If you are looking to buy a two-wheeler with the help of loan, then there are advantages to taking a personal loan and a bike loan. Based on financial and personal requirements, one can choose what is best suited.
If you are looking for a lower rate of interest, then a two-wheeler loan would be advisable as it is a secured loan and the interest rates begin at just 9% and go upwards whereas personal loans begin at 11.25% as they are unsecured loans and can go upwards based on the customer’s credit profile.
If you want a loan amount for more than just the cost of the two-wheeler, then you can opt for a personal loan. Personal loan amounts are given up to Rs.40 lakhs based on the customer’s credit profile and so you can use it to buy the two-wheeler and use the remaining loan amount for other financial needs. If you are only looking to buy your bike, then you can get a two-wheeler loan as many lenders finance 100% of the bike’s on road price along with registration and insurance in some cases.
The tenures of a personal loan span from 6 months to 5 years, whereas the tenures for a two-wheeler loan are generally only up to 4 years. Some banks offer 5 years for two-wheeler loans, but it is not very common.
If you do not want to pledge the two-wheeler you are buying as collateral, then a personal loan would be advisable as they do not require any collateral. In the case of a two-wheeler loan, the bike itself is considered as collateral and failing to repay the loan can lost you the bike itself as the lender has the rights to sell the bike to compensate for the loan.
So, based on the factors that are convenient for one’s requirements, one can either opt for a personal loan or a two-wheeler loan.
To apply for a personal loan, click here.