Global Market Research Company US India Two Wheeler Loan Market, Forecast and Opport | Page 8

Product Overview
Two wheeler loan is a kind of loan offering where banks, NBFCs and other financial institutions provide finance for the
purchase of a new and used motorbikes, scooters and other two wheelers. Two wheeler loans by Indian banks and NBFCs are
provided up to maximum of 85% - 90% of the value of the two wheeler vehicle. Two wheeler loans are repaid through
Equated Monthly Payment or Instalments (EMIs) spread over a certain tenure.
Due to the increasing aspirations of youth and teenagers in India, the demand for two wheeler loans for purchasing
superbikes, racer bikes, and other high end bikes in India is rising at a rapid rate. Moreover, customers from any working age
group can buy a two wheeler by paying a minimum down payment amount and the remaining in form of EMIs.
Two wheeler loan issuing companies provide various benefits such as flexible
tenure and easy of payment facility for up to 5 years to the borrower, which
doesn’t effect borrower’s monthly budget, spot loan sanction facility which save
borrower’s time and effort, insurance cover for both vehicles and owner as well
as accidental cover for buyer as per Government of India’s Motor Vehicle Act,
etc.
Usually, loan issuing companies charge additional fees including loan processing
fees, late payment fees, foreclosure charges and other fees (documentation
charge, cancelation charge, stamp duty, etc.) on account of documentation and
usage of legal services for confirming the authenticity of the vehicle documents,
which incurs additional costs to the loan provider.
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