Tag: bike loan

Mistakes to Avoid with a Bike Loan

Two Wheeler Loan

For the average individual in India, a motorcycle is an asset. A motorcycle is cheap to own and easy to ride. Furthermore, parking issues with a motorcycle are negligible.

However, whether one is buying a Bajaj 100cc bike or a Dominar 400, prices of motorcycles recently have skyrocketed. 

This led to the situation where loans for motorcycles became the only solution for motorcycle buyers. In this context, it is best to remember to avoid the mistakes mentioned below with one’s bike loan.

Delay paying the EMIs

It is a mistake to delay paying the EMIs for one’s two-wheeler loan. Delayed EMI payments would not only rack up penalties but also hamper one’s credit history. If continued, delays can also lead to the instance where the lender repossesses the bike!

Not making a downpayment and applying for a large loan

It is a mistake to apply for a loan without making a downpayment. At the same time, it is also a mistake to borrow a large sum from a lender. In both cases, a borrower would have to bear steep interest rates and extremely steep EMIs. 

Not borrowing from authorized lenders

It is a mistake to borrow money from unauthorised lenders. One must ensure that the lender they are borrowing from has the necessary credentials like permission from the RBI.

Not paying attention to the fine print of the loan document

It is a mistake to avoid reading the terms and conditions of the final loan document. In case one is having issues understanding any clause then the doubt should be clarified on-site. Otherwise, one might end up paying unnecessary charges.

For more details, consult a professional financial advisor.

Must Read: Top 5 Sports Bikes in India That You Should Know

3 Things to Consider Before Getting a Two-Wheeler Loan in India

Two Wheeler Loan

Indians and their love for motorcycles is no news.

However, gone are the days when one could buy a bike they like with cash. Motorcycle manufacturers have been increasing the prices of their respective line-ups every month. This led to the current situation where even an entry-level motorcycle costs more than INR 80, 000. 

The price hikes also allowed loans for a two-wheeler to become a mainstream financial product from a niche financial product.

However, when one is applying for a motorcycle loan, one should keep the following things in mind.

It is best to stay away from 0 downpayment loans

0 downpayment loans allow buyers to take the bike they want home without paying a penny as a downpayment. The entire MSRP of the motorcycle will be borne by the lender. The downside of a 0 downpayment loan is that borrowers would have to bear steep interest rates on the borrowed sum. Furthermore, the EMIs for a 0 downpayment loan scheme will be steep as well.

It is best to borrow a small sum

Financial advisors often advise buyers to borrow not more than 20% from a lender while applying for a bike loan. The reason is simple. A small debt is within the borrower’s control. When a debt is small, the borrower is also able to keep their financial history as well as credit score red-flag free.

It is best to borrow when one’s credit score is high

Borrowers should apply for a loan for long-ride bikes when their credit score is above 750. A high credit score will allow a borrower to enjoy reasonable interest rates. Furthermore, the loan would also entail favourable clauses such as affordable EMIs.

To learn more, please consult a professional financial advisor.

Must Read: A complete list of Bajaj Auto’s entire Pulsar range for Indian riders

Here is the latest Bajaj motorcycle price list for 2023

Bajaj Bikes

Bajaj Auto has revised the prices of its motorcycles for the year 2023.

Here are the details.

  • Bajaj Platina 100 – the best mileage bike from Bajaj with a base price of Rs. 64,225. The top trim costs Rs. 83,795.
  • Bajaj CT 110 – another mileage bike with a base price of Rs. 74,922. The top trim costs Rs. 84,783.
  • Bajaj Platina 110 – the best-selling mileage bike from Bajaj with a base price of Rs. 82,914. The top trim costs Rs. 90,099.
  • Bajaj CT 125X – the stylish and fuel-efficient commuter bike with a base price of Rs. 88,470. The top trim costs Rs. 92,019.
  • Bajaj Pulsar 125 – the entry-level Pulsar with a base price of Rs. 99,966. The top trim costs Rs. 1, 12,438.
  • Bajaj Pulsar 150 – the model that made the Pulsar brand a phenomenon. The base trim costs Rs. 1, 29,410. The top trim costs Rs. 1, 38,911.
  • Bajaj Pulsar NS125 – the entry-level NS Series Pulsar with an ex-showroom price of Rs. 1, 27,414.
  • Bajaj Avenger Street 160 – the street cruiser with the ex-showroom price of Rs. 1, 43,921.
  • Bajaj Pulsar P150 – A new bike from Bajaj with the design of a street bike. The base trim costs Rs. 1, 41,470 and the top trim costs Rs. 1, 44,699.
  • Bajaj Pulsar N160 – the entry-level N Series Pulsar. The base trim costs Rs. 1, 52,842. The top trim costs Rs. 1, 58,002.
  • Bajaj Pulsar NS160 – the sibling of the NS 200 with an ex-showroom price of Rs. 1, 54,418.
  • Bajaj Pulsar NS200 – the OG street bike from Bajaj with an ex-showroom price of Rs. 1, 72,338.
  • Bajaj Pulsar N250 – a naked street bike with a base price of Rs. 1, 72,474. The top trim costs Rs. 1, 86,019.
  • Bajaj Pulsar F250 – a new model Pulsar. The base trim costs Rs. 1, 72,474 and the top trim costs Rs. 1, 86,019.
  • Bajaj Avenger Cruise 220 – the most affordable cruiser bike from Bajaj with an ex-showroom price of Rs. 1, 73,506.
  • Bajaj Chetak – the e-scooter from Bajaj with an ex-showroom price of Rs. 1, 66,808.
  • Bajaj Pulsar RS 200 – the premium compact sports bike with an ex-showroom price of Rs. 2, 09,633.
  • Bajaj Dominar 250 – the sibling of the Dominar 400 with an ex-showroom price of Rs. 2, 12,168.
  • Bajaj Dominar 400 – a street bike with an ex-showroom price of Rs. 2, 75,050.

To learn more about the bikes mentioned in this post, visit the nearest Bajaj bike dealership today.

Must Read: Top 4 Reasons Why Bajaj Platina 110 H Gear is The Best Mileage Bike in India

Benefits of Financing a Bike in India

bike loan

The automobile sector was hard-hit no thanks to the COVID – 19 pandemic. Global supply chain disruptions were the primary reason for automobile brands to incur losses. Global automobile manufacturers are trying hard to bounce back. The same goes for the bike manufacturers in India.

However, there is a catch. To make up for the losses incurred during the lockdown days, the prices of bikes have shot up. Currently, one would have to pay more than INR. 1 lakh for a 125 CC bike! Hence the days of buying bikes with cash are long gone.

These days, people apply for a bike loan as financing a bike allows them to enjoy the following benefits.

  • Although the prices of motorcycles have gone up, shockingly, the sales of motorcycles have not waned in India.  The reason is simple. People have finally understood that they do not have to use cash to buy a bike they want. The days of settling for a bike that barely meets commuting needs are long gone. With the help of financing options, one can even buy a superbike if their heart desires. 
  • A bike loan also allows one to keep their monthly budget intact. As one won’t be spending cash to buy a bike they want, they’ll have the means to make ends meet.
  • The bike loan interest rates that entail almost all bike loan schemes are competitive these days. This can be verified if one uses an online bike loan EMI calculator. The upside of competitive interest rates is that one will have plenty of lenders to choose from. Furthermore, one will also be able to negotiate the terms offered by the lender. The lender will try their best to secure the deal instead of losing a client to its rival(s). Hence, one will be able to not only get low interest rates but also enjoy bespoke loan clauses.

To learn more about the benefits of financing a bike, one should consult a professional financial advisor.

Must Read: Top 5 Sports Bikes in India That You Should Know

Why Bike Loan is The Best Option to Buy a Bike?

bike loan, Two Wheeler Loan

The spending capabilities of the average Indian have gone up in recent years. But still, Indians prefer to buy a bike and not a car. The reason is simple. A car costs more at the dealership than a bike. Then the costs of registering and insuring the vehicle are exorbitant as well. Furthermore, the fuel and maintenance costs of a car are otherworldly, to be honest. On top of these, cars cannot cut through traffic like a bike. Parking a car is a headache as well.

On the other hand, a bike costs less than a car. Bikes consume less fuel and cause less pollution. Bikes can cut through the traffic and allow the rider to reach their destination quickly. Parking a bike is way easier than parking a car. On top of these reasons, the maintenance, insurance and registration costs of a bike are affordable.

Then why do people apply for a bike loan when they want to buy a motorcycle?

In recent years, the year-on-year growth of the Indian motorcycle sector has been impressive. Demand for motorcycles has always been high across India but recently demand has surpassed supply. Bike brands ensured that they are not failing to monetize this growing demand for motorcycles. This is why motorcycle brands operating in India have hiked the prices of their motorcycles by several folds. The cost of even an entry-level commuter bike now costs more than INR. 80, 000.

Hence, the days of buying a bike with cash are long gone.

Furthermore, buying a bike through a loan entails a lot of benefits for the buyer. Some of those benefits are mentioned in the sections below.

  • A bike loan allows one to keep their emergency funds intact.
  • Bike loans entail low-interest rates. All one would have to do is use a Two wheeler loan EMI calculator before applying for a loan. In this way, they would be able to select the best principal + tenure + downpayment combination. The best principal + tenure + downpayment combination would entail low-interest rates.
  • A loan would also allow one to boost their CIBIL score and create a spotless credit history.

To learn more about the benefits of financing a bike, talk to the nearest professional financial advisor.

Must read: How To Calculate Two Wheeler Loan EMI?

Here is The Complete Guide to Getting a Two Wheeler Loan

Two Wheeler Loan

Most lenders in India approve motorcycle loans in a single business day. But there could be exceptions when an application can get rejected.

To keep such incidents at bay, two-wheeler loan applicants can follow the tips mentioned below – 

One should apply for a bike loan after using an EMI calculator

One should apply for a bike loan once they have checked the loan particulars using a Two wheeler loan EMI calculator. Pre-checking the particulars of a loan allows the borrower to ensure that they will be able to afford the scheme. A loan with a hefty principal amount, long tenure and small downpayment will entail hefty interest rates and EMIs. If the borrower doesn’t have the financial history that can convince the lender, the application can get rejected. To keep rejections at bay, pre-checking the loan particulars using an EMI calculator is the way of the wise.

One should provide their preferred lender with accurate details 

The borrower should remain calm when they are providing pertinent details to their lender for the bike loan. If wrong details are provided, intentionally or otherwise, the act can leave a red flag in the loan application. This would lead to unnecessary delays and even rejections in some cases.

Borrowers should apply for a bike loan if and only if they have a high credit score!

It is highly recommended that the borrower applies for a motorcycle loan only when they have a high credit score. A credit score above 750 is ideal for a motorcycle loan. The best part is that a borrower with a high credit score will get low-interest rates.

The reader should consult with a professional financial advisor for more details.

Must read: How To Calculate EMI on Bike Loans with EMI Calculator?

Why Should You Apply for a Two Wheeler Loan?

Two Wheeler Loan

Since the pandemic hit the world, the prices of mass produced goods have skyrocketed. This trend is also seen in the automotive sector. To put things into perspective, the prices of even the entry level motorcycles in India are overwhelmingly high these days!

Hence, applying for a bike loan seems like a good idea.

Why don’t people use cash to buy a bike?

Well, buying a bike with a motorcycle loan has many benefits.

Some of those benefits are enunciated in the sections below – 

  • Bike loans come with low interest rates. The same cannot be stated for other secured loans like personal, business, home or car loans. On top of this, when one uses a bike EMI calculator, one can choose the best tenure + principal combination. Choosing the best tenure + principal combination can keep the EMIs for a bike loan reasonable.
  • A motorcycle loan allows one to keep their hands off their savings. One can also make sure that their FDs and related emergency funds remain untouched. In this way, a bike loan can keep the borrower financially secured.
  • A motorcycle loan can also help the borrower build their credit score. Here’s how – every EMI paid boosts the credit score of the borrower. At the same time, the overall credit history of the borrower is also strengthened.
  • Most lenders these days offer motorcycle loan schemes with flexible debt repayment options. It means that the borrower can clear their debt before the tenure is up. The best part, paying the debt before the tenure will not entail any penalties.

For more details, one should consult with a professional financial advisor.

Must Read: How We Can Calculate Bike Loan EMI Online?

Top Reasons Why You Should Apply for A Two Wheeler Loan

Two Wheeler Loan

Gone are the days when one could buy a motorcycle with cash. 

The MSRPs of motorcycles have gone up significantly in recent years. The price hikes came after the COVID – 19. The reason is simple. OEMs are facing supply chain issues. 

Furthermore, Indian motorcycles these days, come with FI and a host of other passive safety features. Hence, to keep a certain degree of profit, OEMs had to hike the prices of their bikes. Hence, applying for a Two wheeler loan is the only way to buy a bike these days.

Furthermore, a bike loan also offers the borrower a host of benefits. 

Some of them are mentioned in the sections below – 

  • Bike loans, unlike personal, business or home loans, entail low-interest rates. Furthermore, with the help of a bike EMI calculator, one can choose the best tenure + principal combination. In this way, one can keep the EMIs and the interest rate on the borrowed money low, from the get-go. 
  • With the help of a bike loan, one would not need to break their FD. One also would not need to empty their savings. Or spend their emergency funds and have no financial cushion to protect them from future financial emergencies.
  • All lenders these days offer borrowers the option of applying for a bike loan online. Furthermore, one can also submit pertinent documents online. The best part, most lenders can process online bike loan applications within the same business day. It means that the borrowed money will be disbursed to the borrower’s account in no time. Thus allowing the borrower to take their dream bike home as soon as possible.
  • Repaying the debt via EMIs on time allows the borrower to boost their credit score. Furthermore, a bike loan also allows the borrower a chance to build a strong credit history. Strong credit history and credit score would allow the borrower to apply for hefty loans in the future.

For more details, please consult with a professional financial advisor.

Must read: How To Get A Bike Loan Quickly In Easy Steps?

Top Reasons Why Should You Apply for a Two Wheeler Loan

bike loan, Two Wheeler Loan

The prices of motorcycles in India have gone up. Hence, it makes no sense to purchase a bike with cash. 

Moreover, buying a bike through a Two wheeler loan has many benefits. Here are ten of them – 

A bike loan allows one to get the bike they want

A bike loan allows one to buy whichever bike they want. The price of the bike is not a matter of concern.

A bike loan allows one to keep their hands off their emergency funds

Buying a bike with a loan allows one to keep their hands off their savings. This ensures that one has emergency funds set aside for uncertain days.

Bike loans are affordable

Unlike other loan schemes, bike loans these days entail flexible repayment options, low interest rates and reasonable EMIs. For the best results, one must use a bike EMI calculator to learn about the best tenure + principal amount combination. This simple step will allow one to choose a bike loan with affordable EMIs and interest rates.

Bike loans boost one’s credit score and history

Buying a bike through a bike loan and paying off the debt via EMIs boosts one’s credit score and builds positive credit history.

Bike loans allow one to invest their savings on investment mediums

Buying a motorcycle via a bike loan can allow one to become richer. How? Well, one can choose to invest their savings in investment mediums and build their wealth.

A bike loan can allow one to become a master of money management

By applying for a bike loan, one can hone their money management skills. Honing one’s money management skills can ensure one has the means to pay off the EMIs on time.

For more details, consulting with a professional financial advisor would be a wise decision.

Must read: 

How We Can Calculate Bike Loan EMI Online ?

Know Why Bike Loan Is The Best Option To Buy A Bike

bike loan

When one buys a bike via financing, they can enjoy several benefits. Some of them are as follows – 

One can buy the bike they want

When one buys a motorcycle after they apply for a bike loan, they will be able to buy the bike they want. If they chose to buy a bike with cash, their options would have been limited.

Furthermore, most lenders offer 0 downpayment loans these days. A 0 downpayment loan allows one to take their dream bike home without spending a single penny as a downpayment. The entire MSRP of the bike will be borne by the lender.

There is a catch – 0 Downpayment loan that entails high-interest rates and hefty EMIs. Hence, one should read the terms of the loan scheme carefully before applying. 

One can keep their savings, FDs and emergency funds untouched

Bike loans can help one to keep their emergency funds, FDs and savings are intact. Motorcycles these days cost a lot of money. Hence, buying a bike with cash means emptying one’s cash reserves!

To keep such instances at bay, a bike loan seems like a good idea. The debt can be repaid in small EMIs + affordable bike loan interest rates. Thus ensuring that one would not need to feel financially burdened or stretch their monthly budgets further!

One can practice the discipline of keeping sufficient funds in their bank account

Paying EMIs on time is essential when one buys a bike via a motorcycle loan. Defaulting on EMIs entails hefty fines. Furthermore, it would also reduce one’s credit score and place red flags on their credit history. This is why maintaining the minimum balance in one’s bank account is essential. In case one often keeps INR 0 in their bank account, they can change this habit in no time. 

Must read: How To Get Instant Approval on Two Wheeler Loan?