Two Wheelers Loans India
The surging growth of the two wheeler industry in India has been influencing several new entrants to start manufacturing newer version of automobiles. In the last fiscal, the two wheeler industry in the country has seen a remarkable double digit growth against the previous year. A total of 5, 56,000 units of the automobiles were produced in India in the last financial year. Leading two wheeler manufacturers like Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor are continuously innovating and coming up with new two wheelers to rope in the increasing number of potential consumers in India.
The annual sale of these various companies has also increased due to the three wheeler loans offered by numerous financial institutions and banking organizations.
By availing a two wheeler loan, many people in India 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. Most of the public sector undertaking (PSU) banks in India charge interest of about 12% per annum. Majority of the PSU banks offer an amount of INR 50,000 to INR 1, 50,000 as loans for a two wheeler.
There are some criteria based upon which the auto loans for two wheeler are sanctioned. The individuals seeking loans should have annual gross income of about INR 50,000 or more. The individual can be a businessman, professional or car is job holder. Loans are provided for both new vehicles or for used two 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. The interest rates may be higher in the private banks and private financial institutions. One thing should be noted that all such terms and conditions may vary from one bank to another, one financial institution to another.