As per the statistics, working-class individuals spend 6% of their income on transit. Besides, they spend an average of 45 minutes traveling to and from their workplace. This figure keeps ascending every year. That is where a bike can be a bonanza. If you own a two-wheeler, you experience a sense of freedom. It helps you have a hassle-free trip and enjoy maximum time with yourself and your family.
Nowadays, you have several options to get loans that have made purchasing commodities easier. Opting for a bike loan is a very thoughtful approach as it minimizes the hardship of paying a lump sum amount in one go. Banks and bike finance companies offer the option of repaying the loans in feasible monthly installments. Other tangible benefits are:
- These pocket-friendly bike loans do not comprise a lump sum. It enables you to repay them in no time. When you have never raised a loan earlier, it boosts your creditworthiness even more. Time-to-time repayment of the EMIs will help you create an appealing financial history. Your creditworthiness will pay off when you raise a loan in the future.
- Paying a monthly EMI makes you financially responsible. Though a small amount, it keeps reminding you to be more reasonable while spending money.
- An outright purchase might restrict your choices, whereas by selecting an EMI, you can also choose to get a fanciful pair of wheels as the monthly installment differential is not towering.
Bike Finance Companies vs. Banks
Unlike banks, bike finance companies need not adhere to the guidelines and rate policies of the RBI. Their operations are subject to the factors such as competition, retail prime lending rates, etc. Therefore, these companies are the go-to option owing to their competitive interest rates and the best bike loan policies. The other benefits are as follows:
- Both public and private banks adhere to the Banking Regulation Act of 1949. On the contrary, the operations of the bike finance companies are in alignment with the Companies Act of 1956, making them more approachable for loan applicants. These organizations’ objective is customer satisfaction, resulting in instant loan approvals and disbursals. They spend little time in the cumbersome scrutiny of eligibility criteria, creditworthiness, etc.
- NBFCs (Non-banking Financial Companies) speculate the loan repayment potential of an applicant with the help of artificial intelligence and machine learning. They find it befitting to disburse loans even to applicants having a credit score of 600. On the contrary, the banking system emphasizes credit scores. The applicants scoring below 750 are not eligible to avail of the loan benefits.
- The loan repayment period offered by the NBFCs is around five to seven years. On the contrary, the banks have a repayment period of one to three years. Take the help of a bike EMI calculator for better speculation of the tenures, interests, and installments. It will help you choose the service that offers you the best deal.
- Banks would finance only sixty to seventy percent of the vehicle’s on-road price, and NBFCs offer 100% finance on your bike’s on-road price.
- Choose NBFC as your financial partner and circumvent the hassle of paying 15 to 30% of your two-wheeler’s showroom price to banks.
Also Read: Light weight bikes in India
Methods to know the status of loan application
Once you have applied for the loan, you will be curious about the status of your application. So the methods to track the status are as follows:
- To know your application’s online status, you can search online on Google – Hero FinCorp loan status checks.” It will help you find the required webpage. Know your loan application status by entering your details, such as your email ID, mobile number, date of birth, and loan application. Your loan status is shared with you after confirmation through an OTP sent to your registered mobile number or email ID. Inform the nearest branch if your registered email ID or mobile number is obsolete.
- A phone call or a mail to customer care is also a convenient alternative. Besides, a phone call is a faster method as it helps you know the application status on the call in no time.
Conclusion
Nowadays, getting two-wheeler loans is easier than ever. Make sure you meet the eligibility requirements and will have your dream bike in no time. Do thorough and meticulous research about all the terms and conditions to get the best deal.