How to use a two-wheeler loan for financial emergencies?
Article by Drivio | 14th Apr 23
Get 100% financing for your two-wheeler loan to free up your emergency funds. With easy loans available from banks and NBFCs, you need not channel your savings to manage the down payment.
A two-wheeler loan is much more than the kind of financial privilege than it appears to be. Do you know that these loans can come to your rescue in case you are experiencing a financial crunch? No, you can’t use a two-wheeler loan directly to fund other priorities. Still, a two-wheeler loan for emergencies can significantly ease up your finances.
In most cities and suburban areas, two-wheelers continue to be one of the most cost-effective modes of transportation. Do you know that reputed banks and NBFCs are offering these loans at low interest rates? What’s more important is, you need not disturb your savings to finance your new motorcycle. With zero down payment two-wheeler loans available, you don’t have to touch your savings. This way, you can channel the savings that you had accumulated for making a down payment for your motorcycle loan for other priorities.
Often, people look out for a loan for unexpected expenses. Given that a two-wheeler loan is unsecured, you can easily qualify for one.
What is a two-wheeler loan?
A two-wheeler loan is a financial privilege that banks and NBFCs credit to borrowers. Even if you have a low credit score, you can qualify for these loans. The rate of interest on a two-wheeler loan depends on your financial profile and credit score. Besides, your ongoing liabilities, repayment habits, the type of bike you choose, and other factors determine the rate of interest. Most importantly, you can choose a flexible loan tenure ranging between two to five years. Once the loan gets disbursed, you need to pay a specific EMI each month to the lender.
How can a two-wheeler loan help you manage financial emergencies?
Have you tried saving adequate funds to purchase a new motorcycle? Amidst financial pressure to manage your household expenses, kids’ education, energy bills, and insurance, saving enough money to purchase a new motorcycle turns out to be financially distressing.
What’s more, channelling your accumulated savings to purchase your new two-wheeler would leave your emergency fund empty. What if a medical emergency arises and you have no money at your disposal? Rather than approaching a bank or NBFC to obtain a loan for emergencies, it’s easier to qualify for a two-wheeler loan with zero down payment. This implies that you can have your savings intact even when you purchase a new bike.
With a two-wheeler loan, you get ready finance to purchase the bike. With low interest rates, manageable EMIs, and long repayment tenures, you can ease yourself financially.
Can you purchase a two-wheeler if you don’t have any cash?
Of course, you can purchase a two-wheeler even if you don’t have any cash at your disposal immediately. You simply need to be confident of your repayment abilities and have a decent creditworthiness.
Financial emergencies strike without any warning. Think of unplanned expenses like high treatment costs, medical bills, or home repairs after a disaster. In most of these situations, people reach out to banks and NBFCs to apply for a loan for unexpected expenses. A personal loan, for instance, can come to your rescue.
Now, there might be situations where you had been saving money to purchase your motorcycle. Considering the versatility of these vehicles, you can use your bike for both personal and commercial purposes. While it’s easy to commute across your city on a two-wheeler, you can also use these bikes to deliver food or other merchandise.
How about supplementing your income by chipping in a few hours every day as a delivery agent? With online food delivery and eCommerce business booming in every city, it’s logical to use a two-wheeler loan and acquire a bike. This way, you can gradually walk your way out of financially crippling situations.
Now that you can fund 100% of the value of your motorcycle through zero down payment loans, you need not use up your hard-earned savings. Rather, you can put aside your savings as an emergency fund, while counting on the bike loan to finance it.
Choosing the right two-wheeler loan
Now that you know how a two-wheeler loan can help you tackle financial emergencies, let’s understand how you should choose one of these products.
1. Low interest rate
Reputed banks and NBFCs offer two-wheeler loans at reasonable interest rates. Depending on your credit score, your income, the model you are purchasing, and the loan tenure, interest rates vary. Explore the best two-wheeler loans at a low interest rate and narrow down your options. This way, you won’t be forking out large EMIs each month. Rather than paying 20% or even more for your motorcycle loan, it’s logical to approach a lender ready to lend you at 8% or 10%.
2. Flexible loan tenure
People experiencing financial emergencies wouldn’t be comfortable shelling out high EMIs each month. Rather, they would try to get a loan for a relatively long period and divide their liabilities into smaller parts. So, look out for a bank of NBFC ready to lend you for a longer tenure. Usually, you can take up to five years to repay the loan.
3. Instant disbursal
Often, financial emergencies turn out to be pressing enough. Think of a situation where you need an immediate source of income and are willing to work as a delivery agent. Would you like waiting for weeks to get your two-wheeler loan processed? With most lenders preferring the digital disbursement processes, getting the loan sanctioned and transferred to your account takes a few hours. It’s wise to reach out to a bank or NBFC ready to disburse loans digitally.
Whether you are going through a financial turmoil or don’t want to use your emergency funds to purchase a two-wheeler, it’s logical to purchase the motorcycle through a loan. With 100% financing available, you can free up your funds and divert them to manage other priorities. Explore the best two-wheeler loans provided by banks and NBFCs and manage your finances intelligibly.