Re: Bank Loans for a Super Bike

Is it possible to get bank loans for used superbikes ??

Re: Bank Loans for a Super Bike

Hey. Yes it's possible to do that. However there are certain variables attached to the same, which are as follows.
- the bike should not be older than 3 years from the current date you apply for a loan.
- the interest rate will be higher on the motorcycle.
- you can get a loan only for a period of 3 years.
- the money is not disbursed to you first. You will have to first purchase the vehicle, take it over for inspection and then the money is transferred over to you. It's kinda weird here.

The information is basis The protocol HDFC bank follows.

Cheers

Re: Bank Loans for a Super Bike

Instead of taking an auto loan for a SBK, there's a very good alternative.
If you have a home loan for more than a year and have been regular with instalments, you can take a personal loan on top of that ( called a top up loan).
The rate of interest is usually 0.5 to 1.5% higher than the home loan but is still less than a two wheeler loan.

Re: Bank Loans for a Super Bike

Hi, Im looking to buy R15s with downpayment of Rs.50,000. I tried harder but i really don't understand fancy terms used by bankers. I heard that HDFC bank gives fair deal with low intrest, processing fees and all that. I want to take loan but afraid to go to any banks since i dont understand the terms. Can you guys help me find best deal to get loan from? BTW what is flat interest? does it make much difference?

Re: Bank Loans for a Super Bike

Loans are an easy to take from any banks as long as your papers are clear. For R15 you would need a loan of around 75000. Did you ask the dealer, generally they have good options.

Never take a loan on flat interest. You should always take interest on reducing balance.
Let me explain

You take a loan of 1,00,000 at flat rate of 10% for 5 year loan then you will pay 1,00,000 / 5 years is 20000 is your principle amount. Now add to this the flat interest of 10% = 10000. Hence your monthly emi will be - 20000 (principal payment) + 10000 (Interest) = 30000 / 12 = Rs 2500 per month. Hence here you are paying a flat calculation. But think this way every month you are paying some of the principal amount so your interest should be on the reduced principal. This is know as reducing balance.

E.g First year you paid 20000 as principal so next year your outstanding principle is 80000 hence you should pay 20000 + 8000 i.e 28000 / 12 = 2333 per month. But your emi don't reduce- hence you are paying more principle amount in this which means lower interests in later.

In short - You should always take the reducing balance interest.

Re: Bank Loans for a Super Bike


Thank you so much for the clarification. On road price for YZF R15s here in Tiruchirapplalli is Rs.1,37,000. I need to get loan for Rs.90,000. Are they calculating reducing interest on Annual basis or monthly basis? I can repay the loan within 18 months/1.5 year but im afraid they would rather fix the loan period on Annual wise, then on month wise. So i have to choose the loan period for 2 years. is that so?

Re: Bank Loans for a Super Bike

Depends on the bank you want loan from. I would suggest you should go with Nationalized banks. They are good as they will not charge any pre-payment cost when you close the loan faster.

Though all banks provide loans on Yearly basis only, you can always close the loan in 18 months or even faster.

Re: Bank Loans for a Super Bike

Thanks for further clarification bro. will talk with bank people and get back with an update.

Re: Bank Loans for a Super Bike

Hi eveybody,

I have recently joined xbhp after my purchase of Triumph Street Triple. Also I am a banker by profession (Nationalized bank) so If anybody has a query about loans for Superbikes, I am happy to answer. Friends kindly keep your questions limited to purchase of Superbikes only because loan for smaller capacity bikes are easily available accross thr market and ROI in those loans doesn't create much difference.

Thanks

Re: Bank Loans for a Super Bike

Please share the costs and finance structure including the retail price, discount received and loan tenure. Had been planning to get a ZX10R but finally ended up with an RC390 in 2015.

Re: Bank Loans for a Super Bike

I'll go step by step

1. Cost: I guess by cost you mean the cost of loan. If you mean cost of bike I'll cocer that too. The cost loan for nationalized PSU banks are mostly in three parts a) Process Fee b) Documentation charges & c) stamp paper charges.

Process fee: is mostly 1% of the loan amount or Rs 100-300 per lac. This structure may vary from bank to bank. During festive season or monsoon most of the bank start bonanza offer in which to offer loan for 0 process fee. This offer if you track properly would be available for atleast 6 months (on/off ) in a year.

Documentation charges: they are mostly nominal charges atound 1000-2000 Rs

Stamp charges are also Rs 1000-2000

2. Finance structure : most of the nationalized PSU bank offer 80-85% finance of the on road cost.

Rate of Interest : Nearly all nationalized PSU banks have reducing rate of interest repayment which means as you keep paying the interest amount goes down. And you can prepay without any penalty. Rate of interest is different for different banks. Some banks have formed seperate schemes for big capacity bikes. These banks offer higher rate of interest i.e around 11-13% but some banks still don't have seperate scheme for superbikes and treat them as normal two wheeler loan ROI fir these banks are as low as 8.85% -9.20%. Oriental bank of commerece & Bank of India are two such banks which offer these rates. For other banks check their websites.

Tenure of the loan is mostly 60 months ( you can prepay as mentioned earlier) Some banks may offer 84 months tenure.

At ROI of 9.10% and 60 months Emi is Rs 2080.69 per lac.

For my street I got cash discount of Rs 50000. And shop credit of Rs 50000. As its a discountinued model also Cbr650f is also offering discount of Rs 1.00 lac to clear stock. Even speed triple is also selling at discount of Rs 1.00-2.00 lac

None of this applies on HDFC , ICICI or any other private sector banks

Re: Bank Loans for a Super Bike

I am out in the market to buy a SuperBike. Can you help me with the loan processing as the ROI that I am getting from most of the banks is little high as compared to the ROI you mentioned. But not sure how I can get this from a Nationalized Bank. I am from Mumbai

Re: Bank Loans for a Super Bike

Hi,

You can approach Oriental Bank of Commerce or Bank of India. I am personally in oriental bank and I do hv a friend in Bank of India.
For Oriental bank of commerce the ROI is MCLR+0.50% i.e. 9.10%
And for BOI is MCLR+0.85% i.e. 9.35%

For approaching any of the bank you have to take quotation from the dealer. Arrange your documents listed below

1. Filed ITR for last 3 years
2. Form -16 ( if you are service guy)/ CA certified computation if you have business
3. Copy of Aadhar Card, PAN Card,
4. Some one who can stand as guarantor ( not mandatory if your take home income is cosiderably well)
5. Address proof.
6. Source of Margin money
7. CIBIL report ( this is totally optional as banks extract it themselves but if you take it with you it becomes more easy to convince)

ROI that I have quoted are 100% acurate. And should not vary (be more than) what I have told you.

Hope this will help. For more assistance let me know which bike you are planning , your occupation and approx income

Re: Bank Loans for a Super Bike

Can I get your number

Re: Bank Loans for a Super Bike

Mail me on [email protected]. Will share details