The site is helpful, but there is no information related to two wheeler loans.
Good to know that you find the website helpful. Is there anything specific you would want to know about two wheeler loans? If so, we are happy to clear your doubts.
For a 2 wheeler loan, you can get a maximum of up to 85% of the on road price of vehicle. The interest rate for a large majority of 2 wheeler loans is calculated on a daily reducing basis. Before you request for a 2 wheeler loan, it is important to know that you will need to pay a margin money of around 15% of the on the road price including vehicle registration charges, insurance, one-time road tax. Before taking two wheeler loans, it is advised to compare the rates offered by different banks and NBFCs. NBFCs usually charge higher rates than banks. You could also check for other charges like processing fees, pre-closure charges etc.
Usually there will be processing fees which come around 0.5% to 1.5% of the loan amount. If you are planning to pre-close the loan at any time, a pre-closure fee which is around 2% to 5% of the principal outstanding at that time is applicable.
I am planning to buy a bike preferably through a two wheeler loan. What is the maximum loan amount I can get?
Bike loans are easily available today, as it is offered by most banks and NBFCs. You have not mentioned whether you are salaried or self employed as different banks have fixed different margin money requirements for both individuals.
Most banks and Non Banking Financial Companies offer loans for two wheelers for up to 85% of the on road price of the vehicle for salaried individuals. Various banks have fixed a maximum upper limit for the two wheeler loans they offer. The vehicle purchased with the amount of loan is hypothecated to the Bank. Loan tenure also varies from bank to bank. However, on an average, it will be a maximum of 3 years.
Before zeroing down to an option, it is advised to check and compare the interest rates and associated charges involved with at least 3-4 leading banks of your choice. Most dealers offer in-house finance arrangements from the bank which they have a tie-up. It is good as it reduces your leg work and it makes possible that you can straight away walk into a showroom, and make the booking. But do check if the rates they are offering are the best.
Here are the major features that you should consider when you are looking for a Two-Wheeler Loan:
• Margin of finance: On an average, most Two-Wheeler Loans will pay for up to 90% margin of finance. This means that you can make a loan down payment of only 10%, which is nominal considering the prices of an average two-wheeler.
• Loan partnerships with dealers: Auto-financiers often have special deals with motorcycle and scooter dealerships to provide convenient loans, which often prove to be cheaper than the ones, if opted for separately. Also, as a buyer, you can negotiate freebies and added benefits if the bike or scooter dealership offers you the same.
• Relieving financial burden: The most beneficial feature is the fact that it helps spread the costs into a yearly payments based on your requirements. Some companies also take post-dated cheques for loan repayments, which is also convenient for many.
• Annual income leverage: Banks often offer these loans to people who are earning as low as INR 50,000 in a year. This means that you do not even have to be in the taxable bracket to get these loans and at the same time you can still afford it. Since the loan repayment tenure can go up to 4 years, your monthly installments will not affect your income as such as long as you have that included in your monthly budget.
• No prepayment or early foreclosure charges: Most banks do not charge any prepayment charges if you are able to pay up your loan amount before your tenure ends. This is often suitable for some because it helps to clear off your debts faster if you can.
• Other costs covered: These loans often cover the costs of accessories, insurance, and even registration. This means that you are getting finance for not only the vehicle but the essential expenses on the same. It is a good idea to add security accessories and make the most of this opportunity since the premiums are lower if you have extra security and safety features added.
• Flexibility in loan tenure: Loans provide borrowers with ample time to pay back with tenures that range between 12 to 48 months. A longer tenure helps to manage the borrower’s monthly finances better and at the same time avoid defaulting on payments.
• Credit score: As a first-time vehicle buyer or while opting for a loan for the first time, motorcycle loans are great for your credit score.
Looking for a Two-Wheeler Loan? Click here.