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Old 12th April 2008, 07:59   #1
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Default Indicative EMIs - Clarification Pls!

I was reading a auto mag recently and came across an ICICI 2-Wheeler Loan fine print about something they called indicative EMIs. I don't remember exact figures but it said that the EMI for a 3 year tenure per 10000 rupees would be 377 rupees.

Am I to understand that the EMI per lakh on 2-wheelers is 3770?!
The figure for 1 year was astronomical!

Eg: (Hypothetical figures)

Cost of Kawasaki Ninja 250 - Rs 200000
Downpayment - Rs 50000
EMI - 1.5 x 3770 = 5655!

That's closer to what one would pay for a Swift!

Can someone please shed light on whether I got this right?

Also, will the loan tenure be increased to maybe 5 years for the bigger, more expensive bikes that are heading to India? Otherwise the EMI with above calculations for an R1 was something close to 35K!
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Old 12th April 2008, 10:07   #2
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In the auto loan industry the 2 wheeler loans are disbursed at alarming interest rates.Those rates are unbelievable.The reason why they go un noticed is that the max loan amount for a Indian 2 wheeler is 50k and it should be costing you nearly 1880/- per month.So for a lakhs it is 3760 rs which is the scenario.This could be attributed to the difficulty in confiscating the bike in case of non payment of EMI.
In kerela now there are few banks who gives loan for a 2-wheeler and some manufacturers are also denied support from banks as the resale of their products are poor.
ram
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Old 12th April 2008, 11:12   #3
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I bought my Tb on a personal loan, because the motorcycle loans were not viable.

If I remember things correctly in 2003, no matter what the cost the upper limit for a loan was 60k.
and they would only give about 75% of that.

so my bike and my second hand car were bought using personal loans.
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Old 12th April 2008, 17:28   #4
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Due to the increased risk factor, the downpayment as well as interest rate for two wheelers are higher than that for cars. I had read in the ET that some banks actually are getting out of this segment altogether.

That said, the numbers you quote do seem to be on the higher side. But then, not too many Team-BHPians would deal with ICICI anyways.
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Old 12th April 2008, 20:08   #5
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Quote:
Originally Posted by GTO View Post
That said, the numbers you quote do seem to be on the higher side. But then, not too many Team-BHPians would deal with ICICI anyways.
The numbers are correct. I checked today.

Please explain the second part as to why TBHP members will not deal with ICICI.

Also, is the upper limit for loans set to change. I don't see people being able to buy even the Ninja 250, let alone bigger bikes (upcoming 600cc Suzukis etc), without proper finance. I know I can't!
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