What are the Benefits of Two Wheeler Loan?

A two-wheeler loan is the easiest way to fulfil your dream of purchasing a bike as it comes with attractive interest rates, flexible repayment tenure of up to 5 years, and a host of other benefits. Be it visiting the market to buy groceries, dropping kids to school, or travelling through the city; a two-wheeler is something that serves most of the purpose and makes it a necessity for every house.

Here are a few reasons why you should prefer a two-wheeler loan against buying it with your own money.

Benefits of Taking a Two-Wheeler Loan:

1. Quick Approval of Loans- Remember the days when you had to wait for months for a loan to be approved or stand in queues outside financial institutions. Well, those days are gone as there has been a significant improvement in the loan approval process over the last few years. The sanctioning time of the two-wheeler loan has come down to a day. Two-wheeler loans are approved in a very short time. You can either fill an online application or visit a financial institution to apply for a two wheeler loan. After your application is approved, the loan amount is transferred to your bank account immediately.
   
   
2. Affordable- The two-wheeler loans are quite affordable as it offers low-interest rates, processing fees, and documentation charges. Ideally, the interest rates depend upon the bike that you want to buy. However, due to an increase in the number of individuals in the finance market, interest rates have fallen drastically. Thus, making it affordable for everyone. Two-wheeler loan comes with the low processing fee and documentation charges. 
   
   
3. Tax and Depreciation Benefits- You can claim tax and depreciation benefits on your interest repayments if you are a self-employed business individual or a salaried professional. However, this benefit is available only to those who use two-wheeler for their business or profession.
   
   
4. Helps with the CIBIL score- You don't have to face any financial burden when you apply for a two-wheeler loan. You can choose the monthly instalments to repay the loan amount. As the interest rate is fixed, you don't have to look at your repayment schedule every month. The cost of buying a two-wheeler is less that helps young professionals to start with their CIBIL scores.
   
   
5. Quick Processing- Most of the financial institutions offer online application process so that you don't have to stand in queues and wait for hours to talk to a bank representative. The entire process is very simple and quick. Your loan application is processed within 2 to 3 days, and the amount is disbursed into the dealer's account from where you are buying a two-wheeler. This requires minimal documentation.
   
   
6. Smaller Tenures- Two-wheeler loan comes with an option wherein you can choose a smaller tenure. These tenure duration for two-wheeler loans usually range from 6 months to 5 years. If you select a shorter tenure to repay your loan, you can save a good amount on the interest that you have to pay. You can repay your loan quickly by being a little financially disciplined. Thus, choosing a shorter tenure helps you to pay lesser interest and save extensively.

Additional Read: Tips to Get the Best Two Wheeler Loan in India