Federal Bank customers can buy a two-wheeler on EMI (equated monthly installments) using their debit cards.The bank customers can book their two-wheeler by paying Re 1, the lender said in a statement.
The offer will be applicable at select showrooms of Hero MotoCorp, Honda Motorcycle, and TVS Motor across the country.Borrowers can choose a repayment period of 3 or 6 or 9 or 12 months, the bank added.
Customers can check their eligibility for EMI by sending an SMS in the format DC — space — EMI to 5676762 or giving a missed call to 7812900900.
Unlike conventional two-wheeler loans, hypothecation in favor of the Bank is not required for vehicles purchased on debit card EMI, the bank further mentioned.
The interest rate charged by the bank on two-wheeler loans is 17% for bikes below 500CC engine.
Those who purchase two-wheeler from select Honda Motorcycle showrooms availing EMI on debit cards from Federal Bank will also get a cashback of 5% as a festival offer.
The Bank offers EMI on debit cards for the purchase of consumer durables at over 36,000 stores across India.The Bank has recently started offering EMI for purchases on e-commerce portals Amazon and Flipkart too..