Covid-19 pandemic has severely impacted the automobile industry in India and the two-wheeler sales have gone down drastically. Bike manufacturers have never experienced a slump like this in decades and the inventory has piled up in their godowns and showrooms all across India. The Coronavirus has impacted the daily life of regular commuters and more and more Indians are considering buying a bike or a scooter to avoid future public transport. Social distancing has become a norm in every state of India and people want to travel safely by their conveyance to prevent contact with people at bus stations and metro stations.
How bike loan can make your purchase easier in Covid-19
The sudden drop in two-wheeler sales due to Covid-19 has prompted bike manufacturers to offer attractive discounts to the discerning buyers to boost sales. The banks and private lenders have also reduced interest rates on bike loans to make it affordable for middle-class buyers to purchase the bike of their dreams.
With the social distancing appearing to be a long-term measure in companies across Indian cities, the salaried class is opting for a two-wheeler to commute safely to the office. With salary cuts happening in almost every company, online bike loan seems to be a viable option to purchase a bike at low-interest rates instead of making a full down payment.
The offers and discounts being offered by two-wheeler manufacturers post lockdown are quite tempting and the bike loan interest rates have also become affordable for many distressed buyers who are running tight on their budget. Before the COVID-19 outbreak, it was observed that Indian commuters preferred to travel in public transport rather than drive their vehicle but the tables have turned after the Coronavirus pandemic. There is a sudden rush for buying bikes and scooters as they are the most economical means of commuting in Indian cities.
The purchase of a bike or scooter is based on a future stream of income and its dependability. By deciding to buy a two-wheeler on loan, the repayment of the loan through Equated Monthly Installments leaves enough money in the wallet to comfortably manage the household. While deciding on a bike loan, it is recommended to do an extensive online search by visiting the websites of banks and private lenders and compare the bike loan interest rate. Once you have shortlisted the lender and your documents are verified, you can negotiate the rate of interest and work out the EMIs before making a down payment.
The bike loan can make your purchase easier as you are not required to shell out the entire amount in one go. By making a down payment of 10 percent of the total cost of the bike, you can get your dream bike at low-interest rates. Some lenders even provide 100 percent bike finance to the buyers who have an excellent repayment track record and maintain good credit scores with credit rating agencies.
You can apply for a bike loan online in a few clicks from the comfort of your home. Just logon to the bank website, fill up the loan application, upload the required documents and your application will be sent for verification. You will get to know within three working days if you are eligible for the bike loan and you can then make a small down payment to take the delivery of the bike from the showroom.
You also have a choice to call the bank executive at home or at your office to explain to you the application process and handover the documents for loan processing. Most banks and private lenders charge a processing fee for a bike loan. The documents required for a bike loan include ID proof, address proof, six months’ salary slips, and six months’ bank statements. Make sure you maintain a good credit score with credit rating agencies to eliminate chances of loan rejection.
Once your bike loan is disbursed and you take the delivery of the vehicle, your EMIs will start getting debited from your bank account through ECS clearing. Every instalment of the loan that you repay will be partly made up of principal repayment and partly of bike loan interest payment. Once you complete your loan repayment, you can apply for the removal of hypothecation on your vehicle to gain complete ownership.