If you are planning to buy a two-wheeler, you may require some financial assistance. One of the best options for financing a two-wheeler is to opt for a 2-wheeler loan. This type of loan is specifically designed to help individuals purchase a new or used two-wheeler without any hassle.
When it comes to availing a 2-wheeler loan, you can get a maximum of up to 85% of the on-road price of the vehicle. However, it is essential to keep in mind that you will need to pay a margin money of 15% of the on the road price. This margin money includes expenses such as vehicle registration charges, insurance, and one-time road tax.
It is also important to compare the interest rates offered by different banks and NBFCs (Non-Banking Financial Companies) before you request for a 2-wheeler loan. Usually, the interest rate for a 2-wheeler loan is calculated on a daily reducing basis. However, NBFCs usually charge higher rates than banks.
Apart from interest rates, there are other charges that you should consider before taking a 2-wheeler loan. For instance, processing fees usually come around 0.5% to 1.5% of the loan amount. If you are planning to pre-close the loan at any time, a pre-closure fee which is around 2% to 5% of the principal outstanding at that time is applicable.
In conclusion, a 2-wheeler loan is an excellent way to finance your two-wheeler purchase. However, it is essential to know the terms and conditions, interest rates, margin money, processing fees, and pre-closure charges before you opt for this type of loan. By considering these factors, you can make an informed decision and enjoy a hassle-free two-wheeler purchase.