The demands and needs of our society have seen a sweeping change in the current times. We are gradually moving ahead from a dependent economy to a more liberated and established one. Similar trends have been applied to our lifestyles too and we are becoming comfortable with an opulent lifestyle. While cash cards have satisfied the necessity to live a life of a definite standard, the number of folks who are reliant on public transportation in India are declining little by little. No one likes to fix their lives around someone else's schedule or convenience.
Having our own two wheeler simplifies matter quite a lot. However, not everyone will have the resources to pay the entire price of the bike or two wheeler upfront and vehicle loans are the saviours here. Having seen this need, many banks and other financial institutions these days provide two wheeler loans to make it more reachable to the folks and help manage their financial commitments. Federal Bank is one such bank that caters to these needs. Federal Bank offers a two-wheeler loan that is a flexible banking product that suits the needs of people from all walks of life.
Also Read: Two Wheeler Insurance.
Federal Bank Two Wheeler Loan Interest Rates
The rates of interest for Federal Bank Two Wheeler Loans are fixed in nature. The rates for different segments of two wheelers can be summed up as follows:
|Type of loan scheme||Rate of Interest (% p.a.)|
|Two Wheeler Loans (under 500 cc)||17.00% p.a.|
|Super Bike Loans (500 cc and so on)||12.50% p.a.|
Features & Benefits of Federal Bank Two Wheeler Loan:
- Reduced rates of interest.
- Funding of up to the full ex-showroom price of the two-wheeler.
- Choice of a loan settlement tenure up to 84 months.
- Quick processing of the two wheeler loan.
- No veiled hidden fees.
- Free personal accident insurance up to Rs.10 lakh.
- No pre-closure charges are included.
- Income document scheme is not applied.
- Reimbursement will be made within 1 month from the day the two-wheeler was purchased.
Purpose of Loan:
Federal Bank Two Wheeler Loan can be availed for purchasing new two wheelers for personal use.
One can take up to 48 months to settle the entire loan.
If the borrower falls under the salaried category as per the bank’s policy, he/she can take up to 84 months to repay the loan.
Federal bank levies .50 percent of the sanctioned loan amount or INR 500 (whichever is more).
Two percent of overdue EMI if you delayed payment for more than a month.
Federal Bank Bike Loan Eligibility Criteria:
- The borrower should have a steady source of income. He/she could be salaried or self-employed.
- The minimum take home of the borrower, after payment of all EMIs, should be Rs.20,000. The requirement may be reduced for individuals residing in semi-urban or rural locations.
- The individual can choose to club one’s spouse’s income as well.
- In case one clubs agricultural or rental income, the minimum monthly income is required to be Rs.40,000.
Documentation Required for Federal Bank Two-Wheeler Loan:
- KYC Documents of the loan applicants such as ID proofs and residential proofs, and age proof.
- Your latest Passport Sized Photograph (along with that of the co-applicant if any)
- Proof of occupation or entrepreneurship.
- Income papers such as salary slips, bank statements, IT Return Papers.
- Business people also needs to audited balance sheet, P & L statements as well as tax paid challans in case of self-employed individuals.
- If you are a Non Resident Indian (NRIs), you need to submit employment certificate and embassy attested papers as well as two years NRI Account Statement.
- Certified passport certificate, ID card, work permit, and visa in case the applicant is a Non-Resident Indian (NRI).
- Property documents in case the loan amount is over Rs.25 lakh.
- Land tax receipt (latest) or document proof of own house