1. What are Bicycle Loans?
A decent bike in Australia can easily end up costing you well over $1,000, making it unaffordable for many people who are living paycheck to paycheck. Financing your next bicycle purchase through a bicycle loan is a sensible decision, and there are a few loan options for you to consider.
2. Types of Bicycle Loans?
You can either apply for financing in-store when buying your chosen bicycle or purchase one after obtaining a personal loan from a lender. However, each type of lending option comes with its own terms and conditions.
For example, buy-now-pay-later schemes might offer the cheapest financing option, provided your chosen bicycle qualifies for such a mode of financing, and a personal loan might provide loan amounts of up to $10,000 with a longer repayment period that is perhaps more suitable for you.
Although subscribing to a buy-now-pay-later scheme is an easy and fast way to finance your bicycle purchase, very few vendors might offer it to you. Hence, signing up for a personal bicycle loan is your best bet.
3. How it Works
A bicycle loan works like any regular personal loan, requiring you to file an application with all necessary documentation. Although some lenders might be willing to offer you a secured personal loan by keeping your new bicycle as collateral against the loan amount, most lenders should offer a personal loan up to $10,000 without requiring any collateral, provided you have a good credit history and can prove affordability for the loan amount.
4. Eligibility Criteria
To be eligible for a personal bicycle loan, you must:
- Be at least 18 years old
- Be a legal permanent resident or citizen of Australia
- Have a good credit history
- Be employed
- Have a reasonable salary that proves your affordability for the loan amount
5. Application Process
You can apply for a personal bicycle loan with almost any personal loan provider in Australia. While most lenders have an online application process, some lenders also allow you to apply by visiting their branch.
To apply, simply fill out the application form and submit any documentation required by the lender, such as some ID document, bank statements, proof of residence, salary slip, and any other document that the lender needs to make a complete assessment of your financial position.
Once all documents have been submitted, the lender will verify the information and should get back to you with a loan decision between a few hours to two business days.
Can I buy any type of bicycle with a bicycle loan?
Yes, there is no limitation on the type of bike you may acquire through a personal loan sought for the purchase of a bicycle unless the loan is sought through a buy-now-pay-layer scheme, in which case only specific bicycles may be bought with the borrowed funds.
Can I use the funds from a bicycle loan for other purposes?
It depends on the loan’s terms and conditions, although most unsecured personal loans are not given for any specific purpose and may be used as required.
How much can I borrow under a bicycle loan?
Since these are personal loans, you may borrow an amount as high as $50,000 or more, depending upon your affordability.