Personal loan vs Two Wheeler loan: Most of the country’s middle class buys 2-wheelers before purchasing their cars. The price of bike or scooty has reached or close to 1 lakh rupees nowadays. In such a situation, many people are unable to buy the bike by paying full cash.
But you can easily buy your first bike or scooty through a personal loan or 2-wheeler loan. Now the question arises that what should you do if you want to buy a new bike or scooty- should take a personal loan or take a 2-wheeler loan? Let’s know about this.
What is a personal loan?
Personal loan is a loan that you can take from the bank without mortgaging anything. People mostly take this loan in emergency position. However, you can use personal loan for any reason. If you want, you can pay the bill in the hospital, get your house repaired or also buy a bike.
However, how much personal loan you will get depends on your income and credit history. Personal loan interest rate is higher than other loans. In general, the interest rate of personal loan ranges from 10.50% to 24% annually, depending on your credit score.
What is a 2-wheeler loan?
The 2-wheeler loan is a loan that helps you buy motorcycles or scooters. You can repay your loan in a certain EMI in a certain time period.
The interest rate of 2-wheeler loans is lower than a personal loan. Banks or other financial institutions usually provide loans from 80% to 90% of the bike price, the remaining amount has to be given to the customers themselves.
Which is right for you?
Which loan you should take depends on three things:
First- What is your financial situation?
If you want to take a loan at a cheap interest rate, then a 2-wheeler loan can be a good option for you, but loan companies only give 80 or 90 percent loan of the price of the bike. But apart from buying a bike, you will have to pay more expenses for insurance, tax etc., so if you want more money then you should take a personal loan.
Second- Reporting Term
The rate of 2-wheeler loans is short as its EMI amount is high, which reduces the total repair period.
At the same time, the amount of EMI is low in the personal loan and the repair time is high, but the interest increases over time.
Third-credit score
Personal loans with low interest rates require a strong credit score. At the same time, this is not the case in 2-wheeler loans. Since there is a 2-wheeler loan collator loan, this loan is easily available.
Which loan you should take depends on your priority.
Disclaimer: Taking a loan comes with its risks. Therefore, take proper precautions.