Can I Use Personal Loan to Purchase a Bike?

To divide or not to divide savings? When getting a bike, this is always the first question. But spending all your hard-earned cash at once is never a good idea. You must have sufficient money to cover unexpected costs and needs quickly. Instead, get a personal loan to buy the bike of your dreams.

Now, you might wonder why you shouldn’t just get a loan for a two-wheeler. Let’s say you have to choose between a personal loan and a personal loan for the bike. In such cases, a personal loan is the better choice.

Why Use a Personal Loan to Buy a New Bike?

Two-wheelers are one of the most popular ways to get around the country. They are light and fast and can help riders quickly get from one place to another. Suppose you don’t have sufficient cash to buy a new bike or don’t want to use your earnings for the purchase. In such a situation, you can request a loan to start making the purchase easier. You can get a two-wheeler or personal loan to pay for a brand-new scooter or motorcycle. In India, these two types of loans are given by both banks and NBFCs.

Advantages of Getting a Personal Loan to Buy a New Bike

Whenever you go for a personal loan, you can benefit from the fact that the loan isn’t tied down to anything. This means you don’t have to purchase collateral or provide security when you ask for a loan. Also, the interest rates on personal loans aren’t too bad. So, borrowing money to buy a bike won’t cost much in the long run.

If you make a proper strategy to spend your money well, you can be confident that you’ll be able to pay all your other monthly bills. The best part of a personal loan is that you are not required to tell the lender that you want to buy a bike with the money.

You can get a personal loan to buy a top-quality bike, an everyday scooter, a sports bike, or an adventure bike. You can also get a personal loan if you want to buy a brand-new or used two-wheeler.

Top Reasons to Take Out a Personal Loan to Buy a Bike

• Price for 100% on-road.

The on-road price can be paid in full when you get a personal loan to purchase a new bike. This is a big help because most lenders only finance up to 90%. So you will not need to worry about putting money down on your loan. You will have to pay a certain amount upfront if you want to use a two-wheeler loan to buy a car.

• There is no need to put money down.

When you rent a bike, you will have to put down a deposit. After talking with your lender, you will have to decide how much you will put down. Most of the time, they only finance 80 to 90% of the vehicle’s “on-road” price.

When you get a personal loan to buy a bike, you won’t have to make a down payment. You can get a loan for the full price of your bike.

• There is no requirement for a credit history.

Most people buy their first bike when they finish college or obtain their first job. During these times, a person may not have a credit history because they haven’t applied for credit yet. When you apply for a loan for a two-wheeler, your lender will ask for information about your credit history, or CIBIL score. 

You need good credit to be able to get a loan for a bike. You could wait a few years, get a good credit score, and then try to get a loan for a two-wheeler. You could just get a loan for yourself. Even for personal loans, lenders want to see CIBIL scores. 

• Low rates of interest

Generally, the interest rates on a personal loan are lower than those on a loan for a two-wheeler. The interest rate on your bike loan will depend on how much money you make, how long you need the loan, what kind of bike you have, how old it is, etc. If any of these things don’t meet the lender’s requirements, you may have to pay a very high rate of interest. 

• Easy-to-understand loan requirements

Loans for a two-wheeler are harder to get than loans for a car. For a loan for a two-wheeler, the minimum income requirement is a bit higher. If you get a personal loan and have a good monthly income, it won’t be hard to pay the monthly payments. So, if you can get a personal loan that doesn’t cost too much, you can buy that cool bike you’ve been looking at every day at your local bike shop or online.

• Personal Loans with Shorter Terms

When you get a personal loan, individuals can pay it off faster. Most personal loans have terms between six months and five years. When the loan term is shorter, you won’t have to pay interest for many months. You can pay off your loan quickly if you are good with your money. You save a lot of money when you select a shorter loan term with less interest.

Conclusion

You can now choose whether you want a personal loan for a bike or a personal loan. You can get a personal loan either online or in person. To apply online, you must go to the lender’s official website or a third-party financial website. You can compare personal loan interest rates, penalties, processing fees, and other features on the internet.

Once you decide, you go for a loan and then purchase your bike. To apply offline, you can go to a branch of your creditor. Then talk to an employee, who will give you the details and help you fill out the application.

Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.