Amen to that... I am also hoping to get most of my finances sorted out within a year and hopefully I would not need to take out a loan for the ST7 or Z1000 as the case maybe.

Are you looking at a used litre class bike?

not just any litre class but specifically an r1.....but not right now as dont have the moolah for it.... but will be definitely in the market in the upcoming 1.5-2 years...

Just got a call from Garware Motors and HDFC ... here are the details so far:

1. The bangalore showroom would open in about 2-3 weeks.
2. The bikes would be on display and test rides would be available.
3. You can start the booking process now by contacting Mr. JD @ 9845501100

Regarding Loan:

1. HDFC has a partnership with Garware and they cover ST7.
2. The quoted interest rate is 16%. I am sure this would come down after bargaining.
3. The bike is about 5,77,000 on road and 70% of the price would be covered by the loan.
4. The rest 30% would be paid by us.
5. I DO not remember the booking amount properly but it was around 80,000.

Hope this info comes in handy.

R1 is a great choice.

the booking amount for the gt650r is 50k...

Well here are my 2 cents. I recently enquired for a few superbikes and came across the interest rates.

1) Ducati & Yamaha (Mumbai):
HDFC bank provides loan. The guy said 8% fixed. On further bargaining he said max i can give is 7% Fixed rate or 13% Reducing + 1% Processing.
Repayment period of 5 Years and a prepayment penalty of 2% on remaing amount.
However you can prepay upto 25% of the remaining amount.
They were providing me 80% finance
I did the math and reducing rate of 13% was a better deal.

2) Harley Davidson Mumbai:
ICICI Bank offers loans. Their interest rates were much higher than the rates of HDFC for the same amount. They hadnt mentioned the rates, however it came to around 15% reducing. They had 3 and 5 years for prepayment, EMI differed accordingly.

3) Personal Loan on Second hand Bike.
HDFC offered 14% Reducing. (this HDFC personal loan was cheaper than the two wheeler loan which icici was offering )

Interesting facts
Well when I contacted the HDFC guys here in Delhi, I confirmed how much down payment is necessary, he said its upto you..you want a 8L loan we'll give you 8L (obviously depending upon income), if you want 10L we'll give 10L irrespective of how much you're paying for the bike, as down payment.
But there is a small catch. there the guy said he could get a work around done for this from his end with the dealer (as a quote is needed for the bike price) for the loan to be approved by the bank, and could give me further information if I say yes for taking the loan.
But I honestly wasn't ready that time and asked him to give me more time to think and get more info about my finances

I think the guy here is trying for some kind of 'jhol' as they say here in mumbai

What he will do is, he will quote the price of the bike at a price higher than the selling price, generally such tricks are rejected in a vehicle segment, but they work incase of home loans.

Now the following discussion is made under the assumption that 'avoiding to pay down payment is the motive.'

Any bank will lend you money only as long as you yourself have invested money in that purchase(its not the same with personal loans since it attracts higher interest rates to keep that in check). hence its mostly 70-90%, The banks expects u to pay atleast 10-30% of the total price.

In home loans if a house is costing 1 cr, the bank expects you to pay atleast 10% ie 10lacs. Now lets assume you do not have 10lacs at all. Now if i quote the valuation of the house at 1.10 cr, going by the 90:10 rule, the bank will lend you 1cr. and expect u to pay the rest 10lacs. Now this is a 'setting' that u do with the builder. So u end up paying 1cr for the house which is completely paid for by the bank, without the bank having knowledge of it and technically you do not pay any down payment at all.

But the same scenario cannot be applied to vehicles where ex showroom prices are made public and are constant. So if for a 10lac bike, the bank is willing to provide 90%, you cannot tweak the rate and quote it at 11lacs to get full 10lacs(90% of 11lacs) as loan.

On the lighter side, i assume the ducati showroom in delhi is shut so you might as well reconsider your purchase or sort your finances the Ducati Mumbai showroom way.

Good Luck with your SBK purchase. Cheers!

^^exactly, but he said, hew couldn't get me 100% loan, thats for sure

I am assuming the 16% interest rate is a reducing rate of interest.

Well this dosent make sense. A vehicle loan will any day be cheaper than a personal loan, since there always is a resale-able asset(the bike) incase the person defaults with the EMI payment. Hence the interest rates are lesser than personal loans.

In personal loans, if loans are provided only basis income, without any security/collateral/guarantor, the interest rates have to be higher.

HDFC in Mumbai is providing me with a personal loan of 14% reducing rate, without any collateral/security/guarantor.

So if they are charging 16% for a vehicle loan that does not make sense. You might as well apply for a personal loan and pay 2% lesser rate of interest. Unless the personal loan rates are higher that 16% in your city which is highly unlikely.

So I suggest you check the vehicle loan as well as personal loan rates. ApnaPaisa: Compare and Get Quotes for Loans, Insurance, Investments & Mobiles will get you contacts of banks willing to provide you with personal loans at 14-15% reducing rate.

Now a lot depends on your income too. So i suggest you to check these options once again before zeroing on your financer.

Godspeed!

probably because it costs quite a bit less than ST7.

Thanks for sharing the information. This will help anyone who is looking for a loan on a big bike.

Yeah... what you say makes a lot of sense. I will ask for specifics on the loan as I did not get time to ask in detail about it. It should be a reducing rate at 16%... but I am sure it can be brought down once you show full interest in buying the bike and bargain hard.

and thanks for sharing the valuable info mate. Much appreciated!

Its an interesting topic and very useful too. Already has lot of information for someone like me, who has pretty much zero knowledge about all this

I have read all the posts but I dint really understand what a "reducing rate of interest" means. Mind explaining it a bit?

There are two types of interest rates.

1: Fixed Rate of Interest:
If you borrow a loan of say 10lacs for 5 years, and the fixed rate of interest is 7%, you have to pay an interest of Rs.70,000 on 10lacs every year for 5 years. So total interest paid will be 70,000x5 = Rs.3,50,000.
This is a very simple rate of calculation, where the interest rate is fixed.
This rate is always cheaper, almost half of reducing rate of interest.


2: Reducing Rate of Interest:
Here, you pay an interest only on the remaining balance of the loan.
For eg. if you borrow 10lacs for 5 years, and the reducing rate is 13%.
Here, as and when you pay your EMI, your principal amount keeps reducing, and then interest is applied only on the balance of the loan remaing.
Say if your EMI was 30,000 a month, then at the end of one year you would have paid 30,000x12=3,60,000.
So they will reduce 3,60,000 from 10 lacs, and charge you an interest of 13% on the remaining balance that is 6,40,000 for the second year.
Second year also you will pay 3,60,000, so they will reduce that from 6,40,000 and charge you interest on the remaining balance that is 2,80,000 for the third year.


So whenever you opt for loan, always ask for both, reducing rate as well as flat rate, calculate the total cost of the loan including interest from both the methods and go for the one where the total cost is cheaper. A cheaper total cost also results into a cheaper EMI

For Eg. HDFC was offering a Fixed Rate of 7% and a reducing rate of 13% for Ducati.
EMI thru fixed was around 17200, and reducing was around 16750, for the same amount of loan. So in this case a reducing rate was much cheaper.

Hope that clears the air.

Cheers!

Bhushan.. thanks for explaining that so clearly.

^^^thanks for the explaination......