Taking a loan from any financial institution to fulfil one’s needs is expected. Many are familiar with the type of loans they can get from any financial institute. People don’t know the additional charges on bikes or the hidden charges they would need to pay while applying and closing the loan. Today, we would be discussing additional bike loan charges with which everyone should be acquainted.
Motorbike Loan Charges
Before you apply for a loan, you would need to search for the perfect institution for finance. You would be planning to check out various banking and non-banking financial companies to see which one suits the best for you and the different additional charges on Motorcycle or hidden charges they levy on the loan. But first, you should know what these TW loan charges. Let us discuss the hidden costs of two-wheeler loans, which will help you calculate the overall loan charges you need to pay.
Loan Processing Fees
Loan processing fees are the additional charges on Motorbike which an applicant has to pay for processing the loan, and the borrower gives an underwriting application for a loan. The loan processing fees are mostly non-refundable, and they have to be paid when the borrower applies for the loan. The loan processing fees vary in every financial institute. The reason for changing loan processing fees is that these bike loan charges are different in every state of India. , the loan processing fees are decided according to the state policies.
First, the applicant has to submit a two-wheeler loan application to the financial institute, and later they have to submit their documents as their proof of identity. Every financial institute would require you to submit a list of documents to process the loan. Address proof, identity proof, proof of income, etc., are some of the documents needed when applying for a loan. When submitting the forms, you would also need to pay small additional charges on bikes called documentation charges. Documentation charges are levied in every financial institution across India. And, just like the loan application charges, these loan charges are also varied from state to state. Hence, every financial institute will keep the hidden cost for documentation according to the state policies.
Loan Foreclosing Charges
Loan foreclosing charges are the additional charges on scrambler imposed on the loan when an applicant repays the loan amount in one payment. To repay the loan in instalments, or one single go, it depends on the applicant. It is all based on how much finance you have with you. The necessary TW loan charges for any loan foreclosing begins from 4%. The loan charges can be increased based on the kind of loan amount, and the scheme you have opted for.
Stamp duty is not just the regular additional charges on Motorcycle, but it is also an important one as the stamp duty is levied on the loan by none other than the State Government itself. Paying stamp duty is evidence for the loan, and it is valid for a time of six months. Stamp duty is also tax evidence that a property is bought by the buyer. An important note is that stamp duty should be paid in full amount, and without any delay. If a person fails to pay the due amount, a penalty is levied on their payment. If the payment is made on time, then the validity of six months is provided. There is a provision for the additional charges on TW of the stamp duty in the Constitution of India under Section 3 of the Indian Stamp Act, 1899. The reason behind paying the stamp duty is to boost the revenue of the local government alongside legalizing the documents.
No Objection Certificate
No Objection Certificate or No Due Certificate (NOC) is a legal document and proof that the borrower has paid the whole amount to the lender. Without the NOC, there is no other proof that you have paid the whole amount. No NOC can lead to some legal actions, and also it will affect your credit score, and you won’t get approval for another loan.
Why Shriram Finance?
Now, after going through the article above, you would have understood all the additional charges on Motorbike which an individual has to pay. So the best way to get a two-wheeler loan is from Shriram Finance. Shriram Finance is one of the leading and most-trusted non-banking financial institutes. Here, we point out the features and benefits of Shriram Finance that provide customers with a hassle-free service.
- Additional charges on two-wheeler at Shriram Finance are based on state guidelines.
- Some loan charges are levied in accordance with the scheme you opt for at Shriram Finance.
- Shriram Finance has over 2,875+ offices across India which are easily accessible.
- Shriram Finance has competitive interest rates which start from 11.5%p.a.
- The borrower can get up to 100%* financing on their on-road cost of the two-wheeler.
- The loan amount is disbursed 24 hours after the approval of the loan.
- Minimum documents are required for a quick and easy documentation process.
- Both employees and self-employed individuals can apply for the loan.
- Salaried individuals need only one year of work experience and a minimum salary of Rs. 12,000/per month.
- Customers can easily access their all loan transactions online from the customer portal of Shriram Finance.
Now that you know what the additional charges on bikes are, and what is the best resolution for getting a bike loan. To get the loan, all you need is to go on the website of Shriram Finance, apply for a two-wheeler loan, and the staff will get in touch with you right after you fill the application form online.
Not many are well aware of these hidden charges on a two-wheeler loan. But now, you are the one who is well acquainted with these Motorbike loan charges. You can easily calculate the amount you would need and know how the process would be like. So, get going and apply for a loan now to get your bucket-list fulfilled!