In case you are looking forward to buying a two-wheeler with the help of a loan, you should be we well aware of the differences and benefits of the two kinds of loans- Bike loan and Personal loan. You will find many several advantages and disadvantages of both these types. You can choose the best-suited one for you based on your personal and financial requirements.
Let's run you through about the two kinds of loans in detail.
Two Wheeler loans:
• Two-wheeler loans or bike loans have lower interest rates as compared to other investments.
• Two Wheeler loans are secured, and the interest rates begin at 9% and go further upwards.
• They have a lesser financial burden. Loans for two-wheelers allow you to repay a lump sum amount of money with manageable monthly installments over a period of time. You refund the loan amount at your convenience. With the available loan options, you can also choose to pay off the loan within a year or sixty months. All these factors depend on your monthly income and the monthly EMI you are comfortable with.
• Two Wheeler loans are easy and convenient.
• You can maintain two Wheeler loans as per your financial suitability.
• Two-wheelers come with comparably more mileage than every four-wheeler vehicles. This ensures that you save a fortune there. You can also quickly apply for two Wheeler loans online from your home. You no longer have to go through all the lengthy and tedious banking procedures.
• Such loans improve your credit score. A Two-Wheeler loan is more comfortable to pay off in a short tenure. Paying off loans also adds to your credit score.
• There is a margin in finance. Most of the leading Non-Banking Financial Companies extend finance margins that sometimes go up to even one hundred percent of the on-road price of the vehicle you are planning to buy.
• There are no charges on prepayment. Some banks tend to fix the repayment tenure of your two-wheeler loan. This depends on the interest that the lender earns from it. If you can pay off the loan before the end of the tenure, you will be levied a prepayment charge. The lender might also nullify the monthly interest loss.
• Such loans have a higher degree of affordability. Long repayment tenure on two-wheeler loans is a perk. In addition to that, the flexibility of easy monthly installments will make your dreams of owning a new two-wheeler a reality.
You can calculate the loan and interest amount yourself using a bike loan calculator.
• Personal loans, on the contrary, have interest rates that begin from 11.25% and go upwards.
• Such loans are unsecured.
• Personal loans are based on your credit profile, and thus the interest rates vary based on your income.
• It is advised to apply for a personal loan only if you need an amount more than the actual price of the vehicle.
• The limit on personal loans is higher- up to Rs 40 lakhs.
• The tenure of a personal loan spans from 6 months to 5 years.
• In case you do not want to pledge the two-wheeler vehicle you are buying as collateral, then a personal loan would be advisable as they do not require any collateral.
So, based on these facts and figures, and as per your requirements, you can opt for either a personal loan or a two-wheeler loan.