Owning a bike can be both fun and economical. It’s also one of the most convenient modes of transportation you can use in India, whether you commute to work or school every day or plan to go on long weekend rides with your family and friends. However, if you want to purchase an expensive bike, it can be difficult to save up enough money for the down payment, even if you cut back on spending by giving up some luxuries or working overtime to make extra money on the side.
Comparison Between Auto and Bike Loans
Auto loans are generally designed for long-term vehicle ownership. This makes them ideal for buying cars and SUVs, which see frequent use over many years. Auto loans tend to have low-interest rates because of their long repayment periods, typically four years or more. Because auto loan interest is tax-deductible and payments are spread out over several years, they cost less than you might think. But don’t forget: Interest compounds over time. It will take a lot longer to pay off an auto loan that has a 20% APR than one with a 7% APR, even if both have similar monthly payments.
Advantages of Getting a Personal Loan For A Bike Over Leasing
A personal loan is a good option if you want to purchase a new bike on your own terms, but don’t want to shell out any cash immediately. You can use your monthly payments toward whatever you need and only repay once you have enough money in hand. For example, imagine you’re able to sell your old bike for $2,000. If you took that full amount and paid for a 12-month lease, you’d be putting about $200 a month toward paying it off—instead of using that money for something else entirely. Not only does getting a personal loan give you control over what happens with that money, but it also lets you decide how much interest should accrue during the term of your loan.
Important Things To Consider While Applying For A Bike Loan
- The applicant must be employed for at least two years and must have a stable income. * You need to be above 18 years of age, but younger than 65 years. * There should not be any kind of insurance on your vehicle’s name. * A valid Aadhaar Card and Driving License is mandatory.
Finance Options After Your Loan is Approved
Once you have been approved for a bike loan, you might still need a little more money. If that’s the case, turn to your savings. If your bank account is low, consider reevaluating your budget so that you can save enough extra money to meet your needs. If there is nothing else you can do and you still feel like you need more financing options, try exploring alternative lending options like peer-to-peer lending or personal loans.