How to use a two-wheeler loan for education purposes?
Loans by Team Drivio | 19th May 23
For students, qualifying for a two-wheeler loan is easy. These loans can help you purchase your motorcycle to ease up navigation between your college or university, coaching centres, and home. Besides, you can free up funds to finance your tuition fees with low motorcycle loan EMIs.
Being a student, you’d naturally prioritize the freedom of commuting to your college or institution. The ease of navigation on a two-wheeler remains unmatched, particularly when you make your way through heavy traffic. As you struggle to focus on your academic priorities, a two-wheeler loan can come to your rescue.
In India, motorcycles and bikes are incredibly popular among students who need to reach their institutions on time. Then you may have private tuitions, coaching classes, part-time jobs, and other places to attend. Owning a motorcycle simplifies your lifestyle, aiding you with a fast and reliable transportation method.
Reputed banks and NBFCs have come up with low-interest two-wheeler loans for students. Now, you might be wondering how you can use a two-wheeler loan for education. We have discussed the prospect of education financing through two-wheeler loans in this article.
What are the features of a two-wheeler loan?
A two-wheeler loan for students is different from traditional motorcycle loans. Top banks and NBFCs understand that most students lack financial stability. To ease up the repayment process, they offer flexible tenure and low-interest rates. This implies that students wouldn’t be financially stressed while paying EMIs.
If you are planning to take a two-wheeler loan for education, have a look at the salient features of a motorcycle loan for students.
1. Guarantor or co-applicant
Banks and NBFCs require students to have a guarantor or co-applicant to qualify for two-wheeler loans. Since students lack a consistent income through a job or business, it’s mandatory for them to apply along with a guarantor.
2. Flexible repayment period
In the case of traditional motorcycle loans, the minimum repayment tenure is one year. On the other hand, two-wheeler loans for students come with three years as the minimum repayment tenure. With a longer repayment period, students wouldn’t be financially burdened while paying EMIs. This implies that taking a motorcycle loan wouldn’t affect your ability to pay tuition fees at your institution.
3. No minimum income requirement
When you apply for a two-wheeler loan for students, banks or NBFCs wouldn’t require the co-applicant to have a minimum income inflow. This makes it easier to approve the loan. Financial institutions are lenient with two-wheeler loans for students. So, even if the applicant earns a moderate income, they would sanction the loan.
4. Fast loan processing
The loan approval process for students is faster than traditional loans. Banks and financial institutions are not too stringent while verifying income proof. This explains why students can get two-wheeler loans sanctioned typically within three days. Motorcycle loans are secured, which implies that the bike itself serves as collateral.
5. Freedom to purchase
As a student, you might be requiring only an entry-level bike. However, if you have a fascination for a sports bike or a high-end motorcycle, you can easily get it approved. Banks and NBFCs readily sanction student motorcycle loans without any restrictions on the model you choose. Once you graduate and start earning, financing expensive motorcycles won’t be so easy.
How can a two-wheeler loan help in education financing?
The rising cost of education in India has been a matter of concern for students. Your family members must be saving funds to finance your higher education. Prioritizing your transportation needs, would you like to spend this accumulated amount to purchase a new motorcycle? This would be a mistake, even if you have the provision for obtaining a loan for education later on.
When it comes to education financing, you need to be prudent with your choices. A two-wheeler loan comes at the same rate of interest, or even lower interest rates compared to an education loan. So, why not keep your education savings intact and get a two-wheeler loan? Remember, obtaining an education loan later on might prove to be much more challenging. A two-wheeler loan comes relatively easy.
Rather than spending your accumulated funds on purchasing a motorcycle and then going for a loan for education, it’s logical to apply for a bike loan. This way, you can manage your education cost, given that the EMI for a bike loan would be lower than that of your education loan.
How can a two-wheeler loan assist your education?
Unlike an education loan, a two-wheeler loan won’t directly pay your fees. However, it will assist your education in several other ways.
- Think about the ease of navigation to your college or university when you are tight on your schedule
- Commuting to your institution on a motorcycle will free up your time for studying
- It’s easy to travel around the city as you attend different coaching centres throughout the day
- If you are doing a part-time job as a student, you can commute to your workplace on your bike
- Most importantly, taking a two-wheeler loan wouldn’t block your funds for education
Equating education financing with motorcycle loans for students, these financial privileges can simplify students’ lives significantly.
Qualifying for a two-wheeler loan as a student is much easier, thanks to the flexibility in loan tenure and interest rates. If you are planning to get a two-wheeler loan being a student, your parents or relatives can be the guarantor.
Whether you are in college or university, or pursuing some kind of vocational education, you can apply for these loans. Compare the best student motorcycle loans at reputed banks and NBFCs. Once you scrutinize the interest rates, down payment requirements, loan tenure, preclosure charges, and flexibility, proceed with the lender offering the best terms.