In the last couple of years, bike brands in India have nearly doubled the prices of their entire line-ups. Sure the OEMs are doing this to turn a profit. But at the same time, they are increasing the prices to keep production costs low.
So what does this mean for the average Indian willing to buy a bike?
Well, anyone interested in buying a bike these days, has to apply for a bike loan.
Why not buy a bike with cash?
Buying a bike through a motorcycle loan makes more sense as a loan entails a lot of benefits.
Some of those benefits are mentioned in the sections below –
The person can buy the bike they want and not settle for one that is within budget
The prices of Indian bikes are not within the affordable range anymore. The incessant price of essential fuels like diesel increases mining and transportation costs. Hence, OEMs have to shell out more money to build their bikes. This is why the bike brands in India are hiking the prices of their bikes.
The price revisions are done to keep production costs low and keep some form of profit. But this left Indians in a jam as even entry-level commuter bikes now cost close to INR 90, 000. It is a sum that is not readily available as cash in the hands of many. Furthermore, buying a bike with cash leaves one with limited choices. If one wishes to own a bike they ‘want’ then they would have to apply for a motorcycle loan. A motorcycle loan throws budget constraints (as well as time limitations) out of the proverbial equation.
The person can keep their emergency funds untouched
When a person decides to buy a bike with cash, they would have to dip their hands into their emergency funds. An emergency stash can be one’s savings or FD. Whichever may be the case, if one uses up their emergency funds, they won’t be financially secured.
India might be on the verge of becoming a developed nation. But, it is still far from becoming a ‘cashless’ economy. In the age of UPI transactions and internet banking, cash is still the king in India. Hence, spending all the cash one has set aside to cover emergency expenses on a bike is a fool’s decision.
A bike loan lets a borrower buy the bike they want, whenever they want, without taking any financial risk.
It is as simple as that!
The person can make the best of low-interest rates
Back in the day, motorcycle loans were quite costly to bear for the average person. That is not the case anymore. Compared to business, home, car or personal loans, a motorcycle loan entails low-interest rates and affordable EMIs.
Furthermore, most lenders these days have a bike emi calculator tool on their official website. With the help of these free-to-use tools, borrowers can choose the best principal + tenure combination.
Why is choosing the best principal + tenure combination for a bike loan important?
It would allow one to ensure that the interest rate and the EMIs for their bike loan are within budget.
Custom debt prepayment clauses and absence of prepayment penalties
Another aspect that makes bike loans feasible is that most lenders offer loan schemes with custom debt repayment clauses. This feature of modern bike loans lets borrowers clear their debt before the tenure is over without paying a penny as a penalty!
How cool is that!?
The person can build their credit score and credit history with a bike loan
Bike loans are secured. Hence, every EMI paid to the lender for the loan lets the borrower build their credit score and history.
Strong credit history and a high credit score are a necessity these days. People with high credit scores and spotless credit histories can readily borrow large sums of money from leading lenders.
For more details pertaining to the benefits of motorcycle loans, the reader should consult a professional financial advisor.
