Charges Involved In A Two Wheeler Loan

Whenever you make purchases you always check the bill to have a look at what you are paying for in that bill everything is included. Similarly, when you are going for the loan application you should always have proper analysis and calculation because it can save you for unplanned expenses too for which your pocket doesn’t all enough. Many legal and illegal charges are involved during the purchase of a vehicle on and also with the two-wheeler loan but it is your duty to have a look at those agreements and expense slip.

Two-wheeler Loan Charges

Interest Rate Charges

The lenders offer a two-wheeler loan interest rate at minimal cost so everyone can afford the service. Since the demands for two-wheelers are high if you compare with any other transport the banks are keen to provide you with the service. The interest rate ranges from 12% to 27% so your monthly expense will be less as well.

Processing Fee Charges

Most of the lenders will charge you a processing fee because it gives assurance that you are ready to buy the product with the agreement. Since it is a 1-time charge then you don’t have to pay it again and again. You can continue with EMI payment after this 1 time extra expense. The charges range is 1 to 3% on your purchase amount.

With having a great reputation for two-wheeler loan providing service the Federal Bank two wheeler loan is chosen by many users.

Taxes

Taxes play an important role in running a country’s economy so here you have to pay tax as well. Depending on the individual if he is using the vehicle for personal use or the business the taxes can be deductible and non-deductible.

Prepayment Charges

After 6 months or 12 months, the borrower chooses to pay off the loan amount at the 1-time expense but lenders expect their customer to stay longer so that they charge on prepayment.

Hidden charges

There are many NBFCs who advertise the lowest cost but when it comes to purchasing the service they end up adding extra expenses in agreement just to take care of that you can make calculations to save yourself from unwanted expenses.

The charges may be high but they can harm your desire to buy a new vehicle if you are not having income sources. This is the reason people purchase low-cost vehicles mostly through a two-wheeler loan so they can check if there is not any fraud involved in it. If the financer can build trust with its trustful work then he may find more customers to purchase bikes on a loan basis.

Since the charges debt amount is not that high if you choose for a longer tenure then those 12 to 60 months will divide share between each other.

Also read this: How to get an Instant gold/personal loan approval.