What Is A Three Wheeler Loan?

By Author: Neha Sharma
Total Articles: 170
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Financing for commercial vehicles have become increasingly important and popular over the years as more and more applicants with limited finance capabilities, are choosing to take advantage of available benefits offered by leading lenders in the country.

In this segment, three wheeler finance occupies a very important place with sales skyrocketing, particularly in major cities, as population growth has directly influenced the need for growth in modes of transport for the common man, especially in the absence of adequate public transport systems. This factor has energized banks and other prominent lenders to involve in the three wheeler segment which majorly includes auto rickshaws and goods vehicles to ply on congested city roads.

In the bargain, both, banks and NBFCs have come forward with attractive packages which ensure minimum documentation, fast approvals, speedy processing’s, and above all, very affordable rates of interest. It may be mentioned here that, during festivals, three wheeler loans, in a bid to lure customers, often include attractive gifts, which may even include free insurance coverage. Non-requirement ...
... of securities has only added to customer comfort and an increase in ownership among the low-income category.

Though some banks are offering finance up to 90% and more, with loan tenures going up to 48 months, it will be advisable to choose the one that covers the widest range of three wheelers, and with flexible repayment options. Loan processing charges are generally a small percentage of the loan amount and may vary between different lenders, and so may be the loan sanction time, though this is often speedy and hassle-free. Stamp duties are levied where necessary.

The minimum age for an applicant is 21 years, which has to be supported by a relevant document. The other documents required for 3 wheeler loan are those of proofs of identity, address and signature. As proof of identity, a Passport copy, PAN card, Voter's ID card, and driving licence are necessary, and may also include a notarized self-affidavit with a photograph of the customer. For proof of address, Ration card, Aadhaar card, photocopy of bank passbook with photograph of customer duly attested by bank, and even rental agreements, gas connections and telephone bills suffice, though a minimum residential stability is taken into account. Driving licence or PAN card may be submitted for the purpose of signature proof. Apart from these, certain requirements of the bank may necessitate furnishing of income documents of the customer.

EMI or Equated Monthly Instalment, by way of fixed monthly instalments, makes it easier to pay off a three wheeler loan over a period of time. This can be through ECS or taken care of by the customer by handing out a set of post-dated cheques, but due importance should be given to ensure that cheques do not bounce as that may attract charges, though, in such cases, a trusted brand with apparently higher rates of interest compared to smaller players, will take necessary measures to save the customer any harassment or disadvantage. Overdue EMIs may lead to payment of an interest. Instalments can be paid online too, where official websites may be accessed to check accounts when necessary. Lastly, it is important too, to have insurance coverage throughout the loan period, especially for accident and theft.

Author bio:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about the 3 wheeler loan. Through her work, she explains the in detail about the same.