The main attraction of this low-cost finance for two-wheelers is it eliminates the need for hypothecation of the vehicle to the financier over the tenure of the loan.
L&T Finance, a subsidiary of L&T Finance Holdings, has come up with a two-wheeler loan for its customers. The two-wheeler loan, ‘Sabse Khaas Loan’, is a hassle-free loan with no hypothecation. This loan also comes with low-interest rates as compared to other offerings in the market, the company claims.
The main attraction of this low-cost finance for two-wheelers is it eliminates the need for hypothecation of the vehicle to the financier over the tenure of the loan. The borrowers, for instance, can choose from 3 different EMI tenures such as 6 months, 12 and 18 months. The interest rate ranges between 7.99 per cent and 8.99 per cent.
Currently, only when the entire loan amount is repaid, two-wheeler financiers transfer the title of the vehicle to the customer, which leads to additional paperwork and puts a financial burden on the customer. The loan by L&T Finance removes such charge on the vehicle, hence, saving time, effort and money of the borrower.
Sunil Prabhune, Chief Executive-Rural Finance & Group Head-Digital, IT and Analytics, at the launch of the loan, said: “Sabse Khaas Loan is our way to appreciate and reward borrowers who are financially responsible and spend their money wisely. Borrowers will not only receive hassle-free and quick disbursements of the loan but also get lower interest rates and save on fees.”
For LTFH’s two-wheeler finance business, algorithm-based credit decisions, paperless onboarding and fast turnaround time have been key differentiators. According to company data, L&T Finance Holdings, over the past two years, has helped in bridging the gap between the physical and digital experiences, approving nearly 95 per cent of the loans in less than 2 minutes, with minimal human intervention and documentation.