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What is Two Wheeler Loans ? |
Leading banks in the public and private sector are providing two wheeler loans, right form mopeds to motorbikes. These loans are available at attractive rates and best prices to attract new customers. Quite a few banks are offering online loan application for the ease of prospective clients. 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.
Maximum Loan offered by Banks for Two Wheeler Loans
Loans are provided by banks from as low as Rs. 5000 to Rs. 150000. These loans can be paid in easy installments. The installment period can range anywhere from six months to three years, depending on the finance option chosen by the customer. In case of new vehicles, banks generally finance up to a maximum of 90% of the cost of the 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.
Interest Charged by Bank on Two Wheeler 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.
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.
Documents Required for Two Wheeler Loans
1. Application Form
2. Photographs
3. Proof of income of last two years
4. Proof of Residence
5. In case of public/Private companies, a certifies copy of MOA and AOA
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