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Am I eligible for a two wheeler
loan ?
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What is the maximum loan I can get
?
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What Schemes are available in the
market ?
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Are there any cheaper options ?
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How fast can I get a loan approved
?
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Can I get a loan without proof of
income ?
If you are salaried individual between 21 and 60 years of
age with a monthly income of Rs. 3,500 or a self-employed professional
between 21 and 65 with an annual income of Rs. 42,000/- you are eligible for
a loan.
You can obtain finance upto 95% of the vehicle value
depending on the make and model of vehicle you choose. Finance on Royal
Enfield motorcycles and the Bajaj Eliminator is restricted to 70% of the
vehicle value. If you do not have income proof funding is restricted to 70%
of the vehicle value. Additionally your net monthly income should be atleast
3 times the Equated Monthly installment.
Loan repayment vary from 6, 12, 24, 30 and 36 months. The
most heavily advertised schemes today are the 0% finance schemes. These
involve making a refundable interest bearing deposit of 50% of the vehicle
value in the finance company. These schemes are very attractively packaged
but the real rate of interest you pay is the same if not more than a regular
finance scheme. Similarly 100% finance schemes involve paying advance EMI's.
The most clear cut schemes are the Margin Money schemes where you pay
interest only on the actual amount financed.
Most private finance companies operate on a flat rate of
interest. For example if you take a loan of Rs. 30,000/- for a period of 3
years you are still paying interest on Rs. 30,000/- for each of your
installments despite having paid of a majority of your principal. Most
co-operative and nationalised banks operate on a reducing balance interest
rate which takes into consideration the principal amount you have repaid.
They are the cheapest option available.
Although in some cases the loan can be approved on the spot
most loans are sanctioned within 48 hour to 72 hours.
Finance upto 70% can be provided without income documents to
small business owners and people with clean loan repayment records in the
past.
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