When it comes to the middle class, loans, especially for bikes, can help take off the huge financial burden if chosen wisely. It offers a sufficient amount along with instant two-wheeler loan online approval. To learn the benefits of purchasing a bike on EMI in a detailed manner, check out this article.
Benefits of Two-Wheeler Loans Which Make Your Life Easy
Instant Approval
Nowadays, getting a bike on EMI is easier than ever before. Whether you are a salaried employee or run your own business, you don’t have to wait for days to get loan approval. The simplified application process and ease in qualifying criteria can help you get instant two-wheeler loan online approval within minutes.
The eligibility criteria for getting a bike on EMI are as follows.
- The applicant must hold Indian citizenship and must be at least 18 years.
- Both salaried and business owners are eligible to purchase a bike on EMI.
- Whether salaried or self-employed, a high income is not required to become eligible for this loan.
Minimal Paperwork
If you are busy collecting your key documents just for getting your bike loan processed, stop compiling the bundle of papers right away.
The financial institution requires a few basic documents, and after the successful verification of the same, they disburse the funds shortly to the account of the bike dealer. Since the modern age financial institutions deploy AI and ML technologies for credit appraisal, the document verification process is quick.
If you are unaware of the key documents that make you eligible for the bike loan, refer to the pointers below.
- Mandatory Documents – Application form and passport size photograph.
- Identity Proof – Passport/ Voters ID Card/ Driving License/ PAN card/ Copy of Company ID card (Govt. Company/ PSU/ MNC/Public Ltd.)/ Ration Card.
- Address Proof – Passport/ Voter’s ID Card/ Driving License/ Rental Agreement/ Telephone Bill/ Electricity Bill/ Gas Connection Bills/ Ration Card/ Sale Deed/ Property Purchase Agreement.
- Income Proof – Recent Salary Slip/ Salary Certificate, Recent Income Tax Returns (ITR).
Flexible Repayment Alternatives
When you plan to purchase a bike on EMI, the lending institution provides you with a flexible repayment option. The lender allows you to choose any repayment term for the period ranging from 12 to 48 months. In order to choose the ideal term, you may use a two-wheeler loan EMI calculator.
To decide on what is best for you and what is within your budget, use different combinations of loan tenure, fund value, and interest rate. Bear in mind that at the time of purchasing a bike on EMI, if you choose a shorter tenure, the EMI will be higher, but the interest component you will end up paying will be lower.
So, before deciding on a loan term, take your time, conduct a thorough analysis, and then make your decision. To understand this in a better way, let’s take an example.
| Parameters | 12 Months Term | 24 Months Term | 36 Months Term | 48 Months Term |
| Loan Amount | 50,000 | 50,000 | 50,000 | 50,000 |
| Rate of Interest | 7% | 7% | 7% | 7% |
| EMI | Rs. 4,326 | Rs. 2,239 | Rs. 1,544 | Rs. 1,197 |
| Interest Payable | Rs. 1,916 | Rs. 3,727 | Rs. 5,579 | Rs. 7,471 |
| Total Payable | Rs. 51,916 | Rs. 53,727 | Rs. 55,579 | Rs. 57,471 |
From the above table, you can clearly see that the longer the term, the higher the interest payable will be.
![What is PPF Account? Difference Between PPF, EPF & EPS Account [Explained]](https://justwebworld.com/wp-content/uploads/2022/07/What-Is-PPF-Account-150x150.png "Benefits of Purchasing A Bike On EMI 3")
EMI Option
When you purchase a bike on EMI, the lender splits the repayment amount into small instalments. Since the value of a bike is comparatively lower than a car, the borrower hardly faces difficulty in repaying them. However, still, if you have any trouble, contact your lender right away and request loan rescheduling.
High-value financing
If you are hesitant about buying a bike on EMI, keep in mind that bike financing not just provides quick approvals but also adequate finances to allow you to afford your dream bike. The majority of lenders offer this loan for a maximum LTV of 95%.
It means, by merely putting down 5% as a downpayment, you can ride your bike home. So, now you are wondering about the fund value? You can apply for this loan for the amount ranging from Rs 10,000 to Rs 1,00,000.
Covers not only your Bike
You might be surprised to learn that when you buy a bike on EMI, your loan value also includes the cost of the accessories. By accessories, we refer to the items that are installed at the showroom as part of the purchase process. Additionally, the loan amount also covers the cost of insurance and registration.
To Conclude
When you purchase the bike on EMI, you not just get an instant two-wheeler loan online approval but also other things that are outlined above. However, before arriving at any decision, shop around to find the lender that offers a competitive interest rate on a two-wheeler loan.
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