How You Can Buy Mahindra BE6 And XEV 9E For Rs. 39,000 And Rs. 45,000 EMIs: We Explain
Mahindra Automotive recently launched its all-new born electric SUVs, the BE 6 and XEV 9E, in India. The BE 6 starts at Rs 18.9 lakh, and the XEV 9E starts at Rs 21.9 lakh. Now, in order to lure in buyers, Mahindra Finance has launched a few interesting finance schemes. The monthly EMI for the BE 6 will be Rs 39,924, and Rs 45,450 for the XEV 9E. However, there are a few catches in these schemes, and today we will explain to you all the types of financing that Mahindra Finance is offering and which one will suit you.
What are the financing options offered by Mahindra Finance?
In total, there are three types of finance options available for buyers who want to finance the vehicle from Mahindra Finance. The first is the simple Vanilla finance, and then there are Bullet and Balloon finance schemes.
Vanilla finance scheme
First off, let’s start with the Vanilla finance scheme. Under this scheme, Mahindra will finance 100 percent of the invoice amount of the vehicle. The rest of the amount, including the road tax, insurance, and other costs, will be paid by the customer. As a result, there will be one constant monthly EMI.
Bullet finance scheme
The second finance scheme offered by Mahindra Finance is the Bullet scheme. Under this scheme, the customer can choose higher variants of the BE 6 and XEV 9E and get a fixed advertised monthly EMI. However, at the end of every year of the loan tenure, one additional fixed payment has to be made.
Balloon finance
Lastly, Mahindra Finance is also offering a Balloon finance scheme. In this scheme, the buyer can again choose a higher variant and pay the advertised monthly EMI. However, at the end of the tenure, the buyer will have to pay a lump sum balloon amount. It has to be noted that the EMI prior to the final year of the tenure will remain the same throughout the course of finance.
Mahindra BE 6 financing options
Vanilla scheme
Now that you have understood the difference between the three financing schemes, here’s what you’ll have to pay for the BE 6. First off, in the Vanilla scheme, the company has advertised the base variant, which has an ex-showroom price of Rs 18.9 lakh. For this, the company will offer 100 percent finance of the invoice amount. The EMI will be Rs 39,224 for five years.
At the end of the tenure, you’ll have to pay nothing extra, and you’ll own the car. This scheme is for those people who want a simple, no-fuss EMI that will be paid every month and, at the end of the loan tenure, do not want to pay anything extra. The only drawback is that customers will have to get the base model if they want to pay the advertised EMI of Rs 39,224.
Bullet scheme
Then there is the Bullet scheme, and under this, you can choose the higher Pack 3 variant. Mahindra Finance will provide financing for Rs 24.21 lakh. The EMI for this scheme will be the same as the Vanilla scheme—Rs 39,224. However, the catch is that at the end of every year or any time during each year of the tenure, the customer will have to pay an additional bullet payment of Rs 94,300.
The total tenure will be six years for the Bullet scheme, and the down payment will be Rs 2.69 lakh. Now, if you are someone who wants to buy the higher-spec variant of the BE 6 but wants to pay the advertised EMI of Rs 39,224, then you can choose this scheme and pay an additional bullet payment every year.
Balloon scheme
Lastly, in the Balloon scheme, the finance amount and the EMI are the same as in the Bullet scheme. However, in this scheme, instead of paying yearly bullet payments of Rs 94,300, you’ll have to pay Rs 4,57,500 at the end of the tenure, which is six years. This scheme is for those individuals who expect a significant income increase by the end of their loan tenure.
Mahindra XEV 9E financing options
Vanilla scheme
Coming to the financing options for the XEV 9E, in the Vanilla scheme, the customer can opt for the base-spec variant of the XEV 9E to get the advertised EMI of Rs 45,450. The loan tenure will be five years, and there will be no additional payments except for the fixed EMI during the loan tenure.
Bullet scheme
As for the Bullet scheme, the customer will be able to choose the more expensive variant of the XEV 9E and pay the same EMI of Rs 45,450. The loan tenure, however, will be six years, and there will be additional bullet payments every year of Rs 95,600 for the tenure of the loan. Also, there will be a down payment of Rs 3.05 lakh.
Balloon scheme
The Balloon scheme for the XEV 9E will have the same monthly EMI of Rs 45,450 and a down payment of Rs 2.69 lakh. However, at the end of the sixth year, the customer will have to pay Rs 4,27,500 as a single balloon payment. This reduces the overall stress of payment during the tenure of the loan.
Rate of interest for all schemes
The rate of interest for all the schemes will be 8.99 percent from Mahindra Finance. However, it has to be noted that this is a flat rate of interest. Generally, automakers offer a flat rate of interest, but there is also a reducing rate of interest, which is offered by banks. The difference is that flat rates of interest increase the total interest as they are calculated on the total principal amount.
However, in a reducing rate of interest, the interest is calculated on the remaining principal amount. So, a general rule of thumb is that flat rates of interest are 1.8 to 2 times the rate of reducing interest. Now, which one will suit you will have to be decided by you.