All sectors of the global economy were in shambles even a few months back no thanks to the COVID-19 pandemic. The primary reason for this was the disruptions in global supply chains. Manufacturers from all sectors are still struggling to get back to their full capacities.
This situation is also applicable to the Indian motorcycle manufacturing sector. One can even have their hands on proof in the form of repeated motorcycle price hikes. When asked, spokespersons of bike brands often cite high input costs as the reason for this move. The situation has escalated to such an extent that an entry-level commuter motorcycle now costs more than INR 1 lakh!
It means that people with plans to buy a bike now have no other option left other than applying for a bike loan.
Why not spend the cash that one has in their savings account?
The reason is simple. One will not be able to enjoy the many benefits that entail a motorcycle loan.
What are those benefits?
They are mentioned in the sections below.
Bike loans allow one to have multiple options at the dealership
It is already mentioned that Indian bike brands have adopted the trend of incessant price hikes for their bikes. So does that mean that the sales of motorcycles in India have dipped?
Certainly not!
Surprisingly, the opposite can be seen. In recent months, the sales of motorcycles in India are at their peak. Riding on this wave of increased sales, bike brands are launching a torrent of new bikes. The reason for this impressive growth of the Indian motorcycle sector is that bikes entail low ownership costs. Furthermore, Indian motorcycles now come with advanced safety features and related modern specifications.
What does the information shared above have to do with motorcycle loans?
Good question.
When the number of options increases, it is human nature to yearn for the best product. And the best product will always entail exorbitant price tags. A loan helps one to get the bike they want and not settle for one that fits their limited budget.
It is as simple as that!
Bike loans allow one to cap excess monthly expenses
It is now news that the majority of the Indian population consists of the middle class. People belonging to the middle class have a fixed monthly expense plan. An individual belonging to the middle class will always try their best not to deviate from their budget. The reason is simple. Breaking one’s fixed monthly budget can leave one scrambling for cash at the end of the month. There could be instances where the person had to liquidate their savings or raid their fixed deposits!
Buying a motorcycle with cash compels the average Indian to spend money from their savings. This step, according to professional financial advisors is financial suicide!
The whole aforementioned conundrum can be avoided by simply financing the bike one wishes to own. Motorcycle loans act as a financial buffer that keeps the borrower tension-free. It also allows them to remain within their financial means by keeping additional financial obligations at bay.
The interest rates of bike loans are reasonable
The interest rates of motorcycle loans are lower than a home, car, business, or personal loan. This is the current scenario. This was now what it used to be back in the day. The reason is that motorcycle loans were niche financial products as the demand for the same was low. People used to buy bikes with cash as a motorcycle entailed affordable price tags. These days, motorcycle loans are popular financial products. Hence, to remain competitive, traditional and non-traditional lenders try their best to offer competitive interest rates.
In this context, an informed borrower will always use a bike loan EMI calculator before applying for a loan! Using these free-to-use tools would help one to select the lender that offers the lowest interest rates on bike loans.
Applying for a bike loan is a winning move especially if one is serious about their finances. To learn more about the upsides of motorcycle loans, one should consult a professional financial advisor.