Hero FinCorp, a subsidiary of the renowned Hero MotoCorp, is a prominent player in the world of vehicle financing in India. While closely associated with its parent company, it’s essential to distinguish between the two entities, as they stand separate on paper and legally. This article delves into the offerings of Hero FinCorp, shedding light on its financing practices and potential pitfalls for borrowers.
Understanding Hero FinCorp’s Offerings:
Hero FinCorp specializes in financing 2-wheeler vehicle loans, primarily those manufactured by Hero MotoCorp. Additionally, the company extends personal loyalty loans to existing customers, particularly those who have financed their 2-wheeler vehicles through Hero FinCorp. Although the company claims to offer various financial and insurance services on its website, it’s important to note that vehicle insurance is typically provided by different banks.
Easy Loans but with Consequences:
Even if your credit score is low, and you lack a stable income, Hero FinCorp may still provide you with a loan for purchasing a 2-wheeler vehicle from Hero MotoCorp. However, the catch is clear – failure to repay the EMIs or the loan could result in the repossession of your vehicle. Additionally, the insurance will be in the name of Hero FinCorp, not the borrower. To obtain a No Dues Certificate (NOC) and remove the Hire Purchase Agreement (HPA) from the vehicle’s Registration Certificate, a cumbersome process involving multiple visits to the RTO office is required.
Issues with Hero FinCorp Loans:
- High Interest Rates:
- Hero FinCorp is known for offering loans with high-interest rates, coupled with fixed EMIs and tenures. Borrowers should carefully consider the long-term financial implications.
- Hidden Fees:
- Borrowers may only discover hidden charges after the loan is sanctioned. Lack of transparency in fee structures can lead to unexpected financial burdens.
- Insurance and Deduction Reimbursement:
- Lack of upfront information about documentation fees and deductions on the reimbursement amount can catch borrowers off guard. Insurance applications without the borrower’s knowledge are concerning practices that need attention.
- Customer Care Support:
- Issues with customer care support have been reported, with representatives often claiming a lack of information before the loan is reimbursed. Communication gaps and redirection to email support can lead to frustration for borrowers seeking clarification.
While Hero FinCorp provides an avenue for financing 2-wheeler purchases, potential borrowers should be aware of the associated challenges. High-interest rates, hidden fees, insurance complications, and customer service issues are areas of concern that demand careful consideration. As with any financial decision, it is crucial for individuals to conduct thorough research and assess the long-term implications before opting for a loan from Hero FinCorp.
This article is based on publicly available information and customer reviews. Readers are strongly advised to conduct their own research and seek professional advice before making any financial decisions.