Personal Loan vs. Bike loan

Are you planning to buy a bike but wondering which is the best option between personal loans and bike finance to fund the same?

Today, there are varieties of loans available to meet different kinds of needs such as home loans, auto loans, education loans, etc. 

But personal loans are unique as they can be used for a variety of reasons, including purchasing a bike or two-wheeler.

In such a scenario, which is the better option - Personal loans or bike finance? 

Personal Loan vs. Bike Loan - Which One Should You Choose?

Let us understand the features of each of these loans first, in order to find out which one is the better option.

Features of a Personal Loan

A personal loan is an unsecured short term loan that can be availed by an individual from different lenders like banks, NBFCs, or online fintech lenders. 

The eligibility criteria and documentation requirements for availing a personal loan are less stringent compared to other loans such as home loans and education loans.

Personal loans do not require security or collateral making them easy to avail. However, interest rates may be on the higher side due to this factor.

Features of a Bike Loan

A bike loan or a two-wheeler loan, on the other hand, is a secured loan. This loan can be availed only against the security of a two-wheeler. 

The asset (bike/two-wheeler) remains hypothecated with the lender until the loan is repaid in full.

Earlier, tenures of bike loans were the same as personal loans, however, these days extended tenures are becoming more common. 

The loan amount that can be availed is higher as compared to personal loan but the eligibility conditions for a bike loan or bike finance are generally more stringent.

Personal Loan vs. Bike Loan - At a Glance

Based on the features mentioned above, let us compare the two loans -

Which is the Best Option between a Personal Loan and Bike Finance?

Based on the table above, we can see that both loans have their own advantages and disadvantages. While personal loans are easier to avail, the interest rates may be on the higher side as compared to bike loans.

Bike loans come with longer repayment terms but if you miss your repayments, the bike may remain in possession of the lender.

As for the best option between the two - it completely depends on your financial situation. 

For eg. If you require an urgent loan to purchase a bike with minimal documentation, then a personal loan will be a better option. 

But if you require a longer repayment term and are comfortable with providing collateral (the bike in question), then a bike loan may be the right choice for you.

Have an idea of your financial situation and your goals and go for the right type of loan based on that.

How can an Online Personal Loan from Money View Help You Buy a Two-Wheeler?

As you can see from the comparison above, a personal loan is a great option to fund your bike purchase and in many ways, even more advantageous than a bike loan.

And a personal loan from one of the top lenders in the country, Money View, is an even better option. Here’s why :

• Easy to Avail

Availing a personal loan from Money View is a completely online process and you can apply from the comfort of your home/office.

• Instant Disbursal

Bike loans can take some days for disbursal even if all your documents are in order. On the other hand, a personal loan from Money View can be disbursed in a matter of 24 hours from the time of approval.

• No Hypothecation or Proof of Purchase Needed

When you avail of a personal loan to purchase a two-wheeler from Money View, you need not submit any proof of purchase or hypothecate your bike with us. So, the bike/two-wheeler is in your name from Day 1.

• Minimal Documentation

Unlike most other lenders, at Money View, we only require three of your documentations - Identity Proof, Address Proof, and Income Proof.

• Pocket-Friendly Interest Rates

Interest rates for Money View personal loans start at 1.33% per month and will depend on your credit score.

• Available for Low Credit Score Applicants

At Money View, we use a unique credit rating model which is why, as long as your CIBIL score or Experian score is above 650, you can still avail a personal loan from us.