Best tips for a Superbike loan application


Planning to apply for a bank loan to buy a Superbike? Get a checklist from this article to know what all you need to be aware of before you submit a bank loan application for a Superbike in India.

Introduction

There are a lot of bike enthusiasts out there who dream of having a superbike like a Ducati or a Harley Davidson or a Suzuki Hayabusa.

Suzuki Hayabusa
[Image source: https://www.suzukimotorcycle.co.in/product/hayabusa]

It is not only the youth who have such aspirations, but also older people. Women bike riders, too, have taken up the happy notion of going on road trips on the sleek, mean machines and having their own niche superbike clubs. Banks in India are cashing in, offering these customers special loan schemes to purchase a superbike.

Before you check out the best offers from various banks in India, it is advisable to know that even if the banking institution says there are no "hidden" charges, you do need to read and be aware of all the fees & charges that are incorporated in the superbike loan finance scheme.



You might find this checklist useful –

Check list

First of all, there will be taxes for sure, be it a service tax or any kind of government tax, this dependent on the prevailing rate of that current fiscal year when you apply.
Secondly, there will be a Stamp duty charge as well.

Thirdly, a nominal documentation charge is also likely to be levied. Note that this will be separate from the processing fee of the application.

Fourthly, it is advisable to compare the Rate of Interest (ROI) of various banks before making a final decision of which bank to approach. The ROI could start at 10% and go as high as over 25%. This depends on the tenure of the loan and other factors.

The fifth aspect to keep in mind is that the ROI and the processing & documentation fees may change abruptly so do not necessarily go by what is mentioned at the official website. Find out directly from the bank itself the updated charges/fees/ROI.



Sixth on the checklist is to understand the various options for the mode of repayment of the loan. There are generally three:
  1. Standing Instruction: Known as SI, this means that you can give instructions to the bank to debit the EMI amount from your account with the bank. Naturally, for this you would need to be having an account with the bank, this being either a savings account or a salaried account or a current account.

  2. Electronic Clearing Service (ECS): You can have your EMI debited automatically at the end of the monthly cycle from an account in another bank.

  3. Post-Dated Cheques (PDCs): You can submit post-dated cheques of the EMI amount issued from another bank. For this mode of repayment, you will need to ensure that you do not delay in issuing PDCs regularly. The bank will let you know where you can deposit the PDCs.

Finally, do read all the fine print of loan agreement document!


Article by Vandana
Vandana is based in India with over 15 years experience as a freelance writer. Writing, no doubt, is her primary passion! Having learned the art of blogging from ISC, Vandana is enjoying the thrills of blogging, taking pleasure in sharing information & getting good pageviews at her various blogs.

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Comments

Author: Natarajan23 Jun 2018 Member Level: Diamond   Points : 4

A superbike is a dream for many to enjoy the pride of owning one, experiencing the thrill of zooming on one along the highway or a road trip.

These bikes are expensive and a word of caution is about the current price wars in which all the major nations are involved in. This means that India is set to increase the excise or import duty on imported bikes. Here one has to keep in mind two terms (CBU, CKD), one CBU, completely built-up unit, these are bikes that are imported as a whole. The proposed tariff would mean a possible increase in 50% of cost on some exclusive 800 cc models. The other term is CKD, completely knocked down unit that implies that most parts are imported but assembled in India
For instance, the most popular Harley-Davidson bikes in India are the Street-750 and Street Rod which come under CKD and hence an economical than the CBU counterparts. In general terms, a CBU bike or car for that matter would be 30% more expensive at the point of purchase than a CKD one.

I would also like to draw the attention of prospective bike owners to consider the bank that offers superbike loans with an additional top-up for accessories. I feel, when one purchase such a fast and expensive bike, one should also invest in safety gear like an one-piece leather bike suit, protective headgear, knee sliders etc. Lastly, if one intends to be a serious biker, it would make sense to have a bike theft insurance and a good health insurance that has a good accident over



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