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Old 28th December 2011, 11:04   #1
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Default Bike Loans: Deals and Doubts

Found that not all banks gives bike loans ( for example Axis Bank). I was talking to a TVS dealer (Logtech Motors) here at Trivandrum since I am thinking of getting a bike asap.


Bike - Apache RTR 180 ABS : 87,000 OTR (77,551 Ex-showroom)

Loan- TVS Credit ( dealer has a rep there)

Loan details

  • Initial payment : 45,056
  • EMI 1954 x 23 months
  • but have to take insurance from them for the second year too
Is this a good deal?
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Old 28th December 2011, 12:01   #2
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Default Re: Bike Loans: Deals and Doubts

JK, there seems to be something wrong in loan amounts

If you add the DP + EMI x 23 = 89K which is just 2K over the actual OTR price of the bike. How can interest component be so small?
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Old 28th December 2011, 12:05   #3
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Default Re: Bike Loans: Deals and Doubts

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Originally Posted by mobike008 View Post
JK, there seems to be something wrong in loan amounts

If you add the DP + EMI x 23 = 89K which is just 2K over the actual OTR price of the bike. How can interest component be so small?
Damn! I didnt do my job! Thanks to forum! I think the only 'issue' if there is that I have to get TVS insurance from them for second year too.

So sweet deal right?

Hail TVS!
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Old 28th December 2011, 12:22   #4
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Default Re: Bike Loans: Deals and Doubts

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Originally Posted by jkdas View Post
I think the only 'issue' if there is that I have to get TVS insurance from them for second year too.
How will this work? I mean, will the policy document that you get with your bike have a 2 year validity, or will you need to renew it after the end of 1 year? If it's the latter, then you'll be free to renew with whomever you choose to; don't think they'll have any mechanism to keep tabs on whether you've really renewed with them or not.

Cheers,
Vikram
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Old 29th December 2011, 13:08   #5
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Default Re: Bike Loans: Deals and Doubts

Thats a sweet deal JK. Its almost like interest free loan

Quote:
Originally Posted by comfortablynumb View Post
don't think they'll have any mechanism to keep tabs on whether you've really renewed with them or not.
Every bank has a system that pops up outlining the due date of a customer. Now the only problem is these guys wake up too late for renewals and usually call a week or so later than they should have.

I assume the loan will have that details in the clause and if you choose to move to a different insurer in 2nd year. They will recover a certain amount from you via...the signed checks they take while disbursement.
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Old 29th December 2011, 13:27   #6
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Default Re: Bike Loans: Deals and Doubts

Quote:
Originally Posted by comfortablynumb View Post
How will this work? I mean, will the policy document that you get with your bike have a 2 year validity, or will you need to renew it after the end of 1 year? If it's the latter, then you'll be free to renew with whomever you choose to; don't think they'll have any mechanism to keep tabs on whether you've really renewed with them or not.

Cheers,
Vikram
They might have some tracking mechanism I guess.

Quote:
Originally Posted by mobike008 View Post
Thats a sweet deal JK. Its almost like interest free loan



Every bank has a system that pops up outlining the due date of a customer. Now the only problem is these guys wake up too late for renewals and usually call a week or so later than they should have.

I assume the loan will have that details in the clause and if you choose to move to a different insurer in 2nd year. They will recover a certain amount from you via...the signed checks they take while disbursement.
It was a mistake from the lady who gave quote. So here goes the new quotes and details.

Bike - Apache RTR 180 :77,551 OTR

Loan- TVS Credit ( dealer has a rep there, they also have HDFC guy there)

Loan details
  • Initial payment : 45,056
  • EMI 1954 x 23 months
  • but have to take insurance from them for the second year too
Bike - Apache RTR 180 ABS :87802 OTR


Loan details

  • Initial payment : 45,420
  • EMI 2527 x 23 months
  • but have to take insurance from them for the second year too
  • You pay an extra of 15,730 Rs for this deal
Bike - Apache RTR 180 ABS :87802 OTR


Loan details
  • Initial payment : 45,237
  • EMI 3299 x 17 months
  • but have to take insurance from them for the second year too
  • You pay an extra of 13518 Rs for this deal
Preclosure is possible after 6 months and one will have to pay 3% extra of what is remaining.
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Old 29th December 2011, 13:57   #7
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Default Re: Bike Loans: Deals and Doubts

Hi JK,

HDFC bank also giving Bike loan.
Just bought a Yamaha FZ-16 with HDFC loan.
Got approval with in 2 days. Yamaha got the money next day.

Bike is ready at showroom, I will take it on Jan 2nd 2012.

Bike is Yamaha FZ-16 :- 75259 (OTR)
DP :- 25,000
EMI :- 2647 x 24
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Old 29th December 2011, 16:59   #8
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Default Re: Bike Loans: Deals and Doubts

Quote:
You pay an extra of 13518 Rs for this deal
That is 39% reducing rate interest OMG !!
or 22.5 % flat rate interest .
Are you sure you want to go for this deal. Personal loan would be better I think or a gold loan if possible.

Last edited by bullboy : 29th December 2011 at 17:21.
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Old 29th December 2011, 18:28   #9
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Default Re: Bike Loans: Deals and Doubts

Why not try Over Draft on FD ? I have taken one for a bike i am yet to buy.
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Old 29th December 2011, 20:09   #10
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Default Re: Bike Loans: Deals and Doubts

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Originally Posted by shubhamAT View Post
Why not try Over Draft on FD ? I have taken one for a bike i am yet to buy.
Shortly I may be in this situation of buying a bike. How does this work?
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Old 30th December 2011, 04:26   #11
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Default Re: Bike Loans: Deals and Doubts

My cousin bro has booked a Classic 500 -- it's 10 months waiting period. He spoke to the HDFC guys, they claim that loan will lapse if not used in a month. so it should be take a month before the bike arrives. He claims it will be approved within 2 days!!! RE guys are saying that they will inform about the arrival of bike before a week. Are loans approved within two days??? And what is the exact procedure after a loan gets approved -- ie do you get a cheque or does the dealer get the money??? Both he and I are clueless... help us out guys
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Old 30th December 2011, 09:34   #12
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Default Re: Bike Loans: Deals and Doubts

Quote:
Are loans approved within two days???
Or Max by a week if there are delays in document submission at first time.
When we took our car loan , the delear informed as a week before delivery (there were some hassles though) and we applied for a loan.
It was appproved in 4-5 days by sbi.
The delear submitted the invoice and documents to the bank and took the cheque.
But some banks might give cheque in owners name who will have to give the cash/cheque to delear.

If you have all the documents with you then there wont be any hassle in approving the loan.

Edit :Also you need to pay EMI only from the next month of delivery if it is not advance EMI.

Last edited by bullboy : 30th December 2011 at 09:36.
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Old 30th December 2011, 10:05   #13
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Default Re: Bike Loans: Deals and Doubts

Quote:
Originally Posted by bullboy View Post
Or Max by a week if there are delays in document submission at first time.
When we took our car loan , the dealer informed as a week before delivery (there were some hassles though) and we applied for a loan.
It was approved in 4-5 days by SBI.
The dealer submitted the invoice and documents to the bank and took the cheque.
But some banks might give cheque in owners name who will have to give the cash/cheque to delear.

If you have all the documents with you then there wont be any hassle in approving the loan.

Edit :Also you need to pay EMI only from the next month of delivery if it is not advance EMI.
Mostly DD in the name of the dealer I guess.

Loans get processed in 2 -4 days depending on the bank. You might also need to give few cheques once the loan is approved.
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Old 30th December 2011, 10:39   #14
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Default Re: Bike Loans: Deals and Doubts

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Originally Posted by Shubz View Post
Shortly I may be in this situation of buying a bike. How does this work?
For overdraft you have to have a FD with the bank for atleast 6months to an year (may vary from bank to bank). Usually you will get an OD of 75-80% of the deposit amount. Once you avail OD, the "available" balance in your savings account increases by the OD amount. You can actually go into a negative balance too. Where the -ve value indicates the amount over drawn. Interest is calculated at +1.5-2% over the FD rate for the amount that is -ve. The advantage with OD is that you can pay the amount as and when you have funds. Say for one month you pay only 1000 and the next month you can pay 5000. This way you can divert surplus funds to close the loan sooner. With a vehicle loan your only option will be to pre-close it. Also from Day 1 the vehicle will be in your Name.

To apply for OD you will have to visit the branch (for SBI i know for sure). In case of HDFC you can do it online. To close the OD in HDFC you still have to visit the branch. Again, these procedures may vary for different banks.
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