Affordable, easy to maintain, and the perfect getaway on a heavily packed road, a bike or a scooter is convenient in more than one way. If you are planning to purchase a bike, taking a bike loan is probably the first thing that comes to mind. But if you do not wish to apply for a bike loan or your bank has refused you one, there is another easy way to take you closer to your dream bike.
You’ll be happy to know that bikes can now be purchased on EMI, at both online and offline stores. You just need to pledge a well-thought-of amount that you can pay on a regular basis, without having to overwhelm your budget.
Buying a Bike on EMI – How Does it Work?
In simple words, when you buy a bike or any such product on EMI, you first buy and then pay. On an online store, just like you shop for other items, you select the bike you wish to purchase, and at the checkout, convert the payment into EMIs. In a way, taking a bike loan and buying a bike on EMI are quite similar. In both cases, you pay a monthly instalment for the purchase that has been made.
How to Buy a Bike on EMI?
Let us now understand in detail, how a bike can be bought on EMIs. Follow the steps given below:
- Check your Eligibility
This is the first step that you need to follow. In case you have already decided which bike you wish to buy, make sure you have the budget as well as the eligibility criteria to buy the bike.
- Calculate the EMI
Calculating the EMI will give you a fair idea of the amount you would have to spare every month to buy the bike. You can easily make use of the bike loan EMI calculator. The bike loan EMI calculator is a free online tool that helps you see how the EMI is being calculated. You can choose a repayment tenure that best suits you. You can increase the instalment amount or the repayment tenure to reach the most-suitable EMI.
Tip: When using the bike loan EMI calculator, make sure you compare the different bike models and variants available. This will help you in getting the deal well within your budget.
- Approach the Lender
This step can be followed both online and offline. Check the website of reliable lenders and understand the eligibility for the bike loan. Certain bike models/ variants are city-specific and may not be available in your area.
Tip: Before finalising a lender, go through their bike loan terms and conditions as mentioned on the website. You can also speak to customer care for better clarity.
- Online Aggregators
An online marketplace such as Bajaj MARKETS allows you practical and smart financing options. You simply need to enter your details and upload a few basic documents such as PAN, address proof, income proof etc. Once the verification process is complete, you will be able to get the best deal.
Buying a bike on EMI comes with several benefits. Without having to pay a huge amount in one go, you can easily break the payment into smaller and more affordable instalments. Most lenders offer a flexible repayment tenure that can be from 3 months to 2 years. Another benefit of a bike loan or EMI is that even if the bike’s price increases in the future, as it is an appreciating asset, the price you have to pay will not increase.
Author:- Prabhas Kapoor is post-graduate in finance management. Love to share information regarding finance & Investment. Passionate about writing, reading and new innovations.