Two wheelers are among the most cost-efficient mode of personal commute today, allowing individuals to travel conveniently. These vehicles are also among the go-to commuting options when travelling through areas of high traffic as they are easy to navigate with. Combined with the easy availability of a two wheeler loan presently, it has become significantly convenient to purchase a two wheeler today.
As for bike loans, these are tailored financing options that allow individuals to finance the cost of their selected bike models during vehicle purchase. They are thus great complimentary options that one can go for when planning bike purchase. Currently, the market for bike loans has been a hit among prospective two wheeler buyers due to various reasons. If you are among those seeking the financing in future to buy your desired bike model, here’s an insight into the factors related to bike loan market trends that can be useful for you.
Factors Driving the Rising Market Demand for Two Wheeler Loans
In recent times, the market for bike loans has witnessed a rising demand due to various critical factors. While some of these are directly related to the financing option, others are related aspects that govern these trends over time. Here’s a look.
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Competitive interest rates and charges
The increasing number of two-wheeler loan providers in the financial market has driven lenders to provide the best loan features at competitive rates. One can thus avail the advance at affordable rates either through lender comparison or by leveraging eligibilities for negotiations.
The overall impact has been an increasing inclination towards availing these advances as they have become more financially accommodative for the purpose of bike purchases. Concurrently, there has also been a decline in other rates and charges levied by various lenders, bringing down the overall cost of a bike loan, thus making these advances more feasible than ever. With no doubt, it has improved the overall demand for these advances in recent times.
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Easy loan availability online as well as offline
Today, it is comparatively easier to avail a bike loan than it was a few years back. With lending institutions expanding their branches and services to the remotest of locations in India, one can easily proceed with the loan application through the selected lender.
Plus, the facility to apply for a bike loan is available both online and offline, which means that apart from your nearest lender branch, you can also send application from the comfort of your home. All you need to do is access the lender’s official website from your internet-connected device and navigate to the page hosting the application form, then fill it with necessary details. This facility has made it possible for individuals from far-off places to apply for a two wheeler loan with a lender in their city or any other place. One would only need to meet the simple eligibility requirements to apply.
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Attractive loan features
Another common reason for the rise in popularity of bike loans in the financial market is the various attractive features that these advances come with. They combine to make the advance more easily manageable while fulfilling the financing needs of the borrowing individual.
For one, a prospective borrower can avail high-value financing of up to Rs.1 Lakh as bike loan to purchase his/her desired two wheeler model. One can also select a suitable tenure with flexibility of up to 5 years for repayment of the advance in easy EMIs. Other popular features of the financing option include several repayment modes, option to foreclose the loan account at low to no charges, a high LTV of up to 90%, and the likes that you can access with reputed lenders.
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Increasing disposable incomes of individuals
The increase in disposable incomes of people has also been one of the prime driving causes for the rising demand and popularity of two wheeler loans. The trend has been more common in urban and semi-urban regions of the country.
With the increasing incomes of people in these regions, the overall disposable income after having met the fixed and variable monthly expenses has increased too. This means that the available funds can be easily allocated to other lifestyle goals requiring financing, such as paying EMIs for loans availed for bike purchase.
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Rising demands for electric-based two wheelers
Lately, there has also been an increase in demand for electric bikes in the market. As these bikes are usually available as high-end models, financing their purchase requires one to invest significant sum. As spending for the purchase through hard-earned savings can erode the financial cushioning one enjoys, individuals seeking such bike models usually resort to dedicated loans to complete purchase. It has invariably contributed to the overall increase in demand for bike loans coming from such bike ownership aspirants.
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Increasing popularity of high-end luxury bikes
People have also been aspiring to purchase luxury bike models today more than ever. Obviously, these vehicle models command much higher prices than their regular counterparts. The average price of a luxury bike can easily range around Rs.60,000 to Rs.70,000 and even more. Thus, the smart financing alternative to purchasing such bike from personal funds is to go for a bike loan from a reputed lender. This has again inadvertently led to the rise in demand for two wheeler advances.
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Increasing demand for two wheelers in rural areas
Concurrently, the rise in demand for bike loans coming from rural regions of India has also been on the rise overall as compared to the past few years. The growing awareness among individuals of these regions along with factors like affordability, easy application and ease of repayment have contributed to the overall increase in demand coming from rural areas of the country.
As these aspects indicate a recurring trend over the time, one can safely conclude that the futuristic demand for two-wheeler loans remains bright. Nevertheless, it is always prudent to compare lending institutions based on the interest rates offered and other features provided before finalising the loan option to apply for.