The festive season is here, and you would like to indulge in some self-pampering or buy gifts for your loved ones? The latest and amazing bike can be a perfect gift! So, how do you fit this purchase within your budget?
You want a new bike, but your bank refuses to give you a loan. Or maybe you just don’t have a bank account. Maybe you’re a student and you aren’t allowed to have a loan.
And then, one day, someone told me about EMI or Equated Monthly Instalments. You know what EMI is, right? It’s when you buy something expensive on credit and pay for it in small monthly installments spread across several years. So if it’s an electronic item with a warranty of three years, the company will let you buy it in three-yearly installments.
Two wheelers are now available to buy on EMI at many online and offline stores. When you buy two wheeler on EMI, it allows you to pledge a convenient amount monthly/weekly/daily without overwhelming your budget.
How does it work?
Buying 2 wheeler without making significant commitments works in two ways:
One where you buy the product and then pay on EMI
It is what it sounds like, buy bike on EMI. This is simple – when buying two wheeler online, go for the EMI option.You can opt for flexible plans ranging between 3 to 24 months.
One where you join a saving scheme with a store
Think of it as a monthly investment plan. Here you will have to keep depositing a certain fixed amount every month with your preferred autoshop. The programs are generally for a minimum of 12 months.
Benefits of buying Bike on EMI
No big commitment
Who doesn’t want to possess brand new two wheeler without making it a huge spend at one go? Here’s the good news – buying bike with the access of checking two wheeler loan EMI calculator is convenient and does not break your monthly budget.
Flexible EMI periods
Several two wheeler brands and stores offer flexible tenures according to your affordability. The tenures start from 2 months and go up to a year. Some retailers, such as Muthoot Capital, also have daily and weekly options available when applying for bike loan online.
Fixed gold value
As you must know, the branded and luxury bike’s value fluctuates each day. And as an appreciating asset, the value is likely to go up rather than down. In addition, when you buy bike on loan, the value of the day it is purchased gets fixed, thus protecting you from price inflation.
How to avail of the Bike on EMI plans?
To avail of the EMI plans, you need to produce your PAN card, proof of address, and income. If these two criteria are fulfilled, verification will be done, and you will be approved to buy the best bike loan. For those who don’t know how to buy a bike on EMI, we have made a list of 9 steps as follows:
- Calculate the bike price
- Calculate the EMI amount
- Calculate the interest amount for 1 year
- Calculate the total interest to be paid for 10 years
- Calculate the total interest to be paid for 5 years
- Calculate the monthly instalment for 5 year EMIs
- Check whether you can afford it or not by comparing the monthly instalments with your current expenses – that is, how much you can save per month after buying a new bike?
- Compare the prices of different models available in your budget range and decide which one suits your requirements best.
- Go to a bank and apply for a loan without guarantor to buy your dream bike
Nowadays most people prefer to buy goods with easy installment plans, which are mostly available through banks or through the Internet. Banks are most preferred because they are far better at it than the Internet.
The advantage of this system is that you can own a lot of things without spending much money.