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The process of buying a two-wheeler does not end with you selecting the bike model of your dreams. There are many more decisions that follow and the most important one is how to pay for it.
Many people opt for Two wheeler loans; they are much more affordable and financially prudent for most people. These are just a few reasons why getting a bike loan will make sense for you.
Why You Should Get a Two Wheeler Loan
1. Safe
When borrowing from an esteemed lender like Bajaj Auto Finance, you can borrow with confidence. The RBI closely regulates these policies and implements rules and regulations to make sure that the flow and process are thorough and fair.
That is why it is safer to get a two-wheeler loan from a recognized lender like Bajaj Auto Finance. Moreover, the interest rates will not be exorbitant, and the penalties will be clearly explained before you take the loan.
2. Affordable
Just because you may not be able to afford a lump sum payment for the vehicle does not mean you shouldn’t purchase one. With a loan, you can pay for the bike in estimated monthly instalments that you can afford.
If you wish to find out your EMI before deciding which bike you may end up purchasing, then you can use a bike loan EMI calculator which lenders like Bajaj Auto Finance make available for free.
3. Liquidity
Taking a loan allows you to be relaxed as it will enable you to have sufficient cash for emergencies and short term commitments other than buying a bike. This way, you do not spend the entirety of your bank account on the vehicle.
Instead, you can repay the investment in easy instalments of 12 to 48 months, varying on the type of bike bought, and you can use an online bike EMI calculator to get a better picture of the finances.
4. Opportunity
When you choose to pay for the two-wheeler without a loan, you may lose a large sum of money in opportunity cost. When buying a fixed asset, it is better to do so on credit so that you can invest in stocks and invest in assets with the same funds.
This approach will allow you to actively make money instead of sinking it into a fixed asset that only depreciates. This is one of the most popular reasons for getting a two-wheeler loan.
5. Tax And Depreciation
If you are self-employed, then you can file your bike under a business purchase. This will give you the chance to claim tax benefits on interest repayments and benefits of depreciation from your two-wheeler.
Unfortunately, this perk is only applicable to those vehicles that are purchased for business purposes and are recorded as such in your receipts. Other benefits include writing off loan interest repayments, insurance, and additional maintenance charges.
6. Credit Profile
If you have been looking to make a credit profile, there is no better place to start than with a bike loan. Paying the monthly EMI’s on time will lead to getting a good credit rating or score; this will lead to you being eligible for higher risk loans.
It is not just your bike loan repayment that is taken into consideration while calculating your credit score, but all of your financial transactions made in the recent past are monitored and compiled.
7. Financial Discipline
Paying your monthly EMI is a lot like paying your credit card bills; failure to repay on time will lead to fines. This will teach you how to budget and play your monthly expenditures so that you are able to pay the loan without dipping into your savings.
This will inculcate financial discipline and ensure you have sufficient funds in your bank account.
Documents Required for Loan
While applying for a two wheeler loan keep ready required documents:-
Salaried person:
- ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
- Two recent passport size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Last 3 month’s salary slips/ Form 16/Latest ITR
- Last 3 month’s bank statement is mandatory
Self Employed:
- ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
- Two recent passport size photographs
- Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/ Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
- Latest Income Tax Return (ITR)
- Last 3 month’s bank statement is mandatory
Conclusion
For many, buying your first vehicle is a big moment, and Bajaj Auto Finance just wants to help make that dream a reality. As a lender that focuses only on automobile loans, you will get the best prices and deals.
Must Read:
Importance Of Buying A Two-wheeler Insurance Policy On Time
Can You Apply for a Personal Loan After Bankruptcy?
