Do you want to buy a new bike? If you are from India and don’t have enough money to buy that, there are some finance options that you can choose. Bike lovers who are facing challenges regarding financing will get all the information through this blog.
Here, will talk about some of the essential finance options that you can choose and get your dream bike. Once you finish reading this blog, you will know about these modern financial tools, the documentation needed for these processes, and tips that will help. You can also check the Finance DSA app for some advanced information.
Available Finance Options in India
After consulting with financial advisors, we have come up with pretty solid options that you can have and buy the bike you want. Keep reading to learn more about them in detail.
What About Two-Wheeler Loans?
Almost every bank and financial corporation is now offering two-wheeler loans in India. These loans are specifically for buying bikes and scooters. You can get up to 90% of the total cost of the bike by choosing a two-wheeler loan.
Before choosing a particular bike loan, it is necessary to learn about the interest rates. The rate can vary from 9% to 18%. It all depends on your financial reputation in the market. After that, you have to choose the loan tenure as well. Usually, people take 12 to 48 months to repay the loan. If you have any other questions regarding these loans, it is better to consult with an expert.
Learn About Dealership Financing
The next option we have is dealership finance. Several bike companies have tie-ups with other banks and Non-Banking Finance Companies. You don’t need to visit the bank anymore for financing. The bike company will arrange everything with some special discounts.
The major difference between using dealership finance from other ways is that here, you will get instant approval. The overall process will take very little time. You must check different financing options and then get the best one.
Can We Use Credit Cards?
Using credit cards could be another effective way. This is only possible when your card has a high credit limit. It will surely get you easy EMI options that are hassle-free. After careful consideration, it has been found that the interest rate could be higher than other financing options. When you are sure that you will repay the amount soon, then you can use this method. You already have submitted the necessary documents to the card holding company, so you don’t need to worry much.
Importance of Personal Finance
Finally, you can pick a personal loan option. This is only possible with people having a great credit score. Two-wheeler loans are quite expensive due to their high interest rates. Personal loans are somehow less expensive. Compare these loan options, and then pick the right one for yourself. You can also talk to a Loan agent for help.
Another important reason for choosing personal finance is that, here, you can get a large amount of money. Once you get the loan approval, you can decide how to use that money.
How to Manage the Documentation Process?
We are done with the basics of all the possible loan options that you can pick. Now, the time has come to talk about the documentation process.
- In India, having an Aadhar Card is hugely important. You can also produce a PAN card, Voter ID, or driving license for this.
- You will have to produce an address proof with your loan application.
- Apart from this, you will also need to offer income proof. For that, producing your income proof will help.
- Have you checked your credit score recently? For getting any loan in India, it is mandatory to have a good credit score. Follow expert advice if you want to improve your credit score.
Once you have checked these items and submitted them, you are good to go.
Some of the Advantages of Using Bike Financing
There are several benefits when you are getting bike financing for settling the amount. Here are some of them-
- Most people can afford bikes using these loans.
- When you take these financing options and repay the money later, it will improve your credit score.
- There are some additional benefits.
You will learn many more things once you consult with an expert in this field.
