Two Wheeler Loans

 

Most of the Banks in India provide two wheeler loans which was a big business for both the vehicle company & for banks..




Getting a set of wheels of one’s own requires a big amount of money. Leave alone the highly expensive ones, buying even a used vehicle needs a heavy purse. It is because of this reason there is abundance of two wheeler financiers as well as lending agencies offering two wheeler loans. Private sector banks are ahead of their public sector counterparts in terms of efficiency of application and processing of loans. On the spot loan offers are given by various banks and other flexible schemes to suit the needs and pockets of customers.

The maximum Loan amount offered by Banks for Two Wheeler Loans :

Loans are provided from Rs.3000 to Rs. 160000. And these loans can be paid in (EMI) easy installments. The (EMI) installment period can range anywhere from 6 months to3 years, depending on the finance options chosen by the consumer. In case of new vehicle, bank generally finance up to a maximum of 90% of the cost of the two wheeler vehicle.

In case of old/second hand vehicles, banks finance up to a maximum of 85% of the value of the vehicle. Repayment is done by Equated Monthly Installments or EMI.

The Interest rate charged by Bank on Two Wheelers Loans :

Although Public sector banks are offering lower interest rate than their private counterparts but they are lagging behind due to poor quality of service. Interest rates depend on the two wheeler model, loan tenure. Interest is generally calculated on a monthly reducing balance.

And process Of Two Wheeler Loans Application :

Customers can contact the bank representative and apply for an auto loans. They can also fill online forms. There is no processing fee for new cars in most banks/finance companies. However, some companies do charge a minimal processing fee for used two wheelers.

Important Documents Required for Two Wheeler Loans