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10 Reasons Why a Two-Wheeler Loan is a Smart Investment

10 Reasons Why a Two-Wheeler Loan is a Smart Investment
In India, two-wheelers are the most popular mode of transportation. They are affordable, fuel-efficient, and can navigate through traffic easily. However, not everyone can afford to buy a two-wheeler outright. This is where a two-wheeler loan comes into play. A two-wheeler loan is a type of secured loan that is specifically designed to finance the purchase of a two-wheeler.
In this article, we will discuss 10 reasons why a two-wheeler loan is a smart investment for Indian buyers and the benefit of two wheeler loan.
 

10 reasons why a two-wheeler loan is a smart investment

 
As mentioned earlier, two-wheeler loans are easy to avail. Most financial institutions offer two-wheeler loans, and the process is simple. To apply for a two-wheeler loan, you need to submit some basic documents such as identity proof, address proof, income proof, and photographs. Once you submit the documents, the financial institutions will verify them and process your loan application.
 

  1. High cost of commuting using cabs or taxis

    Owning a two-wheeler is a cost-effective alternative for commuting through the city. Though today, we have easy transportation facilities, but the convenience and cost of a two-wheeler are unbeatable. The cabs and taxis are expensive while public transport is a bit inconvenient. Thus, getting a two-wheeler can prove to be a smart investment.
     

  1. Improves Your Credit Score

    If you buy a two-wheeler on finance, then it might help improve your credit score by creating a good mix of the debt portfolio. A two-wheeler loan is a secured loan, while a credit card is a revolving loan and a personal loan is an unsecured loan. Having a diversified credit portfolio can help establish a good credit score. In addition to that, making regular and timely payments can improve your credit score.
     
Also Read: Top 5 Aspects to Consider before Taking a Two Wheeler loan
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  1. Flexible Loan Process

    Nowadays, it is very easy to buy a two-wheeler in finance. With a number of financial institutions offering attractive deals on two-wheeler purchases, you can easily get a two-wheeler on loan. You can apply for this loan at the dealer’s office, at a bank, or you may opt for an online loan and apply online.
     

  1. Flexible repayment tenure

    One of the key benefits of two-wheeler loans is the flexible repayment tenure. You can choose a repayment tenure that suits your financial situation. Most financial institutions offer repayment tenures of up to 5 years, which means you can repay the loan in affordable installments over a longer period of time. This makes it easier for buyers to manage their finances and pay back the loan without any financial burden.
     

  1. Attractive-interest rates

    Two-wheeler loan interest rates are low compared to other types of loans. This is because two-wheeler loans are secured loans, which means the two-wheeler acts as collateral for the loan. The lower interest rates make two-wheeler loans a cost-effective financing option for buyers.
     

  1. Quick processing

    Two-wheeler loans are processed quickly. You can get loan approval within a few hours or a day. This is particularly useful if you need to buy a two-wheeler urgently. The quick processing also helps buyers to plan their finances better and make informed decisions about the purchase of the two-wheeler.
     
Also Read: Know About the Top Eight Advantages Of Two-Wheeler Loans For Women
 

  1. Make an investment opportunity available

    Spending your earnings to purchase a two-wheeler deprives you of the option to invest and build wealth. With your extra cash, you may invest in stocks, mutual funds, or any other vehicle of your choice and make significant returns. It also helps you keep your emergency reservoir safe for any kind of financial crisis.
     

  1. Insurance protection

    When you utilise an auto loan to purchase a two-wheeler, you get extra benefits such as insurance and accidental coverage. According to the Indian Motor Act, lenders must provide a loan with insurance coverage for the vehicle as well as accidental protection for the owner. Most lenders have agreements with insurance providers, providing a quick and hassle-free procedure and the ability to get insurance coverage at favourable rates.
     

  1. No Need to Compromise, buy the brand of your choice

    With a two-wheeler loan, you don't need to compromise on the model or brand of the two-wheeler you want to purchase. You can choose the two-wheeler that you want and apply for a loan accordingly.
     

  1. Easy Repayments in terms of EMIs

    When buying a two-wheeler, paying upfront may seem like a challenge because of the need of a lump-sum amount. However, a two-wheeler loan allows you to spread this lump-sum payment over a fixed tenure. Thus, allowing you better affordability and management of your finances. 
     

Conclusion

 
In conclusion, a two-wheeler loan is a smart investment for Indian buyers. It is easy to avail, has a flexible repayment tenure, low-interest rates, no collateral required, quick processing, helps build your credit score, has no prepayment penalty or hidden charges, and allows you to own your two-wheeler without putting a strain on your finances. When looking for a two-wheeler loan, it is important to compare the interest rates offered by different financial institutions to find the best deal that suits your financial situation. With the right loan, you can make your dream of owning a two-wheeler a reality.
 

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Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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