Your son is all grown up and he needs a new bike, or it is your first pay cheque and you have thought of giving yourself your dream bike but the bucks you have with you is not enough. Don’t be upset as the money lending institutions have got your back! Nowadays having a personal vehicle is as essential as oxygen in the air. While personal vehicles can be two-wheelers and four-wheelers according to affordability. The majority of people opt for a two-wheeler aka motorcycle as the car prices are sky-touching.  

But with each dream of having a bike lands up with a question: what should I do to finance my motorcycle? Should I go for a loan motosikal or a personal loan? 

You’ll find your possible answers for your pop-ups of doubt by reading further.

Hire Purchase Financing:

The standard mode of financing for a motorcycle is to purchase it via a motorbike loan owing to its scheme of lease-to-own. Consumers can enjoy the motorbike while paying the installments, although they don’t get the full rights of the motorbike until and unless the full amount has been paid. Whereas the interest rate and loan tenure vary on the type of motorcycle purchased. 

There’s an instance given below to show a common package given under the AEON Credit Motorcycle loan,

Moped motorcycle (<250cc) interest rate can be from 0.83% and the Maximum tenure must be up to 60 months, the margin of finance will be up to 90%.

Superbike(>250cc), its profit rate be from 0.40% and the tenure will be up to 84 months, whereas the margin of finance is up to 90%.

Personal Financing- Can be a better option?

A personal loan can also assist you in having your dream bike. It can be a better option rather than having a motorcycle loan. Just take a glimpse at its advantages.

• You will be given ownership of the motorcycle when it is purchased through cash from the dealer.

• Longer tenure can last up to 120 months.

• You can have lower monthly installments as the loan gets distributed over a longer period of time.

The personal loan is all dependent on the consumer’s own credit history for ex CCRIS & CTOS and the eligibility for the loan.

Which one is better Motorbike loan or a personal loan?

Let’s get insight on this by going through examples of a new 250cc bike and another 650cc superbike using Motorbike financing that is from AEON credit and personal financing which will be from (Co-op Bank Pertama)

Purchasing 250cc Honda:

In Motorbike loan- The monthly profit rate will be 0.83%, and the tenure will be of 60 months. The payable interest will be approx 12,948, and the interest savings will be 3,900, the total you have to pay is 38,947 approx. The monthly installment will be 649.

Purchasing 250cc Honda:

In personal loan- The monthly profit rate will be 5%, and the tenure will be of 60 months. The payable interest will be approx 3,900, and the interest savings will be 9,048, the total you have to pay is 29,899 approx. The monthly installment will be.

If you look carefully the borrower can save RM9,048 by financing the bike through a personal loan. Is not it great?

Another Example:

Purchase of 650cc Honda

In Motorbike loan:

The monthly profit rate will be 0%, and the tenure will be of 84 months. The payable interest will be approx 14,616, and the interestrestvings will be 9,315, the total you have to pay is 58,115 approx. The monthly installment will be

WheWhereasIn Personal Loan:

The monthly profit rate will be 5%, and the tenure will be of 84 months. The payable interest will be approx 9,135, and the interestrestvings will be 5,031, the total you have to pay is 48,800 approx. The monthly installment will be

You will see that a personal loan is much cheaper than a Motorbike loan.

Thus, it is concluded that a personal loan is a better option to get your dream bike in Malaysia. Now, what you are waiting for grab your personal loan and get what you were eagerly waiting for. All you have to do is check your loan eligibility with direct lending. The service they offer is 100 percent free. There is not any charge for processing. You might receive your fund as early as 2 working days.