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-   -   Axis Bank to offer 95% finance for Super bikes (including accessories) (https://www.team-bhp.com/forum/superbikes-imports/188450-axis-bank-offer-95-finance-super-bikes-including-accessories.html)

Axis Bank has launched a new loan scheme, which can be availed by customers buying bikes that have an engine capacity of 500cc and above. Under this scheme Axis bank will be offering a loan to value ratio of up to 95% of the bike's price, including the opted accessories.

This new product comes at a time when the leisure biking segment is expected to grow at 30%, over the next three years. Axis Bank is thus trying to take advantage of this trend and hire financing options for prospective customers who are wishing to enter the premium motorcycle segment. The bank has also studied that the average age of customers in this segment has now come down to the 30s, instead of the 40s mark a few years back. This has resulted in a spike in demand for financing options for premium motorcycles in India.

The Indian motorcycle industry is apparently seeing an increased interest in the 500cc+ segment. This segment is also seeing increased participation from manufacturers like Triumph, Ducati, Harley-Davidson and BMW Motorrad, which recently started its operations in the country. With financing options being available readily, the segment is expected to come in the scope of more customers, which could result in better sales figures in the future.

Makes financial sense for Axis Bank. Rs. 10 Lakh super bike customer is likely to be more credit worthy than Rs. 10 Lakh car customer.

YES, I have booked the Multistrada 950 this week and HDFC is ready to fund 95% of on road price at 10% interest!

This is excellent news, got this via a tweet from OverDrive. Also the 10% RoI sounds reasonable.

Regards

Just bought a Harley FXDB @ 9.2%, 100% finance + 60k accessories

Pardon my ignorance. How do you mean...

The assumption is based on the financial profile / demographics of a typical super bike customer. The following profile is likely to be an average, and obviously, not all super bike customers fit this profile

- 30 to 40 years age
- Stable job or income from business (otherwise wouldn't have considered a lifestyle vehicle)
- Higher than average net worth (a car is a necessity for 30 to 40 year old, but super bike is not. A 28 year old guy with Rs. 5 Lakh net worth might buy a Rs. 10 Lakh car, but super bike customer is likely to have a significantly higher net worth)

That's why it makes sense for banks to offer 100% financing for super bikes but not cars.

Thats a really nice deal! Which bank? Any additional processing charges? Any penalties for pre-closure? only Harley or other brands available as well in this scheme?

I had booked a Honda CBR650F in March 2017 but somehow other priorities happened and the motorcycle buying decision was been postponed. I had approached a few banks back then, the best deal I got was from Oriental Bank of Commerce. I was offered upto 90% loan for the CBR650F @ 9.2% daily reducing Rate of Interest. Also, no foreclosure penalties after 6 months from the loan disbursement date.

Any idea what is the RoI Axis Bank is offering and if it is Daily Reducing or not?

Financed via HDFC. Harley was offering finance via capital one & Yes Bank.

Yes Bank had a decent deal too. 6 years tenure with 9.9%, 90% finance + accessories.

Finally settled with HDFC despite pre-closure penalties. Don't intend to close loan in advance any way. The ROI & 100%+ finance was a deal breaker. I had saved up 40% fund as down payment which can now be put to better use.

I can get a loan for my 2 lac rupee 500CC "Superbike" Enfield, but not for my 300cc 4+ lac rupee Ninja

Am I reading this right?

You are reading it right, but Royal enfield will be excluded in the fine print :D

Jokes apart, they have very strict disbursement rules, my friend's Benelli GT was not getting funded since the date of manufacturing was over a year, and he was adamant on getting that particular bike as he had a mouthwatering deal on it. The bank guy did connect him to the triumph dealership to find if they had any old, unregistered bikes on offer.

Pramod

Real great deals. Hope more banks will follow. Need to break the ice of the dealership who are also acting as financers and RoI are higher than banks

Triumph has been offering 9.99 roi from hdfc, but they have a pre payment penalty clause.
There should be a further dip in the interest rates, Hopefully.

I am currently in the marketing for a Superbike loan. Bank of India offers Superbike Loan at 9.25% daily reducing rate. No foreclosure charges and part payment allowed to reduce tenure. Tenure up to 5 years allowed.

IDBI, HDFC, Yes Bank all offered 9.6% ROI however their processing fees and other hidden charges create a decent hike when compared to the quote received from BOI.

Axis on the other hand does not offer more than 4 years tenure in Superbike loan. Their ROI also was the highest between 10-11% (Can't recollect exact ROI).

So to keep it short, Nationalised Banks offer the best ROI followed by Private Banks followed lastly by NBFC's (Non Banking Financial Company)