10 Excellent Benefits Of Availing 2 Wheeler Loan During Covid-19
COVID-19 pandemic is largely impacting the way you travel. For travelling to your workplace or anywhere far from your house, you will need to migrate from buses and trains for the daily commute. So, a two-wheeler can help your travel in comfort and convenience.
Two wheeler loan are unquestionably one of the largest growing industries in India. It is a hassle-free way of financing a bike of your choice. You can easily purchase a scooter or a motorcycle with a two-wheeler loan if you are salaried or self-employed. This loan helps in buying a two-wheeler, without having to stress about the entire cost at once. You can repay the loan with interest, through equated monthly instalments.
So, here’s a detailed list of 10 excellent benefits of availing a two-wheeler loan during Covid-19:
It can cost you a massive chunk of money to buy a brand new car. Whereas, you can buy a brand new motorcycle at an affordable rate. Even with this pandemic going on, it won’t burn a hole in your pocket as a two-wheeler loan will help you in buying the bike of your dreams.
2. Maintain Safety During COVID-19 Pandemic:
Due to the pandemic, many corporates are insisting on employees to use private vehicles for the next few months. So, buying a two-wheeler will help if you are facing financial pressure. As the two-wheeler is comparatively inexpensive against a car. Also, it will ensure your safety during this pandemic and will save you from the hassle of using public transport.
3. Paperless documentation:
You can apply for a loan during COVID-19 online. Bike finance or auto finance is comparatively simpler than other conventional options. Travel is absent as the documentation and KYC processes are paperless. You can enjoy a super-fast approval of your loan with minimal documentation.
4. Keep Cash In-hand:
During this pandemic, you would want to keep cash in hand and save it for emergency usage. You save money with the help of a two-wheeler loan as you do not need to pay all the cash at once.
5. Tax Benefit:
As mentioned in the Section 80EEB of the Income Tax Act, you can get a tax benefit on availing a two-wheeler loan for your bike from a lender. You can be benefitted with a tax deduction up to Rs 1.5 lakh a year on the interest.
6. High Resale Value:
Two-wheelers generally have a high resale value. As soon as you pay the loan with interest, you quickly upgrade to a better bike.
7. Improve Your Credit Score:
The COVID-19 pandemic has rendered it difficult for borrowers to maintain a good credit history. With the help of bike finance or used car finance, you can increase your credit score with timely repayment of the loan. It will also help you avail more favourable rates on future loans. And because the price of purchasing a two-wheeler is less, it makes two-wheeler loans the most convenient of all the loans to repay.
8. Low-Interest Rate:
The interest rates charged on a two-wheeler loan is comparatively less than a personal loan. The interest rates for bike finance in India range from 12% to 27%. The interest rates charged on the bike loan vary from one lender to another and also depends on multiple factors like CIBIL score, income, bike specifications, etc.
9. Eligibility across Various Income range:
The cost of an average two-wheeler ranges between Rs. 55,000 to Rs. 75,000 and when you avail a loan, the amount to be paid every month is less because of the low vehicle cost. You don’t need to have an annual income salary within the taxable income range. Even if you are earning around Rs. 1,00,000 per year, getting a bike loan approved is not a difficult task.
10 . Choose a two-wheeler of your choice:
You have the freedom to choose the motorcycle as the lender may finance the total value of your two-wheeler on-road price.
Two-wheeler loans are the new mantra as owning a big car is not so affordable. In a nutshell, flexible repayment, affordability, and technology are the key in a pandemic affected the world. Availing a bike loan is also an excellent opportunity for young professionals to start with their CIBIL scores. And with all the solid benefits mentioned above, there isn’t anything to stop you from availing for a Two-Wheeler loan.