What happens to my two-wheeler if I am unable to repay the loan?

If a two-wheeler loan is not repaid, the financial institution may take the following actions:

• Loan Default Notice: The financial institution will issue a default notice, informing the borrower of missed payments and the consequences of continued non-payment.
• Accrued Penalties: Additional charges, such as late fees and interest penalties, may be added to the outstanding loan amount.
• Repossession of the Two-Wheeler: If the loan remains unpaid, the financial institution has the right to repossess the two-wheeler, as it serves as collateral for the loan.
• Auction of the Vehicle: The repossessed vehicle may be auctioned off by the financial institution to recover the outstanding loan amount.
• Impact on Credit Score: Failure to repay the loan may impact the borrower's credit score, which could cause challenges when seeking future loans.