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 high traffic areas as they are easy to navigate with. With the easy availability of a two wheeler loan, 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 a vehicle purchase. They are thus great complimentary options that one can go for when planning a bike purchase. The market for bike loans has been a hit among prospective two-wheeler buyers for 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 Starting the Growing Market Demand for Two Wheeler Loans
Recently, 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.
1. Competing Interest Rates and Charges
The expanding number of two-wheeler loan providers in the financial market has encouraged lenders to provide the best loan features at competitive rates. One can thus avail of the advance at affordable rates either through lender comparison or leveraging negotiations’ eligibility.
The overall impression has been an increasing inclination towards availing these advances as they have become more financially accommodative for 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.
2. Quick Loan Availability Online as Well as Offline
Today, it is relatively easier to avail of a bike loan than a few years back. With lending institutions expanding their branches and services to the most exclusive 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 possible both online and offline, which means that apart from your nearest lender branch, you can also send applications from the comfort of your home. All you need to do is access the lender’s official website from your internet-connected device and operate to the page hosting the application form, then fill it with the 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.
3. Engaging Loan Features
Another obvious reason for the popularity of bike loans in the financial market is these advances’ several engaging features. They combine to make the advance more easily manageable while fulfilling the financing needs of the borrowing individual.
Several repayment modes. For one, a prospective borrower can avail of high-value financing of up to Rs.1 Lakh as a bike loan to purchase their desired two-wheeler model. One can also select a suitable tenure with the flexibility of up to 5 years to repay the advance in easy EMIs. Other popular features of the financing option include:
- The option to foreclose the loan account at low to no charges.
- A high LTV of up to 90%.
- The likes you can access with reputed lenders.
4. Growing Disposable Incomes of Individuals
The rise in disposable earnings 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 must meet the fixed and unsteady monthly expenses has increased too. This means that it can easily allocate the available funds to other lifestyle goals requiring financing, such as paying EMIs for loans availed for bike purchases.
5. Increasing Demands for Electric-Based Two-Wheelers
Lately, there has also been an improvement in command for electric bikes in the market. As these bikes are normally available as high-end models, financing their purchase requires investing a significant sum. As spending through hard-earned savings can erode the financial cushioning one enjoys, individuals seeking such bike models normally resort to dedicated loans to complete the purchase. It has invariably contributed to the increase in demand for bike loans from such bike ownership aspirants.
6. The Growing Popularity of High-End Luxury Bikes
People have also been trying to buy luxury bike models today more than ever. These vehicle models command much higher prices than their regular counterparts. The normal price of a luxury bike can easily range from Rs.60,000 to Rs.70,000 and even more. Thus, the smart financing alternative to purchasing such a 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.
7. Rising Demand for Two-Wheelers in Rural Regions
Concurrently, the increase in demand for bike loans from rural India has increased overall compared to the past few years. The growing awareness among individuals of these regions and factors like affordability, easy application, and ease of repayment have contributed to the overall improvement in demand arising from rural areas.
As these aspects indicate a recurring trend over 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.