In India, two-wheelers are considered a lifeline. Some of the key reasons for the importance of two-wheelers in India is that they are low-cost, many rural areas are accessible through two-wheelers, they are fuel-efficient and they make it easy for people to go through traffic. Due to these benefits, two-wheelers are found so abundantly found in India. However, it is possible that many individuals might not have the entire amount at hand while purchasing two-wheeler, which is why banks provide two-wheeler loans.
Two-wheeler loans make two-wheeler accessible to everyone by providing the entire amount of the two-wheelers at once in exchange for interest. All major banks in India provide two-wheeler loans and register the two-wheeler as collateral. Another way to purchase two-wheelers is to take a personal loan and purchase a two-wheeler from the same amount. However, the interest rate on personal loans is almost the same as the interest on personal loans, which provides the buyer a choice to follow any of these two routes.
An additional benefit provided by bike loan offering is the option of paying EMIs. Many banks provide a choice to consumers purchasing two-wheelers to buy the scooter on EMI, which enables people to purchase two-wheelers and pay off the amount in multiple instalments.
Tax Benefit of Two-wheelers
Many loans offer tax benefits on either principal payment or premium payment, which helps easing the burden on people regarding loan payment. While two-wheeler loans are an approved loan instrument, there are no tax benefits for availing a two-wheeler loan in India, and same goes for the option of availing personal loans for the purchase of two-wheelers. However, the only instance in which you can secure tax benefits for purchasing two-wheelers is if you are buying it for business purposes as an asset. In that case, you can avail tax benefits under section 80C of Income Tax Act, 1961.
In any case, two-wheeler loans make it very easy to purchase two-wheelers for people, which is why they have been prominently used in India for the purchase of bikes, scooters, as well as other types of two-wheelers. Banks also provide loan and EMI options through car loans.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs