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Old 6th July 2013, 13:57   #31
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Default Re: Two Wheeler Loans

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Originally Posted by sandeepmohan View Post
You are right. Going by their website, Central Bank of India limit on two wheeler loan is 1 lac. I did not approach them as I do not have any documents at the moment that says I hold an account with them. All the papers are back in my home town. Besides; I don't think they will issue one going by the dead account activity.

I applied online at ICICI Bank and got this quote. Not too bad a deal. What do you say?
  • Loan Amount
    Rs. 1,40,000
  • Total Interest
    Rs. 12,028
  • Fees + Tax
    Rs. 3,539
  • Total Cost
    Rs. 1,55,567
Applied online with Citibank as I have a pay cheque account with them. An automated call came back and then said they are on vacation (they did not use the word vacation) today:-).

I just got back after a visit to Canara Bank. Maintain a savings account with them as well as a locker. Once again, Personal loan only if my salary account can be shifted to them (Yeah right). On asking for a two wheeler loan, the manager asked; why do I want one and what bike am I buying. Has asked me to come on Monday.
What is the tenure in case of a loan from ICICI bank?

I believe Canara bank requires you to have a salary account with them if they were to provide you a loan. This was told to me when i enquired with them for a home loan before 4 years.
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Old 6th July 2013, 15:03   #32
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Default Re: Two Wheeler Loans

Here is a mail I have from KTM

Quote:
Please find below the detail price of KTM Duke 390.

Basic Cost : Rs 1,79,613/-
Octroi Charges : Rs 7,565/-
RTO Charges : Rs 14,360/-
Insurance : Rs 3,412/-

On Road Price : Rs 2,04,950/- (Mumbai On road)
Colors : White

Minimum Booking amount is Rs.30,000/- only & waiting period is 90 days.

HDFC Finance Scheme

Down Payment : Rs. 53,550/-

24 Months (ROI 11.00% p.a)
EMI : Rs.8,134 - End of Term Payment = 195216-151450 = 43766. Actual ROI = 43766/205000 = 21.34 FOR 2 YEARS, so ROI PA = 10.67

36 Months (ROI 11.00% p.a)
EMI : Rs 5,912 - End of Term Payment = 212832-151450 = 61382. Actual ROI = 61382/205000 = 29.94 FOR 3 YEARS, so ROI PA = 9.98

48 Months (ROI 11.10% p.a)
EMI : Rs 4,814 - End of Term Payment = 231072-151450 = 79622. Actual ROI = 79622/205000 = 38.84 FOR 4 YEARS, so ROI PA = 9.71

Documents Required for Finance & Registration

3 Photo
Ration Card, Light Bill/ Telephone Bill/ Rent Agg + Police NOC (If Rented)
Pancard
Latest 3 Month Salary Slip Or Form 16
Latest 2 Years ITR
Latest 6 Month Bank Statement.
8 Cheques for ESC
Passport Or Voter ID (For Registration)
I have added some more details, like the End of Term payment and Actual ROI.

While buying my Duke, I had taken a loan from Standard Chartered for 1.25L(for R15). Took a Personal Loan. It came to these interest rates but did not require any down payment, which was what I was interested in. If this or any other 2 wheeler loan does not suffice, look at personal loans.
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Old 8th July 2013, 13:32   #33
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Default Re: Two Wheeler Loans

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Originally Posted by imp! View Post
P.S Any word on the bikes yet?
No. I did check out the bike though. That kink in the exhaust so that it fits within the frame is indeed horrid to look at. Several wires are exposed under the fairing. Would have been nice if they were tucked in better. Motoroids review on the bike showed a poorly fitted wiring sleeve near the handle bar section. This does not exist and the execution is very neat.

Quote:
Originally Posted by djay99 View Post
What is the tenure in case of a loan from ICICI bank?
12months. This is for a personal loan.

Last edited by sandeepmohan : 8th July 2013 at 13:40. Reason: Forgot to add type of loan
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Old 8th July 2013, 13:37   #34
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Default Re: Two Wheeler Loans

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Originally Posted by sandeepmohan View Post
12months.
Interest rate quoted by icici bank is 15.5% on a reducing basis which looks ok for a two wheeler loan. This is infact cheaper than SBI. But negotiate on one time charges. All the best.
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Old 8th July 2013, 14:18   #35
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Default Re: Two Wheeler Loans

guys,

Bank of India also offers a two wheeler loan in the range of 10.7%

http://www.bankofindia.co.in/english/VehicleLoan1.aspx


Plus if these banks refuse to give you a loan saying you need a savings account for 6 months and all, ask them to show it in writing and tell them you would clarify this with the banking ombudsman. Now see how these banks scamper to process your loan.


cheers!
sai
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Old 9th July 2013, 07:41   #36
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Default Re: Two Wheeler Loans

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Originally Posted by djay99 View Post
But negotiate on one time charges. All the best.
Approached Citibank for a Personal Loan. I should have called them a long time ago. Though not all that better when it comes to interest rates over ICICI Bank, they have offered 15.25% rate of interest on a reducing basis. 12 month tenure at Rs. 11749. Loan amount Rs. 1.3 lac. No processing charges. I have to pay Rs. 225 for stamp duty charges. Documentation is minimal too. All they are asking for is PAN, One photograph and Identity Proof (Passport). All I did was pick up the phone and request for a call back. A person will come over to my work spot to collect the documents and another person will come to verify originals. The catch in the deal is that pre closure is expensive. Not that I was planning on pre closing. The lady at the other end provided her direct land line number for any queries at any point. With this, I see no reason to look at any other bank. Will be submitting my documents today and hope for the best.

Last edited by sandeepmohan : 9th July 2013 at 07:46.
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Old 12th July 2013, 19:19   #37
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Default Re: Two Wheeler Loans

What about paying by credit card and converting it into EMI? Is there any catch in this?
ICICI quoted 6%+tax for 6 months, 8%+tax for 9 months & 10%+tax for 12 months.
The rates seem way lower than the loans; or am I missing something here?
I'm on the lookout for financing my bike too
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Old 12th July 2013, 23:26   #38
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Default Re: Two Wheeler Loans

Quote:
Originally Posted by sandeepmohan View Post
Approached Citibank for a Personal Loan. I should have called them a long time ago. Though not all that better when it comes to interest rates over ICICI Bank, they have offered 15.25% rate of interest on a reducing basis. 12 month tenure at Rs. 11749. Loan amount Rs. 1.3 lac. No processing charges. I have to pay Rs. 225 for stamp duty charges. Documentation is minimal too. All they are asking for is PAN, One photograph and Identity Proof (Passport).
Good deal IMO. All the best.


Quote:
Originally Posted by ajman28 View Post
What about paying by credit card and converting it into EMI? Is there any catch in this?
ICICI quoted 6%+tax for 6 months, 8%+tax for 9 months & 10%+tax for 12 months.
The rates seem way lower than the loans; or am I missing something here?
Interest rate they are quoting is a flat 6%. So for a 1L loan, you would pay 6000+taxes as interest for a tenure of 6 months.
You would pay a similar interest amount if you avail loan from a nationalized bank but for 12 months. So you tend to use the credit for a longer time when you avail loan from a nationalized bank
Search for flat interest vs reducing interest on google.

Loans on CC are costly unless CC Bank has a tie up with merchant. I would say avoid.
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Old 19th July 2013, 08:06   #39
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Default Re: Two Wheeler Loans

The personal loan that I had applied for at Citibank was processed in less than a weeks time. They credited the amount and for some strange reason, I did not get an SMS alert. You can imagine my joy when I logged in to internet banking to find so much money just sitting there. More greens are always a joy.
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Old 3rd October 2013, 17:29   #40
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Default Re: Two Wheeler Loans

Loans for two wheeler to get cheaper ;-)

http://profit.ndtv.com/news/economy/...om=home-latest
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Old 3rd October 2013, 21:06   #41
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it couldn't have come at a better time.
i am awaiting delivery of my Enfield Thunderbird and have to take a loan for it. With 18.05% it is way higher than whaT bank offers car loan customers(10.75%).
i really hope this gap would become shorter in the coming weeks.
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Old 4th October 2013, 00:46   #42
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Default Re: Two Wheeler Loans

Gentlemen,

I had a very interesting conversation with the Area Manager of Punjab National Bank(PNB), Bangalore who is responsible for the approval of all sorts loans, including two-wheeler and four wheeler loans. He revealed quite many secrets about the trade practices followed by many banks, as he told me all this on personal level. He said that the banks try to avoid sanction of loans for two wheelers. This is because the two wheeler loans are more susceptible to a failed repayment or not paid in time etc, whereas, there is a lesser risk involved in sanctioning four wheeler loans. He said that the policies are framed in such a way that it is difficult to get a bank loan and the customers are discouraged to take a loan. For example, the interest rate for four wheeler loan is kept between 10.75% to 14.00% by the banks. Whereas, they charge an interest rate of 14% to 16.5% for two wheeler loans. A customer is not required to produce the copy of Driving License, in order to get a four wheeler loan. Whereas, a customer should compulsorily produce a Driving License to get a two wheeler loan, and many motorcyclists/scooterists do not hold a valid Driving License. This makes it less affordable and inconvenient for the customers to opt. There a few other tricks the banks play.

I feel that such practices are not justifiable and banking firms should rather judge the repayment capacity of a customer by other assessments and criteria. They can make lots of profits if they change their policies and start offering loans at better rates and make it easier for customers.
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