Cost-efficient electric bikes continue to gain popularity among the Indian masses and have proven to be great for daily commute. You might also be gearing up to buy your own electric two-wheeler. Getting a loan to finance this big-ticket purchase is a smart option. Well alongside providing you with the required funds instantly, there are multiple other reasons why you should consider this option. Let us list down a few for you.
High Loan Amount
You can finance up to 100% of your e-bike purchase with the help of an electric bike loan. This however depends on the amount you are eligible to borrow and the offer provided to you by your chosen lender. This allows you to pay for your purchase without having to empty your savings at once. You can pay for the vehicle gradually in small installments, which can lead to minimal impact on your finances.
Tax Benefits
As per the Income Tax Act of 1961, you are entitled to get tax benefits on your EV loans. In 2019, the government of India introduced Section 80 EEB w.e.f. 1st April 2020. With this move, the Centre wished to incentivise the purchase of electric vehicles in India to increase the consumption of the said automobile in the country. Under this, you are exempted from paying tax on your bike loan interest charges for up to ₹1.5 Lakhs. You can benefit from this deduction if you have taken an electric two-wheeler loan between 1st April 2019 and 31st March 2023. If you take a loan after March 2023, you will not be eligible to get these tax benefits
Flexible Repayment Options
Having control over your finances is extremely important. The flexible repayment options available to you with the electric bike loan allow you to budget and manage your finances as per your requirements. You can opt for interest-only payments initially as EMIs and then repay the principal amount in the latter part of the tenure. On the other hand, you choose to make bullet payments or regular EMI payments.
Helps Manage Your Finances
Getting a loan instead of using your savings to finance such a purchase can help you manage your finances better. Rather than paying a lump sum amount, you can pay just a nominal sum as a downpayment for your electric bike and pay for the rest via affordable EMIs. Paying monthly small amounts can help you manage your other monthly expenses like utility bills, rent, etc. Ensure to check your electric bike loan interest rates to estimate your loan costs accurately and plan your monthly budget accordingly.
Fast Approvals
You can expect your electric bike loan application to be approved within a day or two. If you submit all the required documents and meet all the eligibility criteria, you can also easily apply for an electric two-wheeler loan online and get approval within a few hours.
Eligibility across Income Groups
Whether you are an experienced professional or have just started earning, you can easily apply for a two wheeler loan. As these loan amounts usually range from ₹50,000 to ₹80,000, people from various income groups can apply for these lending solutions without difficulty. Bike loan interest rates are usually low, as the loan falls under the secured category. These loans have tenures of 12-48 months, which makes it easier to pay the monthly EMIs.
Improves Credit Score
An electric two-wheeler loan can also be a unique way to boost your credit score. These loans come with a long repayment tenure and affordable interest rates, which helps you to repay them on time. This in turn can help you to build a good credit history. A good credit score will be extremely important for you while applying for other lending options like a personal loan or a home loan.
Competitive Interest Rates
Most financial institutions provide electric two-wheeler loans at very attractive interest rates. The bike loan interest rate on the loan is determined by the chosen lender on the basis of your income, employment type, and the bike you wish to purchase. You may be offered low bike loan interest rates if you are deemed a low-risk borrower by your loan provider. On lender websites, there are two-wheeler loan EMI calculators that you can use to estimate your EMI and choose your preferred loan term.
Provides More Choices
Opting for an electric two-wheeler loan gives customers more freedom, as they have multiple options to choose from. For instance, when self-financing such a purchase, you are generally limited by a predetermined budget and must buy a bike model that fits within a specific price range. You can purchase the bike of your choice and choose a model with greater features with the aid of a bike loan.
Owning an electric two-wheeler is no longer a luxury, but rather a necessity, due to its fuel efficiency and performance. As the demand for these two-wheelers continues to surge, lenders have begun offering loans on more flexible terms that cater to potential buyers. An electric bike loan can help you buy your favorite bike without straining your finances, allowing you to manage your money better. Well, what are you waiting for? Get started right away!
