Own a premium bike with a Super Bike Loan

Time to read: 6 mins | July 11th, 2018

Have you dreamt of owning a bike to take long road trips as well as navigate city traffic snarls easily?

There are more than a hundred reasons to own a bike; some of them are: saves time, no parking hassles, gives you the freedom to travel anywhere, does not drain you out, easy to maintain, fuel efficient, fun to ride, adds to your cool quotient, and much more!

Excited? Want to own a bike right away? 

Here’s an option to consider…

Unlike earlier times, where one needed to save money to buy a bike, today owning one of your choice is easy  –– irrespective of whether you earn a regular salary or are self-employed (businessman or professional).

Axis Bank offers a Super Bike Loan, a flexible, quick and cost-effective way to own your dream bike/two-wheeler. The Super Bike Loan is available at an attractive rate of interest and you can even avail of 8% additional funding on accessories invoiced at the time of delivery.

Who can apply?

• Salaried individuals
• Self-employed individuals
  

The minimum age required at the time of application for the loan is 21, and should not exceed 58 years at the end of the loan tenure. In addition, individuals need to be residing at the given address for a minimum 1 year and have been working for a minimum 2 years.

You can apply for Super Bike Loan with Axis Bank broadly in three ways:

• Visiting any Axis Bank Loan centre in person;

• By calling Axis Bank call centre numbers; at 1860 419 5555 or

• Applying online at www.axisbank.com

But applying online is by far the best, if you are comfortable doing it. The online application can be done from the comfort of your home, office, or wherever you are.

All you got to do is enter your name, e-mail id, mobile number, state, city, the captcha code, and accept the disclaimer policy before you clicking on the ‘Submit’ button.

Soon, you will receive a call from one of the Axis Bank representatives explaining the details about your Super Bike Loan. 

What are the documents required?

The following will be needed:

• Identity and address proof (viz. Aadhaar, Passport, Voter Id, PAN Card, Driving License, etc.)
• Age proof (viz. Aadhaar, Passport, PAN Card, Driving License, Birth Certificate, etc.)
• Office / business proof for self-employed individuals (viz. electricity bill, telephone bill, Shop & Establishment Certificate, SSI or MSME Registration Certificate,GST Registration Certificate, Current Account Statements, etc.)
• Income proof (viz. latest salary slip, Form 16, latest ITR)
• Latest three months bank statements

What is the maximum loan tenure?
The minimum loan tenure for a Super Bike Loan is 12 months, while the maximum is 48 months.

How much loan can one avail of?

You can borrow a maximum of 85% of the on-road value of the bike and as mentioned before, 8% additional funding on invoiced accessories at the time of delivery is available.

What will the bank assess before granting a loan?

While scrutinising your Super Bike Loan application, the bank will also assess the type of bike/two-wheeler you wish to buy, the loan tenure, the employment stability, and pre-existing Equated Monthly Instalments (EMIs) on outstanding loans to recognise your credit worthiness.

In addition, during the due diligence, the bank may also access your credit score to gauge your credit history. Note, if your credit score is high (750 and above), you stand a chance to bargain as regards interest rate and processing fee.

And if you are a select customer of Axis Bank who enjoys priority banking or Privee Banking status, a Super Bike Loan may be pre-approved for you.

Use an EMI calculator to know your debt obligation

To know how much the EMI will be for the Super Bike Loan, use the EMI calculator –– it is a great tool. All you have to do is enter the loan amount, interest rate, tenure, and processing fee, and will give the results: EMI, and indicate the total interest you would pay during the loan tenure. 

How can you repay your Super Bike Loan?

You can opt for either of these:

As mentioned earlier, both salaried and self-employed individuals can apply.

• Standing Instructions (can be used if you have a savings account, salary account, or current account with Axis Bank. Your EMI will be automatically debited from the account you specify.)

• National Automated Clearing House (NACH) or Electronic Clearing Service (ECS) can be used if you do not have an account with Axis Bank and would like your EMIs to be debited automatically at the end of the monthly cycle.
• You also have the option to provide Post-Dated Cheques (PDCs) from a non-Axis Bank account. But it is recommended to opt for Standing Instructions or NACH/ECS as they are faster and less prone to errors, frauds compared to PDCs.
  

Is there a security or collateral needed to opt for a Super Bike Loan?

No, your bike itself will be used as collateral and will be hypothecated. Hence, you cannot sell the bike until the loan is repaid in full and the bank issues a No Objection Certificate (NOC).

How to remove hypothecation once the Super Bike Loan is repaid in full?

To remove the hypothecation from the Registration Certificate (RC), the bank will provide you the following documents:

• No Objection Certificate (NOC)

• FORM 35 (Notice of termination of an agreement of hire-purchase/lease/hypothecation)
  

The documents need to be forwarded to the Regional Transport Office (RTO) and the general insurance company (for two-wheeler insurance) to take cognisance and remove the hypothecation.

To conclude…

There are host of benefits of taking a loan to purchase a bike instead of doing it outright with your own money:

• Provides quick access to ride your favourite bike/two-wheeler
• The loan application process for a bike loan is fairly simple
  
• The loan is sanctioned with an insurance cover
• Paying via EMIs eases the burden of paying at one go, you got to make a down payment
• You do not have to mortgage your existing assets; because the bike loan is a secured loan
• Your existing finances are not exhausted
• Investments assigned to other financial goals are not exhausted

With Axis Bank, you have the opportunity to own your favourite bike and ride it happily as you service the loan. 

Happy Banking!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.