For most Indians, a two-wheeler is the most efficient way to travel or commute. You can run your daily errands or reach office on time conveniently and economically by zooming past the maddening traffic on a two-wheeler.
Unfortunately, not everyone can afford a bike or a scooter. But, most banks and financial institutions have made purchasing a two-wheeler easier for people who cannot afford to pay for it upfront.
Two financial products are popular in the two-wheeler finance market – two-wheeler loans and personal loans. The major difference is that, a two-wheeler loan is a secured loan and a personal loan is an unsecured loan.
Before you decide which loan works best for you, you should consider all aspects of your purchasing decision – financial and otherwise. Consider your…
- Current financial situation.
- Length of the loan.
- Down payment amount.
- Interest rates.
- Repayment schedule.
The reasons below talk about the benefits of MoneyTap Personal Loan 2.0 over traditional two-wheeler loan.
6 Reasons Why You Should Use MoneyTap Personal Loan 2.0 to Buy a Two-Wheeler
- You don’t need to have a credit history
Most banks before approving a two-wheeler loan take a good look at your credit history. In case, if you haven’t taken any loan or a credit card, banks usually reject your loan application for lack of credit history.
If you are new to credit (NTC), MoneyTap can process your personal loan for two-wheeler application. While evaluating your credentials, MoneyTap takes a holistic approach and factors in other aspects like employment, income, etc. during the loan approval process.
- You don’t need to wait for days to get your loan approved
MoneyTap’s personal loan for a two-wheeler can be applied online by downloading the app. The approval is instant. The quick online loan application process saves time and unnecessary visits to the bank.
- You don’t need to make a down payment
Traditional two-wheeler loans do not finance 100% of the cost of the vehicle. The loan can get approved for up to 85% and the rest of the cost has to be paid in the form of a down payment. That means you have to spend money from your pocket to make the payment.
With a personal loan from MoneyTap, the purchase of your dream bike can be 100% covered.
- You don’t need to pay high interest rate
The interest rate for a two-wheeler loan varies from lender to lender. It typically falls in the range of 12% to 30% and it depends on the bank, the bike, your salary and your credit history.
With a personal loan for a two-wheeler from MoneyTap, interest rates start at 1.08% per month, which is comparatively lower than most two-wheeler loans.
- You don’t need to follow a rigid repayment plan
MoneyTap’s personal loan for a two-wheeler gives you the flexibility to choose the tenure of the loan according to your repayment capacity.
The loan tenure is usually shorter than that of a two-wheeler loan. You can even choose to prepay the total loan amount at zero foreclosure charges whenever your finances allow it.
All these flexibilities offered by MoneyTap may not be not allowed in a traditional two-wheeler loan.
- You don’t need to provide a guarantor or collateral
Since two-wheeler loan is a secured loan, the approval doesn’t come through easily as their eligibility criteria can be complicated. You have to give a guarantor or provide a collateral against the loan.
MoneyTap’s personal loan for two-wheeler is an unsecured loan. Therefore, you don’t need to provide any guarantor or collateral. This makes the eligibility criteria simpler and hassle-free.
All these reasons make MoneyTap’s personal loan for two-wheeler a preferred choice for two-wheeler finance. Apply for an instant personal loan for two-wheeler with MoneyTap and get your dream bike home. Apply now!