Whenever you plan to apply for a two-wheeler loan, you have to consider the fees and charges associated with it. You cannot ignore these charges. If you look at the real cost of the loan, you will not find the right idea about your loan expenses. With interest rate, you need to compare fees and charges for each loan too. This will help you choose the right bike loan according to your preferences and requirements. Let us take a look at some of the common fees and fees that you will need to pay for your bike loan:
1. Processing fees –
Processing fee is charged for processing the request for loan and it is mandatory for most banks. They, too, are generally calculated in the percentage of the total loan amount. It is also necessary to note that this fee is non-refundable under any conditions. The amount charged varies from bank to bank but ignoring this number often allows people to pay more for their loans.
2. Prepayment fees –
It is alleged under the circumstances where people have been able to pay the payment beforehand and sometimes even pay the remaining loan amount first. For bike loans, this charge is usually very low and sometimes is also non-existent.
3. Late-payment fees –
As the name suggests, this fee can be avoided easily, with little planning. The borrower is generally charged when the due date for loan repayment crosses, usually a real consequence of financial crisis or lack of funds. However, banks charge fees regardless of circumstances.
4. Charges for conversion –
This fee is charged if you want to change your two-wheeler loan from a floating rate calculation to a fixed rate or vice versa. It is essentially a fee for switching, depending on your needs. In other words, it is a resilience fee.
5. Copy of an account statement –
Sometimes people might need a statement for their current statement for loans. Although most banks do not charge you to get a copy of the same, there may be some banks that can charge a nominal fee for the same hard copy.
6. Administrative fee –
It is often a very cheat name for this fee because it is often confused with the processing charge. This charge takes care of the administrative cost of the bank to process your loan, which is not part of the processing fee.