The State Bank of Patiala is an associate bank of the State Bank group, was founded in 1917, by the Maharaja of Patiala. It was incorporated with the aim of promoting the industry, trade, and agricultural growth. The bank currently operates with a widespread network of over 1300 branches located across India in states like Punjab, Himachal Pradesh, Gujarat, Jammu & Kashmir, Chandigarh Haryana, Rajasthan, and Delhi.
Among the entire product range offered by the State Bank of Patiala such as investments, savings, loans, insurance, one of the most popular products is the two-wheeler loan. These loans provide a range of features to customers who are seeking financial assistance for the purchase of two-wheelers.
Amount of Loan:
In the two-wheeler loan from the State Bank of Patiala, customers can either avail loan amounts 18 times higher than their net monthly income or 1.5 times the net income on an annual basis or 90% of the on-road cost of the chosen vehicle, whichever the number is less.
The tenure of loan:
The Two-Wheeler loan from State Bank of Patiala can be availed for a maximum tenure of five years.
Rates of Interest:
To further assist the customers in buying a preferred two-wheeler, the two-wheeler loans from State Bank of Patiala provides dual interest rate plan. Either the applicant may opt for a floating interest plan where the rate of interest fluctuates as per the market conditions, offering an opportunity to the borrower of taking advantage of the same. The applicant can also opt for a fixed rate plan where the rate of interest remains fixed throughout.
The State Bank of Patiala Two Wheeler Loans charges a nominal processing fee at the rate of 1.22% of the loan amount. The least processing fee chargeable is Rs 255 while the maximum processing fee charged by the bank shall not exceed the amount of Rs 510.
For the borrowers who are non-agriculturist, the loan amount must be repaid in EMIs over a maximum tenure of 5 years. The EMI repayments of agriculturist borrowers are for a maximum tenure of 5 years. However, in the latter case, the schedule of EMI repayment will be on a yearly, bi-yearly, quarterly, monthly basis depending on the generation of the variable income which is earned on the harvest of crops or other related agricultural activities.
The Two-Wheeler Loans from State Bank of Patiala have been among the most popular across India for various reasons, one of which is the minimum fee and charges imposed by the bank. The bank does not levy any tax for the loan application or when the customer opts for pre-payment before the end of maturity. However, in case of delayed payment of EMI, where the amount to be repaid exceeds the duration of a month, the bank shall impose a penalty at the rate of 2% (along with the rate of interest applicable at the time) on the entire amount of loan. Along with this, the bank may also levy a penalty fee for every bounced cheque, over the enhanced interest rate.
The State Bank of Patiala offers attractive rates of interest to its customers who are wishing to purchase two-wheelers. The bank provides dual interest rate options such as fixed interest rate plan and a floating interest rate plan. Under its Floating Interest Plan, the bank levies interest at the rate of 15.90%, which is 6.25% above the Base Rate. For the Fixed Interest Plan, the bank levies interest at the rate of 16.15%, which is 6.50% above the applicable Base Rate.
Q1. Is there any application fee associated with the Two Wheeler Loan from State Bank of Patiala?
No, the applicant doesn't need to pay any fee for an application of a Two-Wheeler Loan from the State Bank of Patiala.
Q2. Does the Two Wheeler Loan from SBP carry any foreclosure fee?
No, the applicant doesn't have to pay any foreclosure fee to pre-close the two-wheeler loan.