The premium segment of two-wheelers is rapidly gaining popularity in the Indian vehicles' market. Bikes like KTM Duke and TVS Apache have lately become a common sighting on the city streets. Even top-class brands such as Triumph, Harley-Davidson and Ducati have entered the Indian market and are successfully selling their high-end models. Premium bikes and superbikes are a huge hit among youngsters who have a knack for speed and thrill. These bikes have a strong build, excellent features, efficient fuel economy, amazing riding comfort and deliver extremely high performance. However, premium facilities come at a premium price. Hence it goes without saying that these bikes are highly expensive.
Click on the button below to proceed to choose a bank, and get to know about the loans available at the cheapest interest rates.
A premium bike loan finances you to purchase an expensive bike in an easy, light-on-the-pocket and hassle-free way. These loans generally offer a longer tenure, favorable terms, affordable repayment options and better interest rates over regular two-wheeler loans. The loan can gradually be paid-off in monthly installments over a specified period.
To paint a clear picture of the superiority of these bikes, let me tell you that the average Indian rides a bike in a lower segment, usually priced well within 1 lakh. The premium bikes typically are priced over 1 lakh and the superbikes cost more than 5 lakh. Most financial institutions operating in India offer two-wheeler loans for the average Indian bikes. With the rise in demand for premium bikes, banks have also shown interest in riding the bandwagon and have thus designed specific schemes catering to the premium bikes’ market. Lenders have started offering superbike loans as well, which not only finance more than 80% of the bike's price but also cover the purchase of accessories.
HDFC Bank offers a special two-wheeler loan scheme by the name of “Super Bike Loan” which offers to fund of up to 85% of the bike’s cost. A buyer with a good credit history and income profile can also qualify for 90% funding. It provides additional funding of up to Rs.2 lakh for bike accessories. This scheme has an interest rate of 12.9%, which is much lower than some other two-wheeler loan schemes. Axis Bank, ICICI Bank, SBI, YES Bank, etc. also offer similar schemes.
Availing a premium bike loan involves a simple procedure. You could either apply directly through the lender's website or rely upon the bike's showroom to align you with the banks or NBFCs that they are tied up with. You must meet the eligibility criteria and submit the corresponding documents. Apart from the regular documents such as age proof, identity proof and address proof, an applicant must be a resident Indian, furnish a valid two-wheeler driving license and prove himself worthy of credit with a clean credit history. You must carefully choose the lender who provides the best interest rates, a flexible mode of repayments and a feasible tenure of the loan. You must also know that by taking a vehicle loan, you are essentially pledging an asset (the bike, in this case) as collateral. Henceforth, all you need to do is pay the EMIs every month, without fail.
If you're a premium or superbike aspirant but you do not want your savings to wane all at once, you could consider getting yourself a premium bike loan. This easy financing scheme is a great alternative to a one-time lump sum expense. So, go ahead and buy your dream bike!