How to Buy a Bike On EMI?

Posted on: Dec 11, 2023 | | Written by:

How to Buy a Bike On EMI?

Publication date: December 11, 2023. EST READ TIME: 3 MIN

Investing in a bike is not just a purchase, it is a significant step that comes with an essential add-on - bike insurance. Bike insurance provides a safety net and comes in two main forms - third party bike insurance and comprehensive bike insurance. While the first safeguards against the liability from damages caused to a third party, the latter provides all-around protection for your bike.

Now, coming to the big question - how to buy a bike on EMI? In this guide, we'll explain how to seamlessly navigate this process, from choosing the right bike to buying it on EMI, while ensuring it is adequately insured. Whether it is the first bike you're purchasing or you're upgrading to a better model, this guide is designed to facilitate your buying experience.

How to buy a bike on EMI?

Purchasing a bike is an important decision, often impacted by multiple factors such as price, brand, model, etc. In India, you have the flexibility to buy a bike on EMI, easing the financial burden. However,, ensuring that the bike is adequately insured is crucial for legal compliance and financial security. Here is a step-by-step guide on how to buy a bike on EMI and obtain comprehensive bike insurance in India.

Step 1: Select your bike

Choose your preferred bike based on its features, price, and maintenance cost. Don't forget to research the average mileage, resale value, and customer reviews before finalising.

Step 2: Opt for a bike loan

If you cannot afford to pay the entire amount upfront, choose to buy the bike on EMI. Numerous financial institutions offer bike loans at competitive interest rates. You can apply for the loan online or at the institution’s branch. They would require basic documentation, like identity proof, address proof, income proof, etc.

Step 3: EMI calculation

Before you finalise the loan, use an EMI calculator to understand the monthly amount you'll have to pay. The EMI amount will depend on the principal amount, the rate of interest, and the loan tenure.

Step 4: Complete the formalities

Upon approval of your loan, complete all necessary paperwork. Remember to read all terms and conditions carefully to avoid any issues later.

Step 5: Choose a bike insurance

Next comes choosing bike insurance . In India, it is mandatory to at least have third party bike insurance for any two-wheeler plying on roads. This type of insurance provides cover for third party liabilities such as injury, death, and property damage.

Step 6: Opt for comprehensive insurance

While third-party insurance covers damages to others, comprehensive bike insurance offers extensive protection. Apart from third party liabilities, it also covers damages to your own bike caused due to accidents, natural calamities, theft, etc.

Step 7: Customise your coverage

You can further augment the protection by adding suitable riders to your policy like zero depreciation cover, engine protection cover, etc.

Step 8: Purchase insurance

Purchase the bike insurance from the insurer's website or through an agent. Again, read the policy document carefully before making the purchase.

Step 9: Regular EMI payments

After buying the bike on EMI, ensure you pay the EMIs on time to avoid any penalty or a lower credit score.

Buying a bike on EMI in India is quite easy with several financial institutions ready to lend you a loan. Alongside, comprehensive bike insurance offers financial protection to the bike and the owner. Hence, before purchasing a bike, take into account the total cost including EMIs and insurance premiums, and choose wisely based on your financial capacity.

Advantages of buying a bike loan on EMI

Purchasing a bike is a significant investment that most individuals do not make lightly. Thanks to a multitude of financing options, including the option to purchase a bike on EMI, owning a two-wheeler has become more convenient and feasible.

1. One major advantage of buying a bike on EMI (equated monthly instalments) is the ease of financial planning. EMIs are predetermined payments made over a fixed tenure, which allows buyers to plan their finances in advance. This is particularly beneficial for salaried individuals or those with a stable income, who can allocate a certain portion of their monthly income towards their EMI.

2. Bike loans often include options for comprehensive bike insurance or third party bike insurance, which are critical for the protection of both your investment and yourself. A comprehensive bike insurance policy provides wide coverage that includes personal accidental coverage for the rider, damage to the vehicle, and third-party liabilities. This not only helps to protect you financially in case of accidents but also is mandatory by Indian law.

3. Third party bike insurance, as the name suggests, protects you against any financial liability caused by damage to a third party property or person caused by your vehicle. While this form of insurance does not cover damages to your own vehicle, it is a cost-effective way of adhering to the legal requirements and ensuring some level of protection.

4. By choosing a bike loan on EMI, you have the ability to own a bike even if you can’t pay the full amount upfront. With various banks and financial institutions providing bike loans at competitive interest rates, you have the opportunity to compare and select the most suitable plan. Additionally, most lenders have a straightforward and simple process for how to buy a bike on EMI, which often just involves filling out an online application and providing the necessary documentation.

5. Furthermore, opting for a bike on EMI might help in building a healthy credit history if repayments are made regularly and timely. This will enhance your credit score, which would be beneficial in case you want to apply for other loans or credit cards in the future.

6. The availability of different payment tenures also adds to the advantages of buying a bike on EMI. Depending on the borrower's financial situation, they can choose a shorter or longer repayment period.

Buying a bike on EMI in India can prove to be an advantageous move. With a planned financial schedule, coverage through bike insurance, flexibility in repayment tenure, and ease of acquisition, it certainly is a beneficial path towards bike ownership. This will ensure peace of mind while you enjoy your ride on your new bike.

Conclusion

Buying a bike on EMI in India involves understanding insurance types. Acquiring bike insurance ensures coverage against mishaps. Opt for third party bike insurance for liabilities or comprehensive bike insurance for broader protection. Understanding these nuances of how to buy a bike on EMI makes the purchase easier and financially manageable.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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