6 Top Benefits Of Availing A Bike Loan To Get An Electric Bike

A bike loan is an easy-to-access solution, and many lenders have special offers too. With umpteen lenders in the market, availing a bike loan has become hassle-free.

There is a huge list of pros of availing a bike loan.

Two-wheelers play a crucial role in today’s fast-paced world, and now the electric bike is slowly becoming a popular choice. It makes travelling through crowded streets easy, and can be quite pocket-friendly too! However, despite the two-wheeler offering many advantages, you may not be able to afford the high price tag of such vehicles. An easy way to overcome this lack of funds is to get a bike loan.

A bike loan is an easy-to-access solution, and many lenders have special offers too. With umpteen lenders in the market, availing a bike loan has become hassle-free. There is also an option to calculate your EMI in advance using an EMI calculator. This way, you can easily plan your loan according to your monthly budget.

In addition, there is a huge list of pros of availing a bike loan.To know how getting a bike loan can help you get the latest electric bike in the market, read on.

Enjoy Quick Approvals on Bike Loans

Availing a bike loan is a simple process involving minimal documentation. Whether you are self-employed or salaried, submit the following documents to get easy bike loan approval.

For identity proof:

• Voter ID
• PAN card
• Aadhaar card
• Passport
• Driving licence
• Recent passport-size photo

For address proof:

• Utility bills issued by the Government
• Passport

For income proof:

• IT Returns
• Bank account statement
• Latest salary slips
• Audited financial statements (self-employed)
• Form 16

After your documents are verified, your loan is sanctioned and you can proceed with buying the bike. If you want to purchase an electric bike or any other two-wheeler, there is no need to wait to accumulate enough funds.

Plan your purchase correctly so that you can save up the money for giving the down payment. The down payment is the amount you pay upfront when you purchase a bike, excluding the loan amount.

Your bike loan covers the remaining amount. With digitisation, bike loan approvals have become paperless. All you need to do is complete the details on the lender’s website and upload relevant documents. After verification, your loan is disbursed instantly.

Avail Attractive Interest Rates on Bike Loans

Most lenders offer attractive interest rates, which can start as low as 9%. Many factors govern the interest rate on a bike loan. Take a look at some reasons affecting the interest rates:

• Credit score
• Source of income
• Down payment
• Place of residence
• Income
• Age

Various banks and NBFCs offer different interest rates, based on your profile. The factors mentioned play a crucial role in deciding the interest rate.

For instance, you may get a higher interest rate if your credit score isn’t over 750. Additionally, if you pay a large portion of the purchase amount as a down payment, you need to only apply for the remaining part. This can decrease your bike loan interest rate.

However, with increasing demand for two-wheelers, lenders have reduced the interest rates. With many attractive rates flooding the market, getting a bike loan on affordable terms is quite easy.

Boost Your Credit Score

A credit score assures the lender of your repayment capacity. If you have a score of 750 or above, you can get easy approval for such loans.

If you are availing a loan for the first time, the lender may assess your income stability. In many cases, you may still get approval even if you have a low score, and this is an opportunity for you.

Since the bike loan requires you to borrow a smaller sum, as compared to a car loan, repaying the loan on time is much easier. This helps you build a consistent repayment track record, which ultimately boosts your credit score.

So, if you have never availed a loan before, getting a bike loan can be a smart way to improve your score. However, do ensure that you have a stable income and can handle payments without depleting your savings.

Get Your Loan Sanctioned Easily

Getting your bike loan sanctioned involves a straightforward process. Meet the following eligibility criteria and avail your bike loan quickly.

• You have to be at least 18 years when you avail a bike loan
• Your maximum age has to be 65 years when the loan tenure ends
• You must meet the lender’s minimum income requirements

Meeting these criteria can help you get your bike loan instantly, and without any issues. 

Repay Your Bike Loan in Easy Instalments

As the bike loan sanction is generally low, repaying it within the tenure becomes easy. An easy way to estimate your monthly outgo is to use a bike loan EMI calculator. Most lenders have an online EMI calculator on their websites that allow you to assess your repayment capacity.

Before you finalise a lender, note the interest rate and the EMI amount payable. Then, with the help of an online tool like a bike loan EMI calculator, you can easily compare offers. All you need to do is enter the loan amount, tenure and applicable interest rate.

Opting for a long tenure can decrease your EMI amount but it does increase your interest outgo. So, borrow wisely, and only after having analysed a few options.

Become Financially Disciplined

Availing a bike loan can improve your financial discipline as it requires you to pay EMIs regularly. This can help you keep a tab on your expenses as you need to plan the budget properly.

On the flip side, purchasing the bike outright may not work to the same effect. Tracking your expenses is crucial and with a bike loan, you can build the right habits. Be it planning, analysing options, or even saving to make a larger down payment, there are many ways in which it can help you get disciplined.

Getting a bike loan is the best option if you plan to buy the latest electric bike in the market. With lenders offering nominal interest rates on bike loans, the process of availing a two-wheeler loan has become seamless and convenient.

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