Your 2w loan rate is 36% not 18%.

[ranjan2001]

@ranjan2001
at a flat rate of 18% emi will be greater than at a reducing balance.

Yes true, but the reducing interest 18% emi when asked to be calculated to flat rate will come upto 7-8% flat rate.

Its a marketing gimmick as they know most people don't know head & tail of it & they cant calculate it easily, where as flat rate can easily be calculated.

 

[agnels]

I even talked to their branch manager who said that they give 2w loans at a flat rate of 18%

The point is they are giving a two wheeler loan at a flat rate of 18% and if you convert that to a reducing rate 18% becomes 28.2%. So most private sector banks advertise loans at 18% which is actually 28.2%. In simple words they are cheating the whole nation. Shouldn't they change the rate advertised as 28.2%

 

[praka123]

^and also beware of the "recovery agents"(goondas) of these new gen banks like ICICI(#1 fraud),HDFC,CPB(centurion) etc.if u failed to remit the monthly install expect the worst.

I sincerely advice you to get loan from some co-operative banks if such banks are there.

 

[ranjan2001]

The point is they are giving a two wheeler loan at a flat rate of 18% and if you convert that to a reducing rate 18% becomes 28.2%. So most private sector banks advertise loans at 18% which is actually 28.2%. In simple words they are cheating the whole nation. Shouldn't they change the rate advertised as 28.2%

No they are not cheating if they quote flat rate but they are fleecing the customers telling them reducing rates.

Its like they are saying the glass is filled with water which is true, what they are not saying is that the glass is filled only half with water.

If they tell u 18% flat then its fine, but do confirm always
flat rate of interest PA all inclusive (file charge, service tax etc etc)

 

[kumarmohit]

ICICI Sux, actually all private banks scuk big time. They just do fancy offices, fancy advertising and a lot of other fancy crap with nothing of substance excpet roughing up people.

 

[agnels]

But why should they charge at a flat rate of 18% when they charge all other loans ex. four wheeler loans at a reducing rate.

 

[Cyrus_the_virus]

Honestly, if you want to take the bike on the loan, it will be calculated on a flat rate. Stop dreaming that somebody is going to change this. if they quote 1% interest per year, it will become 2% on the total loan amount for 2 years and not the reducing amount. The bank is not cheating anyone. If you think they are, then don't take the loan from them, because no one is forcing it down your throat. Besides, the bank is never going to give you the loan, till you agree and sign for all the calculations. That is certainly not called cheating. Also, they tell you the exact amount you need to pay, your interest and your EMI. That is also not cheating.

Solution: You want to take a bike on a loan, then check banks calculation, if you are not satisfied, don't take the loan, nothing more simpler than that! If you still think they are cheating, then you are only letting them do so, coz they always tell you all the details and exact payments.

PS: Private banks and other laws in the country have their own problems. If you think something is misused, don't buy it, or report it!

But why should they charge at a flat rate of 18% when they charge all other loans ex. four wheeler loans at a reducing rate.

Because bikes loans are bike loans and car loans are car loans!