Considering the complex Indian roads, bikes are one of the most comfortable modes of transport. They are also more cost-efficient and convenient for commuting. Fortunately, automotive brands offer a wide range of bikes that are under 1 lakh. You can buy a two-wheeler that suits your needs and budget.
But before moving forward, research for the best model and choose based on your requirements. If you face financial difficulties, lending institutions like Hero FinCorp can provide bike loans at competitive interest rates.
Here are some tips to help you purchase the bike of your choice.
Choose the Best Bike for your Needs
Whether you are looking for an eye-catching cruiser or a fuel-efficient commuter, each bike model has a distinctive appeal. The choices of bikes cater to a broad spectrum of preferences, whether you need a bike for daily commuting or to make a style statement. Navigate the diverse landscape of bike options to ensure you find a bike that fits your budget and aligns with your preferences and requirements.
Financing Options for a New Bike Under 1 Lakh
Now that you found the best bike under 1 Lakh that you want to purchase, let’s explore the available financial options in India:
- Traditional Loans: You may get a bike loan from a traditional lending institution to buy the bike you want. However, check the eligibility criterion, documentation requirements, interest rates, repayment terms, LTV ratio, processing time, and other formalities before applying.
- Peer-to-Peer Lending Platforms: P2P lending is a contemporary bike finance option that connects borrowers to individual loan providers. However, before financing your bike under 1 Lakh with this finance option, learn about its working, requirements, and repayment terms.
- Dealership Financing: Many bike dealerships offer in-house financing solutions that you may enquire about and explore. Such financing options may be tailored to particular bike models.
- NBFC Loans: These loans are the better alternative to bike financing in India. Unlike traditional loans, they are more flexible and accessible, with several other benefits.
Features of a Bike Loan
- A bike loan from a reputable lending institution like Hero FinCorp is secured where the bike you purchase is the collateral. Hence, you don’t need to provide any security for the loan.
- The bike loan tenures may span up to 60 months. You can clear your debt at a financially comfortable pace with easily affordable EMIs. The longer the tenure, the smaller the EMIs. However, there is a catch – the interest outgo will increase with a longer repayment term.
- Many bike dealerships have tie-ups with leading loan providers. That means you don’t need to apply for a loan before walking into the bike showroom. You can enter a showroom, choose your favourite bike, and get financial support on the spot.
- Hero FinCorp have minimal documentation requirements to approve bike loans. Furthermore, they process most loan requests without unnecessary delay.
- Choose a suitable repayment schedule using a bike loan EMI calculator available at the lender’s website. It ensures that the loan EMIs do not become a financial burden on your finances, and you can conveniently repay the loan without stressing your budget.
- Applicants with high credit scores can enjoy low bike loan interest rates. Those who never miss their EMIs, have a low DTI ratio, and have sufficient income enjoy the lowest rates.
Benefits of Financing the Bike Purchase with a Two-Wheeler Loan
Of the many bike finance options available in India, applying for a bike loan is the most convenient choice. Let’s discuss the benefits of getting bike finance through this option:
- Most loan providers offer competitive interest rates, benefiting prospective bike buyers.
- By getting a loan, you can easily purchase your favourite bike model without stress. You don’t need to compromise on the vehicle of your dreams.
- Bike loans provide easy repayment options in instalments. You can choose a loan term with easily affordable EMIs, allowing you to repay the loan at your convenience without burdening your finances.
- By repaying EMIs on time, you can build your credit score, which can help you secure a better loan deal in the future.
Points to Keep in Mind When Buying a Bike on a Loan
Do not hurry about applying for a bike loan. To help you make a better decision, here are some points to keep in mind:
- Improve your credit score before applying, as it will strengthen your chances of acceptance.
- Although bike loans from NBFCs are the best financing options for many reasons, you must compare their eligibility requirements, interest rates, and other terms and conditions before applying.
- Use an EMI calculator to choose a loan term with budget-friendly EMIs so they don’t stress your budget.
Steps to Apply for a Bike Loan
Have you made up your mind to purchase a bike under 1 Lakh with a bike loan? Follow these steps to apply:
Step 1: Visit the Hero FinCorp website.
Step 2: Reach the two-wheeler loan section.
Step 3: Scroll down and click ‘Apply for a loan’.
Step 4: Enter the necessary details.
Step 5: Choose the Hero FinCorp bike dealership from where you want to purchase the bike.
Step 6: Agree to the ‘terms and conditions’.
Step 7: Click on the ‘Apply’ button.
Purchasing a bike purchase with a bike loan has several upsides. However, since innumerable loan plans are available in India, proper research and comparison are necessary before selecting the best deal. Hero FinCorp is one of the most reliable lending institutions offering bike loans up to Rs 3.5 Lakh with an LTV ratio of up to 95%. So, if you want to purchase a bike under 1 Lakh, these loans will be your best financing solution.
