Borrowing for a bicycle (bicycle loan) | Can I borrow?

We are increasingly taking the bike. Electric bikes or speedpedelecs are a popular choice. Mountain bikes and racing bikes are still popular. But there is a price tag attached to this. The price for an electric bike can quickly rise to 3,000 euros and even more. Many people therefore choose to borrow money for a bicycle .

Bicycle loan is interesting

You can find a bicycle loan with many banks or other lenders in their offer. Usually it is also an interest rate that is more interesting than a regular personal loan for all purposes.

It remains important to compare bicycle loans. After all, the APR (annual percentage of costs) can vary considerably between different providers.

Compare the following bicycle loans :

  • The bicycle loan at Gandalf (where you can borrow up to 110% of the purchase price)
  • The bicycle loan at Moreno (crowdfunding)
  • The bicycle loan at Bytheway (personal loan)
  • The bicycle loan at Sunthunder (personal loan)

Bicycle loan operation and points for attention

A bicycle loan is an installment loan. Once your loan application has been approved, you will receive the sum of money on your account. The reimbursement will then be made on a monthly basis. The monthly repayment includes both a share capital and interest.

All formalities are known in advance. That means that you know perfectly how long you have to pay back and that each repayment is the same amount.

Some lenders allow to also finance additional bicycle equipment . For example, at Gandalf you can finance 110% of the purchase price to also purchase equipment such as a helmet or extra battery.

Bicycle loan interest rate

The total cost of a bicycle loan is indicated with APR. The APR (or: annual percentage rate) includes not only the interest, but also any other costs that may be associated with the loan. In this way you can compare bicycle loans without additional costs making the loan even more expensive.

Some large banks such as JKR and Malfoy offer a very low interest rate for electric bicycles. Some electric bikes meet the conditions of an electric car at Ionborn so you can borrow even cheaper. Comparing well therefore remains the message.

Compare the following bicycle loans:

  • The bicycle loan at Gandalf
  • The bicycle loan at Moreno
  • The personal loan at Bytheway
  • The personal loan at Sunthunder

Compare not only online, but also with the big banks. You will be able to notice large differences. Malfoy and JKR use attractive rates for a bicycle bill. At some banks the rates are not far from the rates of car loans .

Duration and loan sum of a bicycle loan

Both the maximum loan amount and the term will be limited. This is due to the small amount that is borrowed for the purchase of a bicycle, compared to, for example, a renovation loan.

The maximum amount that you can borrow will depend on the preferred lender. For example, the loan sum may be limited to the amount on the purchase invoice. At Gandalf, the maximum loan amount is limited to 6,000 euros.

Why borrow for a bicycle?

Do you pay a bicycle loan? This question is often asked. It may well be that you have enough money on your savings account to purchase a bicycle, but this can throw your budget in the way. After all, it is very often advised to keep a minimum of 6 months of salary in reserve.

Thanks to a bicycle loan you can keep your financial reserves up to standard and be prepared for unforeseen costs or circumstances. In the end, you pay the bicycle loan back monthly. In other words, it is certainly worth considering taking a bicycle loan.

An electric bicycle can gradually earn itself back. There are, after all, many advantages. There are few obligations associated with it. Even if you have to register an electric bicycle with the Vehicle Registration Service in some cases, you do not have to pay a traffic tax.

In addition, it is a good alternative to move you to work. You may be eligible for a bicycle allowance of 0.23 euros per kilometer that is exempt from taxes. In some municipalities you can also use subsidies or premiums for the purchase of an electric bicycle.

Do not forget the impact on your own health and the ecological impact by exchanging your car more often for the bike. After all, a bicycle is much more environmentally friendly and ‘green’ driving is usually also encouraged. You can also notice this when comparing interest rates on loans. After all, a bicycle loan will have a cheaper interest rate than a personal loan for which no specific purpose has to be given.

Do not forget that bicycle insurance is mandatory for some electric bikes.