steps to Apply for a Two-Wheeler Loan
If you are willing to finance a two-wheeler with a bike loan, follow these steps to apply:
- Visit the lender’s website.
- Go to the Two-Wheeler Loan section.
- Click ‘Apply Now’.
- Enter the necessary details.
- Select the dealership from where you want to buy the two-wheeler.
- Accept the ‘terms and conditions’ and submit.
Since you can choose bike loan EMIs according to your budget, you can get your hands on your favourite bike without stressing your finances or exhausting your savings. Competitive interest rates let you efficiently use bike finance and build your credit score over time.