[sandeepmohan]

After visiting various banking websites; it makes no sense to opt for a two wheeler loan. The high interest rates are no go. My SBI branch does not even have two wheeler loans. Personal loans are offered only if I have a pay cheque (salary) account with them.

I have lined up for the new KTM 390 but don't have all the funds to pay for it in one go. The paper Bajaj Finance gave me looked attractive as I did not do the maths. I am glad I posted it here and was warned by several forum members that in reality, I was going to pay 19.5% than the claimed 9.50%. Those hidden numbers go as several other charges and processing fees.

What is the best way to go about funding this motorcycle? Personal loan seems the way to go. As a salary account holder of Citibank, I will be speaking to them on what best they can offer. Their website claims a lower end of 14% interest based on what one earns and several other factors. I am gonna bargain hard with them (I am no good at it).

On the other side, I'd like to hear your take on how to purchase this motorcycle. A cash down would have been great but that is a long way off. I can't wait longer to save up any more.

[azm@bpl]

Though it may sound absurd and irrational but if i had to go for a cheaper loan of around Rs150,000; i would try LAP (loan against property). being a secured loan, rates are as low as 12% p.a. on monthly reduction of balance and some banks dont even charge a penalty on pre-payment.

[vinair]

Try HDFC buddy, I recently inquired and they have pretty reasonable rate of interest. If possible, open a HDFC bank account and then try.

Guess they have some good offer for account holders.

[BoneCollector]

Do you have a FD in your name or someone in family? You can avail an Overdraft on your FD, upto 75% the value of FD. And then you can repay the loan as and when with whatever amount you can every month. Interest rates depend on your FDs rates. There are already threads with details on how good/bad is FD overdraft .

[GTO]

I highly recommend Loan against FD in such situations.

Way cheaper, immediate disbursal, flexible repayment, no hypothecation etc.

[sandeepmohan]

Originally Posted by vinair

I recently inquired and they have pretty reasonable rate of interest.

My wife has a pay cheque account with them.

Is this for personal loan and two wheeler loan? I just tried their on line EMI calculator for two wheeler loan and it works out to 18% rate of interest. That is another no go.

[rk_sans]

I would suggest personal loan, way cheaper than two wheeler loans. Still have the option of closing it down earlier(but pre-closure charges apply).
Any bank offering two wheeler loans are costlier than personal loans.

[djay99]

@Sandeep,
Did you visit Vijaya Bank folks as i suggested in an earlier post?

They provide two wheeler loans at 10.75% on a daily reducing basis and this is the lowest interest rate for a two wheeler loan in india.

[hellmet]

My advice will not help you with your loan issue.

If you're unable to find cash to fund a motorcycle purchase, you should re-think your whole purchase idea itself. Loans are nice if you have enough cushion to continue it in case of any unforeseen financial circumstances or if your employer is reimbursing interest.

However, if you're having to scrape all your savings and still find yourself short of cash, you should abstain from purchasing a depreciating, illiquid asset such as a motorcycle. Listen to your brain even if your heart says otherwise.

You should procrastinate your motorcycle purchase for later. If you want help doing so, feel free to PM me

[sandeepmohan]

Originally Posted by djay99

Did you visit Vijaya Bank folks as i suggested in an earlier post?

Not yet. Did not get a chance to last weekend. I see the same mentioned on their website and have also identified a branch near my house. Will visit them and update. The interest rate is the best in the business.

Originally Posted by hellmet

If you're unable to find cash to fund a motorcycle purchase, you should re-think your whole purchase idea itself.

Oh no no. I am not using up all my savings to put a down payment. Just using a portion of it. I am no fan of a loan myself. This time around, I can't help it and I need a new motorcycle.

You need to remember that this is no 80K motorcycle purchase. Its 2lacs. Not all of us can cough up 2lacs in one go.

Appreciate the advice.

[hellmet]

Originally Posted by sandeepmohan

Oh no no. I am not using up all my savings to put a down payment. Just using a portion of it. I am no fan of a loan myself. This time around, I can't help it and I need a new motorcycle.

You need to remember that this is no 80K motorcycle purchase. Its 2lacs. Not all of us can cough up 2lacs in one go.

Appreciate the advice.

Fantastic. All the best

Btw, I'm not very clear or sure about this, but I've heard some people use Chit Funds as a quick loan. Again, not sure about how it works.

[vinair]

Originally Posted by sandeepmohan

My wife has a pay cheque account with them.

Is this for personal loan and two wheeler loan? I just tried their on line EMI calculator for two wheeler loan and it works out to 18% rate of interest. That is another no go.

18% p.a? Try speaking to this guy Rakesh - 8553109183 This guy says 9% p.a (HDFC).

[sandeepmohan]

Originally Posted by vinair

This guy says 9% p.a (HDFC).

This is on a personal or two wheeler loan?

[vinair]

Originally Posted by sandeepmohan

This is on a personal or two wheeler loan?

It's for two wheeler. This guys deals with two wheelers.

And they fund only 70% of the cost (not sure if its on the on road price.)

[sandeepmohan]

Originally Posted by djay99

Did you visit Vijaya Bank folks as i suggested in an earlier post?

Stepped in to Vijaya Bank on my way back home. I need to have an account with them, they will issue a two wheeler loan only after six months post account opening and based on my transactions.