Axis Bank has introduced a special loan product offering to fund up to 95 per cent of the cost of a hi-end motorcycles. The loans being offered are for motorcycles with engine capacity of over 500 cc, and will attract interest of between 10 to 11 per cent per annum. While calculating the loan to value ratio, which has been capped at 95 per cent, and the bank will consider accessory funding along with the cost of the bike, a statement said.
Superbikes like Harley-Davidson and Triumph are truly iconic brands that many in India aspire to own. We are making this dream of our customers a possibility through our superbikes loan foray," said Rajiv Anand, Executive Director, Axis Bank.
HDFC Bank is still the market leader in providing finance schemes for superbikes of all brands. Both Triumph and Kawasaki have tie-ups with HDFC Bank. In the case of Triumph Motorcycles, HDFC offers loans up to 85 per cent in most cases, and in a few cases, particularly for HDFC bank account holders, even 100 per cent finance has been offered, a source in a Triumph dealership told CarandBike. HDFC loans on premium bikes attract interest rates of 10.5 per cent. HDFC also offers loans on Kawasaki bikes, offering between 85 - 95 per cent finance on the cost of bikes.
The leisure biking segment is expected to grow at 30 per cent per annum over the next three years on high consumer spending and increasing population of high net worth individuals. The trend of motorcycle riding groups and clubs, as well as adventure activities surrounding these luxury bikes further add to the popularity quotient of the segment. The average age of customers in this segment is now in the mid-30s, down from the age of early 40s a couple of years ago.
It's a growing segment of motorcycles, and observers feel the premium motorcycle segment will continue to grow. In FY 2017, motorcycles above 500 cc and between 1600 cc accounted for 13,355 unit sales in overall motorcycle sales in India. Motorcycles with engine capacity of between 500 - 800 cc, costing between Rs. 5 lakh to Rs. 15 lakh, accounted for over 80 per cent.
