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5 Things You Must Know About Three Wheeler Loans
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"Three wheelers are a common mode of transport in many cities. Seeing these black and yellow three wheelers or autos in Mumbai or yellow and green coloured autos in other metros is a very common sight. Just as banks give loans to acquire two wheelers and cars, they also lend finance to acquire three wheelers.
A person wanting to buy a three wheeler can get a 3 wheeler loan from different banks. Here are some things you need to know about three wheeler finance.
1. Loan amount:
Some lenders sanction the loan amount up to 90% of the value of the vehicle. Some non banking financial companies have different loan to value ratios for different modles of three wheelers. It is best to check the finance that a lender will give before applying for the loan.
2. Documents required:
The documents required for three wheeler loan are:
• Proof of identity (PAN card, Passport, Voter ID, Drivers license, Aadhar card, Self affidavit with photograph of customer and signature which has been notarised, Photocopy of bank passbook with name of customer and address which has been attested by the bank)
• Address proof (Passport, Voter ID, Drivers License, Aadhar Card, Electricity bill, Telephone bill, Gas bill, Ration card, Property tax documents, Home loan documents)
• Signature proof (Drivers License, PAN card, Passport)
• Income proof (Income tax returns for the previous 3 years, bank account statements for the past 6 months)
• Cancelled cheques
• Passport size photographs
3. Interest rate, other charges and flexible repayment tenure:
One important thing to note is that the repayment tenure of a 3 wheeler loan ranges between 12 months to 48 months. Depending on the financial situation of the customer, the repayment period can be decided. Some lenders do not allow any prepayment while others have prepayment charges that are specified. It is best to get these issues clarified before the loan is sanctioned.
The interest rate on such loans depends on the three wheeler that is purchased and the geography of the customer. Most non banking financial companies that offer three wheeler finance make customized loan agreements for the loan applicant. Lenders charge for overdue payments, loan processing fees and other charges just like other standard loans. It is important to get these charges clarified from the lender as well.
The three wheeler loan is given to people between the age of 21 years to 60 years depending on the lender. These loans are also given to Indian citizens and businesses.
Most lenders insist on taking comprehensive auto insurance while the loan is being serviced. Only third party liability insurance is not enough. "
Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about three-wheeler loan. Through her work, she has listed facts about the same
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