Know the benefits of taking a two-wheeler loan from a post office
Article by Drivio | 10th Jun 23
Approaching a post office for a two-wheeler loan can be advantageous for borrowers. Flexible repayments, manageable interest rates, and easy application processes continue to be some of these perks.
While looking for viable financing options for your new motorcycle, it’s easy to overlook a post office. Well, a post office loan for financing your two-wheeler can be equally effective as a bank loan. Besides, it pays to understand the strategic post office loan advantages as you brace up to purchase your new motorcycle.
A post-office loan is a less-known alternative to funding your bike. In addition to traditional postal services, post offices offer affordable loans to cater to diverse requirements. So, if you are planning to purchase a motorcycle or scooter, it pays to explore the loan benefits from a post office. In this article, we have discussed the provision of funding your two-wheeler from a post office. This way, you can make an informed decision and repay your loan with ease.
What is a post office two-wheeler loan?
Just like borrowers obtain two-wheeler loans from banks and NBFCs, they can approach post offices for financing their motorcycles. Therefore, a post office two-wheeler loan is a financial privilege that can help you purchase a scooter or a motorcycle. If you are planning to purchase a new motorcycle, you need not stress yourself financially. Post offices in India offer the necessary funding to borrowers to purchase their desired bikes. Similar to bank loans, you need to repay the amount over a specified tenure.
The terms and conditions of the loan agreement may slightly vary between different post offices. However, borrowers continue to enjoy the underlying benefits consistently.
Benefits of taking a two-wheeler loan from a post office
Obtaining a two-wheeler loan from a post office brings you several significant benefits. Check out these perks in this section.
1.Lower interest rates
When you apply for a two-wheeler loan, you expect the interest rates to be reasonable. Among the key post office loan advantages, borrowers benefit from the low rates of interest. At post offices, you can apply for motorcycle loans at competitive rates of interest. Naturally, this rate often turns out to be lower than some of the private banks.
With lower interest rates, you would be shelling out lower amounts as repayment each month. This way, post offices make the loan more affordable to borrowers. Particularly, if your credit score doesn’t look too good, private lenders can charge interest rates as high as 20% or even more. In these situations, it’s logical to get your loan from a post office.
2.Convenient repayment options
As a borrower, you would like flexibility while repaying your loan to a post office. Based on your repayment capacity and requirements, post offices offer different repayment schemes. So, if you are financially stressed, talk to your local post office to explore different repayment options.
When you take a two-wheeler loan from a post office, you can choose a tenure ranging from 12 months to 60 months. With longer repayment tenure, you can reduce your monthly installments. However, choosing a longer repayment tenure also requires you to pay more interest over time. Depending on your financial condition, you can choose a suitable tenure.
3.Flexible loan amounts
One of the loan benefits of getting your motorcycle financed by a post office is the provision of getting most of the on-road price covered as a part of the loan. Just like banks, post offices evaluate the creditworthiness of borrowers based on their parameters. Generally, these include the income of the borrower, credit score, and repayment capacity.
In case you are financially well poised to repay a sizable amount each month, you can get an expensive motorcycle or a high-end bike financed through the bank.
4.Easy application process
Applying at a post office for a two-wheeler loan is pretty easy. The process is straightforward and involves minimal document requirements. As a result, potential borrowers can get their motorcycle loans sanctioned in a quick time.
On visiting your local post office, collect the application form. Generally, your loan officer would guide you through the process.
5.Fast loan approval
The loan approval process involves document verification. Besides, the loan officer would evaluate your repayment capability and creditworthiness before sanctioning the loan.
Post offices try to enhance the experience of their customers. This explains why you can get your two-wheeler loan quickly approved through these financial institutions. Timely disbursal of your motorcycle loan would enable you to acquire the vehicle in a few days.
Two-wheeler loans from post offices are typically unsecured. This implies that you need not provide any collateral or security when you obtain the loan. This is one of the best post office loan advantages since the process eliminates the requirement of additional paperwork. This also reduces the risk for borrowers since they don’t need to keep additional assets as a security.
Since the loan sanctioning process doesn’t require collateral, individuals without access to any valuable assets can also apply for two-wheeler loans at post offices.
7.Convenience of accessing post offices
Obtaining a two-wheeler loan from a post office presents you with the convenience of its extensive network. Every city or locality has its post office, so you need not travel too far from your place to apply for a loan. Besides, borrowers residing in remote areas find it easy to apply for two-wheeler loans through post offices.
8.Reputable and trustworthy institution
In India, post offices continue to be reputed institutions for their trust and credibility. As a borrower, you should be more confident in the integrity of these institutions. The transparency of operations and the ease of accessing loans through these institutions would significantly enhance your experience.
Obtaining a two-wheeler loan from a post office brings you several compelling benefits. From flexible loan amounts and lower interest rates to quick loan approval and the absence of collateral requirements, you can enjoy several perks.
So, if you are planning to finance your new motorcycle through a two-wheeler loan, reach out to your local post office. Now that you know the loan benefits from these financial institutions, you can compare interest rates with banks and make your decision.