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Buying a Bike with Motorcycle Loan as Against Through Cash Purchase

  • alinamass 

Owning a bike has today made everyday commute significantly simpler and convenient. The increasing demand of these vehicles is a clear indicator of their growing popularity. Traditionally, the purchase and sale of bikes were dealt in cash owned by the buyer by way of savings. However, the increasing need for managing the finances efficiently has led individuals to look out for funding options to finance such purchases. Consequently, various lending institutions today provide dedicated financing options like motorcycle loans to simplify vehicle purchases with minimal financial strain.

Purchasing your bike through a two wheeler loan comes with its fair share of advantages one may loom forward to. Such benefits reach way beyond the convenience of bike purchases through cash. Below mentioned are some critical aspects that make motorcycle purchase through a bike loan way more beneficial than its cash purchase.

Overall Strain on Your Budget Reduced

The first and foremost benefit of bike purchase through a motorcycle loan rather than through cash payment is that it immediately brings down the possible strain on your budget. In case you had purchased your desired bike through cash payment, it would have meant draining your personal finances to complete the transaction for bike ownership. As any common person making such purchases must cut down on required expenses to complete such hefty payment, it would mean unnecessary strain on one’s long-term budget for fulfilling this goal.

As against such a hardship, one can easily opt for a bike loan alternatively to complete the purchase without additional strain on the finances. A bike loan is a funding option that fulfills immediate financing needs for bike purchase and requires the borrower to repay the advance to the lender through monthly installments over an agreed tenure. It thus brings allows one to manage the finances conveniently.

Deferred Payment Towards Your Bike’s Cost

As mentioned earlier, availing a bike loan comes with the responsibility of monthly repayments to be made over a term and until the loan liability is repaid in full. Such a funding option not only provides the right financing at the right time, it also means one would need to pay the cost of the bike over the long term, thus deferring such payment.

It allows a bike loan borrower to plan the finances better and also provides the benefit of paying a set cost for bike purchase which might have been subject to increase by the time one completely repays the loan. This means that even if the cost of your purchased bike model goes up, you pay only the amount that was initially agreed as included in the EMIs. Also, in case the value of money reduces due to increased inflation, you still end up benefiting from the initial agreement regarding the bike’s cost and continue repaying for such amount only, thus benefiting in the long run.

Financing of High Value Available

Bike loans provided by reputed lenders are usually high-value advances that come with a borrowing limit of up to Rs.10 lakh easily if the borrower meets certain lender-based criteria. So, if you are purchasing a bike that costs Rs.3 lakh, you need not worry about the availability of funds saved by you as the financing option would be able to easily fund such purchase without much hassle.

Availability for All Bike Makes and Models without Limitation

Using cash to make a bike purchase comes with the limitation that you would need to select a bike model that fits within your budget so you can easily pay for it through savings. However, a bike loan eliminates such limitations, allowing you to choose any bike make and model for purchase. You only need to check that the loan amount being availed is affordably repayable monthly through EMI computation.

Besides, a motorcycle loan comes with a competitive rate of Interest, which makes it affordable for borrowers too. One only needs to pay interest at a low rate as a cost of such borrowing for the full loan repayment. Not to mention, bike loan-based two wheeler purchase means the availability of spare funding available for other purchases too.