A TW being the perfect vehicle for Indian roads and traffic, is very much in demand across the country. It is also a very affordable vehicle for the average Indian and can easily be financed with loans on very manageable terms. Shriram City is one of the top bike loan providers in India, with tailor-made financing options and affordable interest rates. One can easily finance their bike purchase with Shriram’s customizable loan options.
If you’re considering a TW purchase, then the following factors can help you decide whether to take the plunge:
If you have a limited parking space, then a bike is the easiest fit.
Once you have zeroed in on the right motorcycle, the next step is to get the purchase financed, and this is where a good lender comes into the picture.
If you find that you don’t have enough money for the down payment needed to buy a TW, you can opt for a financing option like a loan. It’s more advantageous than borrowing from friends and relatives or informal lenders, as it will be regulated and have a lower lending rate.
The loan application process has been simplified greatly now and can be easily done online. All the information is mentioned upfront so that you can prepare all the requisite documents and start the process.
You can opt for either a secured loan where you will be provided the loan against some collateral - a security that the bank will seize if you fail to repay; or an unsecured loan where you don’t need collateral. Choosing a secured loan is a better option generally, as you can give gold, jewelry, or the bike itself as collateral, the latter being the most common option these days. The bank rates are also lesser for secured loans.
When you are applying for a bike loan, you have to choose the loan amount to be borrowed. You can then choose a loan tenure that is the period you will take to repay the loan. You will then be informed of your bank rate after verifying your eligibility. Conversely, you can shorten your tenure by choosing the bank rate accordingly.
The financier generally checks your credit history, financial position, and ability to repay when they design your repayment schedule. At Shriram City Union Finance, the bike itself serves as security, and no additional security is needed.
Shriram City charges very competitive interest rates on bike loans, starting at 11.5%. The exact rate is based on your loan principal, that is, the amount you want to borrow and the repayment tenure, as well as your ability to pay. So the higher your principal or the lower your eligibility conditions, the higher the interest rate can be.
The EMI (easy monthly installment) to be paid every month will include the interest plus other charges if applicable. The bike loan rate is set based on your application details.
For an easy example, suppose you want a loan of Rs 1,00,000, and your bank rate has been set as 12% with a tenure of 30 months. Then the total interest to be paid would be Rs 16,244, and your EMI may be about Rs 3,875. But if you want a shorter tenure of 24 months, then your EMI will be Rs 4,707, and the interest amount will be Rs 12,976. The interest in this second shorter tenure is lower.
If you want a smaller loan amount, the interest will also decrease. If your prime rate is 13% for a loan amount of Rs 75,000 with a 24 month tenure, then your total interest will be Rs 10,575.
Therefore, to get an idea of how much EMI you can afford, you can use the simple bike loan interest calculator from Shriram City. Based on the estimate, you can then decide what the right loan amount to apply would be.
After your loan approval is processed, you can get to know the exact interest you have to pay and your EMI.
Some people have concerns about the interest calculation process and how the Shriram City interest rate on bike loans can vary with their profile and other details. Following are some clarifications:
The bike lending rate also depends on the bike category and price. As mentioned before, the amount desired and the ability for the down payment will be considered.
Shriram City Union’s affordable bike loan rates and good customer service have made it one of the most popular financiers. Even during the COVID-19 pandemic, Shriram reported disbursement of loans to more than 1 lakh bike owners in October and November 2020.
To get started with the process, just fill up the application form here, and your loan approval will begin.