Reasons to apply for two wheeler loan in India
A two-wheeler loan gives you the flexibility to buy your dream bike. While many of us are still make ourselves confused between the options of buying a bike with the help of financial support or choosing to wait or pay the total amount using the hard-earned savings.
To clear all your doubts, here we share with you the top reasons to apply for a two-wheeler loan in India
Keep cash for emergencies and other contingencies
When you buy a bike via a two-wheeler loan, you not only keep your savings in the account, but you are also making sure you are not sinking all your emergency funds. This is a good strategy and can be of great help in dire situations. Emergencies arise unannounced. If your bank account is doing good, the stress level can be minimized, at least from a financial point.
Enjoy Tax Benefits
If you are a self-employed businesses individual looking to purchase a new two-wheeler, you can reap the benefits of tax-deductible interests on your two-wheeler loan. Upon purchasing the vehicle in your company’s name, you can also save a considerable amount of money on additional payments apart from loan interest repayments such as insurance, fuel, maintenance as these charges are deducted from your profits, allowing you to enjoy depreciation benefits.
Creates Financial Discipline
As a professional, you can get a tax exemption on the money lent under tax deductibles when you file your income tax return. This rebate is possible when you have an active vehicle loan.
Help in maintaining a financial discipline
When you apply for a two-wheeler loan, you agree to pay monthly EMIs. For this, you must have to keep sufficient funds in your bank account. It is only possible when you maintain a financial discipline by calculating your expenses beforehand taking into consideration all the future expenditures. Moreover, it teaches you the way of doing long-term financial savings.
Low-Interest Rates financing option
Thanks to the tremendous popularity of bikes in India, purchasing a two-wheeler is extremely stress-free. Several financial institutions are competing with each other to offer affordable and reasonable rates to increase the demand for two-wheeler loans in India.
Help in improvising the credit profile
If you want to build credit in an easier way, consider a two-wheeler loan. In a couple of years, you might plan to buy a car or a house. Both of these will require a considerably higher amount of capital than a bike, and when you plan to buy these items, you will very likely do it with the help of financing. Now when you apply for a loan, your credit score is used to determine the interest rate. The higher the credit score, the better the interest rate and the lower the EMI. So, if you take out a two-wheeler loan and pay it on time, you tend to show good financial behavior, leading to an improved credit score.
Bottom line
Two-wheelers are the most popular transportation mode. They are having a maximum demand in the market. But everyone still is not able to afford the bike with their savings. Even those who are having surplus cash may also sometimes get confused between these two financing options. Hope the above reason will help you in making the right decision.
