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Thread: Bank loans for Used Superbikes is possible

  1. #1
    Rusted trustvishwas's Avatar
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    Default Bank loans for Used Superbikes is possible

    Bank loans for Used Superbikes is possible

    Yes. You heard it right. It is certainly possible....not in a theoretical way but practically....

    I recently opted for a 2012 model Yamaha FZ1. I bought it on loan. Details are as follows :

    I first approached Bank of India, Pune and enquired whether they provide loans for purchasing second hand two wheelers. They replied yes.
    Then I submitted -
    1. Copy of 3 years Income Tax Returns
    2. 2 Photographs
    3. Copy of Address Proof (Passport / ration card / landline bill)
    4. Copy of Identity Proof (PAN card / driving licence)
    5. Completed application form.

    At this time, I had not finalised which bike to purchase. I knew the amount till which I wanted to buy a bike and asked bank to check my income / liabilities and confirm whether they can provide the loan to the extend I wanted. (Not that I wanted much but given the bleak outlook of my income.....just wanted to be sure )

    I submitted my application around 11 am...called them up at 4.30 pm on same day to enquire.....The concerned officer told me that I can get the desired amount and should he sanction the loan.......I replied YES.....While on call, he pressed <Enter> on his comp and voila.....loan was sanctioned.

    Next day, got the loan agreement franking done and submitted them to the bank.....signed all the relevant papers....took possession of sanction letter.

    Please note that till this time, I had not finalised which bike to purchase.....Difficult for you to identify a bike and hold it till bank sanctions your loan.

    Fortified with the sanction letter, I searched around and found a sweet deal of a 2012 FZ1 with only 2200 km on speedo. Yamaha dealer himself was selling that bike. Fixed up an appointment for next day and turned up at his place....saw the bike, documents etc....Got contact of Registered valuer approved by bank....asked his person to come down to the showroom....paid him Rs.1500 cash as valuation charges. (He couriered written valuation report on the same day)

    Bike was in absolute stock, mint, scratchless condition. Still SMSed the bike number to couple of friends who confirmed that the bike was never repaired (as per yamaha service network record) and no insurance was ever claimed (as per insurance company records).....All this was achieved in 15 minutes of me landing up at the showroom. Now there was no stopping me from closing the deal....or was it?

    I had not ridden the bike till now but looking at its condition and feedback received, decided to close the deal.The Yamaha dealer was opening a new Nissan showroom on the same day and was getting frantic calls from his family to turn up for pooja. Told the dealer to go ahead for pooja and I returned back to Pune.

    Next day called him up and after haggling a bit, closed the deal....transferred 1 lakh as token amount to my Bank of India saving account and then transferred it to the dealer account. The logic behind this transfer was to generate a record in Bank of India books that I had paid this amount out of my required margin (though I wanted a loan for lesser amount than they had sanctioned)....By evening, the dealer confirmed payment receipt and told me to come down whenever possible to close the deal.

    I was busy in work for next couple of days so could not go to Mumbai to take delivery. Dealer was willing to send the bike across to Pune but I did not want anyone else to ride the bike. After couple of days, told Bank of India to transfer required funds to the dealer.... they did that and dealer confirmed that he had received payment.

    Next day, hitched a ride with some friends and landed up at the dealership. Formalities were completed in next 15 minutes....information about various features took a bit longer but I was ready to go within an hour of landing there.

    Returned riding the bike…me and my friends took turns to ride it. It was absolute pleasure.

    Went to Bank of India branch next day with sweets and showed them the bike, handed over original receipts to bank.

    End of story….beginning of EMI…..

    The criteria for second hand bike purchase are –

    1. Vehicle has to be less than 3 years old
    2. The margin money will be min. 30%
    3. Repayment will be max 3 years.

    I got the loan at 11.25% daily reducing interest rate. On request, bank even waived off processing fee. BTW, I do not have even a single business relationship with Bank of India. I only have a saving account with them with an average balance of 1000 in it.

    The reason behind this long story is to show how easy it is to get loans from nationalized banks. Don’t fall in the trap of other finance companies.
    Last edited by trustvishwas; 11-20-2013 at 04:40 PM.
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    Bank loans for used superbikes is possible - Bank loans for used superbikes

  2. #2
    Moderator The Monk's Avatar
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    Default Re: Bank loans for Used Superbikes is possible

    Topic Approved


    Thanks for sharing
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    Default Re: Bank loans for Used Superbikes is possible

    Sir, @trustvishwas

    So this will be categorized under Two-Wheeler loans, right? and not personal (noob?) The documents required, are they same in all banks or private ones have a different requirement?
    A friend of mine inquired about the same in HDFC ('cause it seems they are the only SBK loan provider) and found out that the interest rates are as high as 13.5% for N650 with a down payment of 30%. Any income bracket that they specify?


    Thanks for sharing. This is indeed enlightening! @snehithpereira - looks like your dreams are a step closer from turning into reality. Have a look, mate!
    snehithpereira and Sid85 like this.
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    Default Re: Bank loans for Used Superbikes is possible

    Thanks for sharing , guess it's time many who are dreaming of owning one will think about this. . .

    Cheers!!!
    trustvishwas likes this.
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  5. #5
    Rusted trustvishwas's Avatar
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    Default Re: Bank loans for Used Superbikes is possible

    Quote Originally Posted by chaosaddict View Post
    Sir, @trustvishwas

    So this will be categorized under Two-Wheeler loans, right? and not personal (noob?)
    These loans can be categorized either as Two wheeler OR as SECURED personal loans. Secured personal loans are different than Unsecured loans. In two wheeler / secured personal loans, the bank hypothecation is registered on your bike at RTO.

    Quote Originally Posted by chaosaddict View Post
    The documents required, are they same in all banks or private ones have a different requirement?
    The documents would be more or less the same.

    Quote Originally Posted by chaosaddict View Post
    A friend of mine inquired about the same in HDFC ('cause it seems they are the only SBK loan provider) and found out that the interest rates are as high as 13.5% for N650 with a down payment of 30%. Any income bracket that they specify?
    HDFC is NOT the only SBK loan provider. Any Nationalised bank provides that. I have no clue about private banks.

    Please keep in mind that quoted interest rates and actually charged interest rates are wildly different. It is plain & simple cheating simply because you don't bother to calculate the actual EMI. Also always check pitfalls about prepayment charges, foreclosure charges, processing fee etc.

    Any bank does NOT have an income criteria. Loan amount is based on the basis of your income. eg. for Bank of India, 24 times of gross monthly emoluments in case of salaried employees/pension/ or two times of gross average annual income as per last 3 years I.T. Returns. For calculating your loan eligibility, bank will deduct any EMI currently being deducted from your gross monthly salary.

    Quote Originally Posted by chaosaddict View Post
    Thanks for sharing. This is indeed enlightening!
    Welcome.

    ----consecutive posts auto-merged-----

    loan_amortization_schedule.zip

    I am attaching an excel file. By using this file, you can understand the actual interest being charged for the loan issued.

    You can key in the loan amount, duration and interest rates and find out the EMI. I am confident that at least 50% of the guys would be astonished to see the actual EMI that works out for the interest rate quoted.

    It is an usual practise to quote a certain interest rate and then quote EMI which has no relevance to the quoted interest rate.

    Myth busting 1-0-1

    Advance EMI means the actual loan disbursed is less than the sanctioned loan. This is used to inflate the processing fee and/or to make you feel that your sanctioned loan amount is higher than it actually is.

    Processing Fee - This is a clear crap idea of fleecing customers for no valid reason. Why should you pay someone any fee if you would also be paying interest on loan? Try to negotiate ZERO processing fee.

    Prepayment Charges - Why should a finance institution penalise you for paying back their loan? This is used in the hope of securing their returns for longer duration. Go for a loan only if you have an option of paying as much extra amount as you wish whenever you wish. It is your money and if you have surplus, why can't you save interest?

    Flat Interest rate - Flat interest rate means the interest is charged on full loan amount irrespective of how much you have already paid. This was launched because companies wanted potential customers to feel as if they are getting bargain of the century. Would it not make sense if you were to pay interest only on amount you owe? Thumb rule is add about 80% to a flat interest rate to work out actual variable interest rate.
    Last edited by trustvishwas; 11-15-2013 at 06:42 PM.
    Never argue with an idiot. He will drag you down to his level and then beat you with experience.

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    Bank loans for used superbikes is possible - Bank loans for used superbikes

  6. #6
    Rusted Haroon's Avatar
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    Default Re: Bank loans for Used Superbikes is possible

    A big thanks for sharing such good news. As official superbike sales are warming up in cities & towns across the country, a lot of genuine biking enthusiasts will be looking at the option of picking up used bikes whose new values have dropped and are in a more affordable range.
    trustvishwas likes this.



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    Default Re: Bank loans for Used Superbikes is possible

    Not really for the used bike, but I got my new SBK loan done with Bank Of India only. Almost same experience of swift delivery. 2 days and I had the cheque in my hand... No processing fee, no prepayment penalty.. This was more than 2 years back..

  8. #8
    Rusted trustvishwas's Avatar
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    Default Re: Bank loans for Used Superbikes is possible

    Correction

    I had earlier posted interest rate of 10.25% reducing balance by mistake. It is actually 11.25% on daily reducing balance.
    Never argue with an idiot. He will drag you down to his level and then beat you with experience.

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    Bank loans for used superbikes is possible - Bank loans for used superbikes

  9. #9
    Rusted princesirohi's Avatar
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    Default Re: Bank loans for Used Superbikes is possible

    thanks for providing the information.

    when i went to BOI for CBR250 loan, they said they will open a saving bank account first. thats a must. now why is that required. obviously it will not be zero balance, so add the minimum balance required to the total repayment amount. and interest goes up- specially for smaller bike loans.

    Quote Originally Posted by trustvishwas View Post

    Processing Fee - This is a clear crap idea of fleecing customers for no valid reason. Why should you pay someone any fee if you would also be paying interest on loan? Try to negotiate ZERO processing fee.
    ....
    .
    i tried to negotiate this with bajaj finance, but failed.

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    Default Re: Bank loans for Used Superbikes is possible

    Hello guys

    Im going to purchase a duke390. Hdfc is ready to provide me loan. They are saying that, they will give me a intrest rate of 10.9. They also said that they reduce it further & will give best possible rate, which i doubt. Prosseing fee is 2.5. On the website it is saying that there is 50% off on processing fee & 2%discount on intrest rate. Im geting bit confuse what's the actual rate on intrest. Few of my friends are saying to go for idbi or pnb. One problem on myside is i maynot be able to produce it return of three years. Due to some problem i have filled 2010&11 at the same time. And i have yet not filled for 2012. as i'hv ac with hdfc they are not asking for any documents.

    One funny thing is hdfc is saying duke390 is superbike

    So can anyone please tell me how is idbi & pnb in terms of loan

    Sent from my GT-I9100 using xBhp Connect mobile app
    Last edited by coolmaverickguy; 11-22-2013 at 03:32 AM.
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