Long gone are those days when the basic necessities of an individual were food, clothing and shelter only. To survive and compete in this everyday world some more things are counted as basic necessities like television, mobile phone, internet and last but not the least a vehicle. Owing to the increasing standard of living, lack of patience and time and unavailability of public transport, this day’s individual is bound to buy a vehicle for day to day travel. In this fast paced life, a person cannot afford to waste time, it demands having a vehicle.

With the high rising price of cars and motorcycles many banks providing motor loans come as a breath of relief.

Two-Wheeler Loans

HDFC Bank Two Wheeler Loan
● 2% lower rate and 50% lower processing fees for A/c holders.
●Flexible repayment tenure ranging from 12 months to 48 months for Two Wheeler Loan scheme and up to 60 months for Super Bike Two Wheeler Loan.
●Maximum loan processing fee- 3% of loan amount.
●Annual average internal rate of return: 12.04% for Super Bike Two Wheeler Loan scheme and 23.64% for Two Wheeler Loan scheme.
●100% financing.

ICICI Bank Two Wheeler Loan
●Processing fee of 2.5% of loan amount or ₹ 2,500 whichever is greater.
●Interest rate varies from 11% to 26.03%.
●Full prepayment charges: 5% on principal outstanding or interest outstanding for unexpired period of loan (whichever is lower).
●Part prepayment of loan is not allowed.
●100% financing.

TATA Capital Advantage Two Wheeler Loan
●Repayment tenure is up to 5 years.
●Maximum amount that can be borrowed is ₹ 1,50,000.
●Special reduced rate of interest.
●Up to 95% funding of the on-road price.

Four Wheeler Loans

SBI New Car Loan Scheme
●No prepayment penalty or foreclosure charges.
●Maximum repayment charges is up to 7 years.
●85% financing of ‘on-road price’.
●Interest rate: 9.7% p.a. For men and 9.65% for women.
●Processing fee: ₹ 500 + Service Tax.

HDFC Bank New Car Loans
●Fast and hassle free loan processing.
●Up to 100% financing.
●Fixed interest rates. Range varies from 9.45% to 11.25%.
●Non-refundable processing fee ranges from ₹ 2825 for loans up to ₹ 2.5 lacs to ₹ 5150 for loans exceeding ₹ 10 lacs.
●Foreclosure charges: 6% of principal outstanding within 1 year, 5% within 13-24 months and 3% post 24 months.
●Late payment penalty: 2% per month.

Union Bank of India Car Loan: Union Miles
●You can avail a maximum quantum loan of ₹ 125 lacs for a four wheeler.
●Margin: 15% of on-road price.
●Processing fee of 0.5% of the loan amount.
●Processing fee of 0.25% of the loan amount for account holders.
●There is no prepayment penalty.
●2% penalty on the average balance of the preceding 12 months is levied if the loan is transferred to any other bank.
●Maximum repayment tenure is up to 7 years.
●Interest rate of 9.95%.

ICICI Bank Car Loan
●Car loans up to 100% ex-showroom price of the car.
●Repayment tenure of up to 7 years.
●Interest rates on new cars: varies from 9.33% to 17.34% and on used cars: varies from 11% to 18.26%.
●Non-refundable processing fee ranges from ₹ 2500 for loans up to ₹ 2.5 lacs to ₹ 5000 for loans exceeding ₹ 10 lacs.
●Full prepayment charges: 5% on principal outstanding or interest outstanding for unexpired period of loan (whichever is lower).

Above mentioned are some of the popular loan providers in this category. Applicants need to analyse all the necessary factors and thus choose the best suited option for them.