Easy Financing for Superbikes
In India, the price of a luxury bike starts from Rs 5 lakhs and it can go up to Rs 35 lakhs or even more, depending on the model. Easy availability of finance from banks as well as NBFCs for high-end twowheelers encourages customers to take up bike loans. While 60 per cent to 65 per cent of the customers buy bikes on loan, some of them may go for a loan only to avoid questions from the tax authorities and not because they cannot afford it. Paying a huge amount of money upfront may end up catching attention. For banks, offering loans for high-end bikes is one way of getting high net-worth individuals (HNI) as customers. Strangely, many banks offer loans for luxury two-wheelers at rates lower than that for standard two-wheelers. However, the tenures may be longer due to high cost of the bike. In some cases, the bank may not have an off-the-shelf loan product but will tailor one to suit the buyer’s needs. After all, someone who can afford to buy a bike of more than Rs 5 lakhs is a potential high networth customer for the lender. The loan amounts are usually 70 per cent to 80 per cent of the bike’s cost, but can also go up to 90 per cent if the bank is happy with the customer’s profile. The market for high-end bikes in India is at a nascent stage, although it is growing. Harley-Davidson has tie-ups with some private banks. British superbike brand Triumph is financed by a few private banks under a tie-up. The Italian Ducati is another luxury bike that is now sold in India. However, only a small percentage of customers opt for loans for buying such superbikes. While a large section of the demand comes from Delhi and Mumbai, cities like Bengaluru, Ahmedabad and Chandigarh also have been excellent markets as a rich biking culture already exists there. There is also an increasing demand from the south of India, with Kochi, Chennai and Hyderabad leading the pack.