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    You Should Finance Bike Purchase with a Two Wheeler Loan

    Today, the purchase of bikes comes with two financing options, namely self-financing and lender-based financing. The market trends have, however, witnessed a striking shift from self-financing to lender-based financing for bike purchase. Rightly so as availing a two wheeler loan to fund your bike purchase brings along a host of benefits. While self-financing may be the traditional way of bike purchase, it is fast being replaced with advances like bike loans that ease funding in several ways.

    If you are still not convinced enough about purchasing your first or next two wheeler with a bike loan instead of paying for it through savings, here’s a list of reasons to bat for these loans. And rightly so as we will find out here.

    – External Financing at Minimal Cost

    In case you self-finance your bike purchase, you are sure to deplete your life savings, leading to reduced financial cushioning for monetary crises. A two wheeler loan eliminates this use-up of your savings by filling the gap with external financing. As the loans are secured, you also get funding at reasonable and affordable rates.

    – Deferred expenditure

    While you may have had to pay the cost of your bike in a lump sum when self-financing, a bike loan  replaces this payment mode with EMI-based repayments. Under the financing structure thus, the lender finances such lump sum payment, and you need to repay the amount so availed and utilised  along with the applicable interest via small EMIs which are affordable and easy to accommodate in your monthly income. The expenditure is thus deferred over a long tenure that the lender approves of, allowing you to pay for a purchase you made today over the next 3 to 5 years.

    – Accessible from anywhere

    While not falling under the comparison aspect with self-financing, bike purchase through. A two wheeler loan still gains favour among individuals for its easy accessibility. So, even though you do not have the necessary funds for owning a bike. You can still purchase one through the loan. Further, whether you are applying for a two wheeler loan in Patna. Moradabad, Varanasi, Rishikesh, Alleppy, or any other city, all you need to do is send an online application.

    – Long tenure for repayment

    Lenders generally offer a tenure of up to 5 years for the repayment of your bike loan easily. The extended stretch allows you to agree on a suitable EMI for loan repayment. Since a long tenure reduces the total EMIs payable. You can choose the best instalment amount with the help of an EMI calculator available online. Make sure to also check the total interest payable on different tenures to determine the best loan affordability.

    – High financing value and LTV

    Eligible individuals can avail a two wheeler loan of up to Rs.10 Lakh to purchase the bike model of their choice. This provides the flexibility of selecting a two wheeler based on the bike’s cost. And your long-term affordability only without compromising on your choice.

    However, the total loan availability is subject to the lender’s LTV as well. Which represents the maximum financing available to the borrower as a percentage of the bike’s cost. For eligible individuals, lenders provide a high LTV of up to 95% on bike loans. The remaining financing value is to be met through self-financing via down payment. If you wish to avail down payment-free funding, 100% bike financing is available too.

    Two wheeler loans, if availed within affordable limits, can be the quick solution to your bike ownership or upgrade. Just make sure you meet all the eligibility and document requirements that your lender lays down and apply accordingly.

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