Are you thinking of buying a two-wheeler to make your daily commute easier or to travel safely with your family or friends? If you are, you should consider taking a two-wheeler loan to make that purchase.
A vehicle can add a lot of convenience, flexibility, and in current pandemic times, an element of protection. We discuss some benefits when buying the wheels of your choice with a loan.
If you are in a dilemma about whether to pay for your vehicle from your savings or apply for a loan, we have ten reasons to help you decide.
Using your savings to purchase a scooter or bike can limit your options. When you use your saved funds, you may find it difficult to buy what you desire, as you may not have saved enough. A lack of funds may compromise the functionality of the vehicle you choose, or you may not be able to buy the model or brand of your choice.
An emergency can strike anyone at any time, and you must have some amount saved to deal with a crisis. Exhausting what you have as an emergency fund to purchase a vehicle could make you vulnerable in a crisis. A two-wheeler loan helps you keep your savings untouched.
Shriram City offers you up to 100% financing on the on-road price. Thus, you do not have to disturb your investments for a down payment.
Two-wheeler loans are available at reasonable rates. There are multiple lenders to pick from, so you can find a deal best suited for you. Low-interest rates mean that repaying the loan instalments are not a challenge for you or a burden on your monthly budget.
Auto loans are secured loans. It is essential to have the right balance of secured and unsecured loans for a healthy credit score. When you pay your EMIs regularly on time, you create a good credit trail that can help you improve your credit health.
Using your funds to pay for a two-wheeler deprives you of an opportunity to invest your funds and create wealth. When you use your money to buy a bike or scooter, then you are unable (obviously) to invest it. You can buy equity, mutual funds or any instrument of your choice and earn good returns on it with your spare funds.
You may have some amount saved to buy a vehicle; however, it may not be sufficient. Though you may need the two-wheeler right now, you will have to postpone your decision till you can save an amount that is enough to buy a bike. This may take a while! By the time you save enough, the prices might go up again!
Applying for a loan for a two-wheeler is a simple process that requires minimal documentation. The processing time is also low, and disbursals are quick.
Shriram City can provide the fastest auto loan in India; loan disbursement happens within 24 hours of the loan approval.
This benefit may not be available to everyone, but it is still a substantial advantage for those who can avail of it. Self-employed individuals or professionals can purchase the vehicle in the business's name and claim tax benefits on the interest repayments. You can also claim depreciation benefits, insurance, fuel and maintenance expenses.
When you use an auto loan to buy a two-wheeler, you get an additional benefit in the form of insurance and accidental cover. As per the Indian Motor Act, lenders sanction a loan with an insurance cover for the vehicle and accidental protection for the owner.
Most lenders have tie-ups with insurance providers, ensuring a smooth and hassle-free process, and you can get an insurance policy at favourable terms.
Since you have to pay the loan EMIs every month, you have to plan and budget your expenses when you borrow. There is no compulsion to track your expenses when you use your funds to pay for the bike. Thus, you have depleted your savings and are not mindful of your monthly expenditure. An auto loan encourages you to be financially disciplined and instils a habit of budgeting too.
A two-wheeler loan can help you buy the wheels of your choice and help you commute with ease. We have discussed reasons to opt for a loan to buy your bike or scooter. However, before you decide, understand your requirements and financial situation, and then pick after careful research.