The millennial lifestyle has helped us learn how to remain on the move at all times. Among other factors, easy ownership of bikes has significantly ushered in a fast-paced life and enabled people to commute easily even in the heaviest of traffics. Increasing ownership and purchase of bikes across the country can be seen as a direct reflection of that.
Availability of necessary financing like a bike loan has only made it easier to purchase a new bike of your choice without having to worry about the lump sum funding. You can easily secure the funds against minimum eligibility requirements, whereby online bike loans have only improved such dynamics with their ease of availability. We bring you some of the top benefits that online two-wheeler loans bring along.
Top Advantages of Online Bike Loans
1. Differed financial burden
While bike loans are usually mid-valued financing options, such funding can be burdensome on anyone if he/she has to meet the purchase cost with lifelong savings. Also, utilising your savings for vehicle purchases can leave you without any financial cushioning during difficult times.
An online bike loan helps defer this financial burden by allowing lump sum funding from a lender whom one needs to repay the advance in smaller monthly installments. It not only solves the issue of immediate financing but also allows you to manage your funds better. You can now easily avail of a bike loan online without much hassle and defer the repayment to up to 5 years conveniently. A high financing value also ensures sufficient funding for the desired bike model purchase.
2. Repayment in easy, manageable EMIs
Along with deferring the immediate financial burden, you also get to repay the advance in small, manageable EMIs. An EMI comprises both the principal and interest components of the loan, whereby the lender decides on these components for each EMI based on the amortization schedule.
Nevertheless, EMI-based financing is an innovative funding solution that allows you the flexibility of easy repayments. You can decide on a suitable EMI for your bike loan based on the loan amount and tenure opted for. Lenders provide customized financial tools like EMI calculators to help you with easy decision-making about the suitable loan amount and tenure to avail. You can get access to these free tools online on the websites of various lending institutions.
3. High loan to value
Lending institutions providing bike loans online also extend a high loan to value (LTV) ratio on them, improving your chances of maximum financing of the purchasing cost. In any secured loan setup, a borrower needs to make a down payment for a specific purchase while the remaining amount is provided as the funding, known as LTV.
- LTV also represents available financing as a percentage of the total purchase value of the asset, whereby a higher LTV is preferred. In the case of online two-wheeler loans, LTV can go quite high, up to 80 to 90% of the bike purchase cost, thus enabling you to avail necessary funding to purchase your desired bike model. Essential features like a high loan value of up to Rs.1 Lakh only make bike purchase financing convenient.
4. Flexible repayment options
Lending institutions providing bike loans online also offer a flexible tenure of up to 5 years to enable easy repayment of the advance in affordable EMIs. While this offers them the convenience to manage repayment as per their financial standing, borrowers can also benefit from other repayment options available with them. For instance, with the availability of lump-sum funding, a borrower can choose to part-prepay the loan amount or foreclose the account altogether. Such repayment options also help save on the total interest payment by cutting short the tenure involved.
5. Easy loan processing with minimal documentation
Online bike loans also require you to fulfil only bare minimum criteria essential for such funding. You thus need to submit the corresponding documents to establish your loan eligibility. A reduction in paperwork also cuts short the time taken in availing the loan, thus enabling early access to funds.
Combined with affordable rates and charges, online bike loans are a good bet when it comes to making big-ticket purchases involving a costly bike model. Make sure to compare the available lenders in the market to secure the most affordable financing option for your bike purchase.