When purchasing a new two-wheeler, many people are faced with the question of how to pay for it. One option is to take out a loan from a financial institution. Another option is to pay for the two-wheeler in cash. When compared to paying cash, getting a two-wheeler loan has several benefits. Perhaps the most obvious benefit is that one can spread the cost of the purchase over several months, making the purchase more affordable. Additionally, a two-wheeler loan can provide several other benefits, such as a lower two-wheeler loan interest rate, a longer repayment period, etc.
This article will discuss the advantages of taking a bike loan versus paying cash.
Why is a two-wheeler loan preferred over paying cash?
1. Reduces financial burden
The main reason a bike loan is preferred over paying cash is the financial burden it saves a borrower. Loans are a common method of getting money, and because they are easier to qualify, most people prefer them over cash. There is no need to worry about hefty payments all at once; only monthly repayments are required.
If you are struggling with financial obligations, paying for a vehicle in instalments can help ease the burden of debt and make it easier to pay other bills.
2. Easy process
Getting a loan for a two-wheeler has never been simpler. These days, borrowers may apply online and receive immediate approval for these loans. One only needs to complete the application form, upload the required files, and submit it. It will not take long for the loan approval.
3. Boosts purchasing power
By choosing a loan over cash, one might have more purchasing power. Borrowers must pay a large sum upfront when making a large-ticket purchase like a two-wheeler. However, with a loan, this payment can be spread in instalments. There are several varieties of motorcycles available. One could get an affordable bike or a very pricey sports bike with a bike loan.
4. Improves credit score
Maintaining a high credit score is necessary if borrowers hope to be approved for a larger loan in the future. Making on-time payments with a bike loan is simple because interest rates are affordable. As a result, they may be able to obtain quick loan approvals in future and enhance their credit history, which is not possible with cash.
5. Competitive interest rates
The interest rate on a two-wheeler loan is competitive. Interest rates vary depending on the NFBC contacts, employment history, pay range, bike model, etc.
Today, NFBCs provide bike loans at affordable interest rates.
Conclusion
Today, taking out a loan is a more comfortable and practical alternative where you can also take advantage of several fascinating bonuses. With Muthoot Capital, acquiring a bike loan is convenient and hassle-free. Borrowers can get their dream bike with affordable EMIs, fewer documents, finance schemes that suit their needs, competitive two-wheeler loan interest rates, easy-to-meet eligibility requirements and flexible repayment options.
