Three Wheeler Loans
The surging growth of the three wheeler industry in India has been influencing several new entrants to start manufacturing newer version of automobiles. In the last fiscal, the three wheeler industry in the country has seen a remarkable 18% growth against the previous year. A total of 5, 56,000 units of the automobiles were produced in India in the last financial year. Three wheeler manufacturers, like Bajaj Auto, Piaggio and Mahindra & Mahindra are expecting to have severe competition to rope in vast number of potential consumers in India.
The annual sale of these various companies has also increased due to the three wheeler loans offered by banks and financial institutions along with finace schemes offered by three wheeler companies like Bajaj Auto.
There are some criteria based upon which the auto loans for three wheeler are sanctioned. The individuals seeking loans should have annual gross income of about INR 50,000 or more. Three wheeler loans are also provided to proprietor based firms, partnership firms and even to the limited companies. Loans are provided for both new vehicles or for used three wheelers that are up to 3 year old.
If you are a transport operator then you have to down-pay minimum margin money of about 15 % of the invoice value, tax amount and premium of insurance for buying a brand new three wheeler. For a used one, you have to pay minimum margin money of about 25%. Requirement of guarantee is not mandatory, however in some of the cases you may be asked to deposit any collateral security. Repayment is usually done within 60 months in equated monthly installments.
By availing a three wheeler loan, consumers have been able to get away with the hurdle of huge amount of one time monetary investment. If you are taking the auto loan, then in most of the cases you may have to give small down payment. However in some of the cases the customers need not make any down payments at all. Repayment is done mainly through equated monthly installments (EMIs). Most of the public sector undertaking (PSU) banks in India charge interest of about 12% per annum. Usually, the loan amount of INR 1, 00,000 is provided by most of the loan providers for a three wheeler. The interest rates may be higher in the private banks and private financial institutions. Depending upon the respective terms and conditions, the regulations may vary from one consumer to another as determined by the loan provider in case of a three wheeler loan.