With more than a billion population, the two-wheeler manufacturing industry in India has seen extensive development in the past 10 years and continued to grow. Although two-wheelers are convenient and preferred means of transport, they are not affordable for a majority of the middle-class section of India to buy entirely out of their pocket. Hence two-wheeler loans from City Union Bank provide support to people who are looking to purchase these vehicles.
Features of Two-Wheeler Loan
1. The motive of loan:
The two-wheeler loan is only eligible for new two-wheelers, not for the used ones.
2. Permitted Loan Amount:
The maximum two-wheeler loan amount offered by City Union Bank is determined by calculating the applicant's salary for 10 months and Rs 35,000 is the upper limit.
Base Rate is 10.75%
Base Rate+7.00 = 17.75%
Hypothecation of the bike to be bought is kept as security or collateral with the bank.
5.Third Party Guarantee:
Along with the loan applicant, the spouse (or maybe someone else who fulfills the eligibility criteria as per the requirement may apply as co-applicant.
6. Repayment Period:
The applicant can repay the loan maximum in a period of 36 months through EMIs and the bank doesn't allow any moratorium period in this regard.
7. Two Wheeler Insurance:
A comprehensive insurance cover is to be acquired by the applicant at the price of the vehicle as per the loan clause.
8. Processing Fees:
The bank will impose a processing charge at 1% of the entire loan amount. However, the whole process is transparent as there are no hidden charges.
9. Loan Disbursement:
The approved loan amount will be credited directly to the seller.
Eligibility Criteria for City Union Bank Two-Wheeler Loan
1. The applicant must be at least 18 years and above.
2. The salaried individuals must have an income of at least Rs. 5,000 on a monthly basis.
3. Independent professionals and freelancers should have a net profit of Rs. 75,000 on an annual basis after all deductions, as per the IT Return reports.
4. The income of the partner will be considered if he/she applies as a co-borrower.
1. Photocopy of any of the ID Proof such as Driving License, Voters ID, Aadhaar Card, and Passport.
2. Photocopy of the address proof such as an Aadhaar Card/Rental or Lease Agreement/Ration Card.
3. Income Proof such as bank statements, salary slips, and IT Return reports.