Indian Overseas Bank Two Wheleer Loan FAQs
Two-Wheeler Loan has made your ride easier. Now you can minimize your dependency on public transport. Banks offer the best Two-Wheeler loan schemes and you can repay the loan through ECS, Standing Instructions or post-dated cheques with easy EMIs.
What are different Fees and Charges Applicable on Two wheeler Loans?
Fees and Charges Applicable on Two wheeler Loans are:
- Loan Processing Charges
- EMI Late payment penalty
- Prepayment Fees
- Loan cancellation charges
- No Due Certificate
- No Objection Certificate (NOC)
- Charges for Conversion
- Administrative Fee
- Cheque Bounce / EMI return charges
- Loan Rebooking Charges
- Legal, Repossession & Incidental charges
If I have enough money to buy a two-wheeler, should I avail the loan then too?
Yes, you should avail the loan even if you have enough money with you. The reason is you don't have to spend your money in lumpsum and you can invest that money in better options like mutual funds, banks FDs, etc. Further, two-wheeler loans are available in very attractive and competitive interest rates in the market.
What is the maximum repayment period for a two-wheeler loan?
The two-wheeler loans offered by banks are available for a period ranging from 3 years to 5 years. This period also varies on the basis of purchase of new two-wheeler or old two-wheeler.
What is secured two-wheeler loan?
If the loan is taken against a security or collateral like home, flat, debentures, land, etc., it is called secured two-wheeler loan. This type of loan is offered on very low rates as the risk of loan repayment is reduced.
What is unsecured two-wheeler loan?
If the loan is taken without any collateral or security, it is called unsecured two-wheeler loan. As the loan repayment risk is high for banks, they offer this loan on higher interest rates.
What is the benefit of a good credit score?
If you have a good credit score then the loan will be offered at the most competitive interest rates and other lenient terms.
How much will be the processing time?
It generally takes about 1-7 working days for processing the loan and getting it sanctioned after submission of all the required documents.
What are the different stages involved in availing a two-wheeler loan?
There are 4 stages involved in availing a two-wheeler loan, which are:
- Submitting a Loan Application
- Processing of application
- Approval of the loan
- Disbursement of loan amount
What is the maximum amount of two-wheeler finance available?
It varies from bank to bank. Some banks provide loans up to 100% for their account holders for some specific models.
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