Oct 5, 2020 ●15 min read
All You Need To Know About Two Wheeler Loans
When you think about it, two-wheelers can be the best friend of middle-class families on Indian roads. It is not an exaggeration to say that two-wheelers are the heartbeat of Indian roads. They are not just a tool for commuting, people also use them for a friendly trip, racing, long-distance travel, and off-road riding. However, a limited number of people can afford to purchase a bike outright in cash. This is where a two-wheeler loan enters to save the day. Such loans are particularly designed to make sure that buyers can get their dream bike or scooter. A two-wheeler loan is a loan provided to people to get their dream two-wheeler in enticing payment options.
According to a trusted report, the Indian market of two-wheeler loan market is predicted to expand from $7.2 billion in 2020 to $12.3 billion by 2025. It's a CAGR of 11% over 5 years. Two-wheeler loans are popular with GenZ or individuals born after 1995. business estimates show 50% of two-wheelers financed, against solely 30% in the previous decade. It projects additional people getting on bikes with two-wheeler loans.
The majority of the individuals in India opt to avail a two-wheeler loan even though they have the required money or funds to purchase the vehicle outright. The explanation for doing so is that a two-wheeler loan provides the option of paying back the amount in EMIs. The EMIs are large enough to repay the loan in due time however not large enough to place a serious money dent in your funds. As a result, two-wheeler loans are one of the most effective products of banks, NBFCs (Non-Banking Financial Companies), and lenders. The recognition of a two-wheeler loan, particularly bike loan without a down payment, has led lenders to contend with every alternative. Thus, individuals currently have varied choices that provide enticing interest rates and EMIs additionally to other perks resembling instant loans and loans for used bikes among others to tempt the customers.
First things first, you'll not be quite convinced to acquire a two-wheeler if you're accustomed to public transport. We also have heard repeatedly that two-wheelers are unhealthy investments.
In the present pandemic scenario and social distancing, it's safer and economical to commute on a bike instead of using any other means of public transport.
● You can simply zip through traffic and spare less time waiting at the traffic signals. That’s right, as individuals wait in their cars for the road to clear up, you'll simply wiggle your way through traffic and get ahead of your four-wheeler counterparts.
● They are much easier to keep up as compared to four-wheelers.
● The approval rate of the two-wheeler loan is higher than those of four-wheelers.
● Two-wheelers don’t contaminate as much as a four-wheeler because of higher fuel efficiency.
● Overall, they're more economical than four-wheelers
● They have a decent resale value.
● They are much easier to park and provide better mileage.
● It is simpler to induce a bike loan without a down payment
Minimum work is needed after you apply for this loan. you can simply apply for it online without ever having to visit a branch. Most of the lenders simply need the application form from you, and all the other activities are conducted digitally.
Applying for the loan is simple, and also the loan amount is disbursed rather quickly.
● You can choose from totally different reimbursement options as per your convenience. ask the lender all the choices and opt for the one that most accurately fits you.
● You can get satisfactory interest rates from various lenders. The loan amount is also high.
● Minimal documentation is needed when you apply for this loan. Most lenders need regular payment slips, proof of age and employment, bank statements, and residential address when applying for the loan.