Two Wheeler Loan in India
Today’s youngsters are crazy for bikes. The new model in bikes has been increasing at a faster pace thus attracting youngsters. Also with advanced models and new features the price tag of bikes has increased. Not every individual who wishes to own a bike has sufficient funds and thus the need is suppressed. Such individuals can apply for bike loan from various banks thus making their dream come true.
Knowing the price of the bike in advance will help to opt for loan which is best suitable. You can opt for type of loan which suits your needs and it can be availed for new bike or used bike.
The borrower considering his need and financial condition can opt for either type of bike loan:
- Secured Two Wheeler Loans
- Unsecured Two Wheeler Loans
Secured Two Wheeler Bike Loans: Secured Bike loan means loan against security. The loan applicant has to pledge his bike property like home, land or any other valuable property against the loan taken. It gives security to the lender of repayment of loan and in case of default the lender can seize the property pledged. The rate of interest for secured bike loan is reasonable as the risk of default is less. Secured Two Wheeler loan can be taken if the financial need is high.
Unsecured Two Wheeler Bike Loan: Unsecured bike loans are not secured against any valuable asset of the borrower whether tangible or intangible. Here the risk of default is high and thus the rate of interest is also high. These loans are best suitable for those whose financial need is not high. Thus he need not pledge his property or any valuable asset. Unsecured bike loan is more expensive than secured bike loan as there is more risk of default.
In India, banks like ICICI, HDFC, etc provide such loans to meet the financial needs of the customers. Online forms are available which reduces the time taken for granting of loan thus making it simpler. Also if you want to purchase the bike on installment basis there are various options like hire purchase, dealer finance, personal loans etc. Before opting for any type of loan option proper knowledge for the same is important.
The various options for purchase of bike on installment basis:
- Hire Purchase Agreement
- Dealer Finance
- Personal Loan
Hire Purchase agreement allows you to buy the bike on installments but you are not the owner of the bike till the last installment is paid. The bike is in your possession but you are not the owner of the bike and thus can’t sell till the last installment is paid.
In dealer finance, you are financed by the dealer from whom you purchase the bike. They have tie ups with various banks like ICICI, Bank of Maharashtra etc. who finance the needy. Here you are the owner of the bike once you purchase it.
In personal loan, students can opt for such loan. They can visit various sites for the best rate of interest thus saving on the cost and also fulfilling the need. The rate of interest offered by various lenders can be compared and the minimum should be opted for.
Thus bike loans are useful for the individuals who want to own a bike but have financial crunch.