Bikes are cheap, compact, convenient, and at the same time stylish and sporty. That is why they have become the choicest mode of transport in India. However, many people put their bike-purchase on hold due to a lack of funds. Although hundreds of lenders offer bike loans, borrowers still need to save money for the down payment. This is when the need for zero-down payment loans arises.
While most lenders finance a significant percentage of the bike price as a loan and the borrower pays the remaining amount as a down payment, your lender may offer you a zero down payment bike loan depending on your credibility. At a nominal processing fee, some lenders fund 100% of the bike’s price on specific models in certain areas. Those having a good track record may get total finance on their favorite bike without any down payment.
Let us know more about this loan option and how to qualify for it.
What Does Zero Down Payment Bike Loan Imply?
Down payment is the amount a borrower pays at the beginning of a loan process. It is a percentage of the bike’s price the buyer pays to get the asset’s ownership. Several factors affect the down payment amount to be paid, including the bike’s cost, make, and model. The borrower’s credit history, income, and repayment capacity also impact the down payment. Some lenders offer zero down payment loan options, in which they finance the bike’s entire cost. This means that the bike buyer does take the burden of paying any money in advance.
Zero down payment loan saves the borrower from all worries regarding the bike’s upfront financial cost. Once the lender approves a two-wheeler loan, the borrower can take their bike home without paying any money from their savings. They only need to pay the processing fees while taking the loan. Simply use a two-wheeler loan EMI calculator to estimate EMIs and repay them on time to become your dream bike’s proud owner.
Benefits of a Zero Down Payment Bike Loan
A zero-down payment bike loan is an ideal financing option to purchase your favorite bike. It does not require the borrowers to shell any money from their savings before buying the bike. They may select their loan term using a two wheeler loan EMI calculator and repay the borrowed amount in easy EMIs.
Availing a zero-down payment loan gives several benefits to the borrowers. These include:
- Ability to purchase a bike without saving any money beforehand
- The lender finances the bike’s entire cost, after which the borrower may repay the loan in manageable EMIs
- Unaffected savings and cash flow
- Quick approval and disbursal
- Need to pay only the processing fees
- Minimal documentation required
- No risk of losing the down payment in case the borrower fails to repay the loan
Who is Eligible for a Zero Down Payment Bike Loan?
The borrower must fulfill the lender’s eligibility criteria to qualify for a zero-down payment loan. These include:
- 18 to 65 years of age
- Indian citizenship
- Same residential address for at least 12 months
- A salaried job with a minimum of one year of work experience
Eligible applicants must apply for a bike loan with the following essential documents:
- Last three months’ salary slips for government employees
- Salary slips or deduction certificates for private company employees
- Income Tax Returns for self-employed individuals
- Form 16
- Identity proof, like PAN Card, Aaadhar Card, and Drivers’ Licence
- Residential proof, like Aaadhar Card, Drivers’ Licence, Bank passbook, and electricity bill
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Steps to apply for a Zero Down Payment Two-Wheeler Loan
- Contact the lender for your loan requirement
- A customer representative will get in touch to provide details about the bike loan
- If you accept the loan offer, fill up the loan application form and submit
- Provide all the necessary documents
- The lender verifies your loan application and documents
- You get instant loan approval, with which you can drive your new bike home
Zero down payment bike loan does not require the applicants to make any upfront payment. It is an excellent feature for individuals who need to purchase a bike immediately but do not have enough savings for a down payment. However, it may result in a high loan burden, and repayment may be difficult for some. Therefore, taking a bike loan without a down payment is advisable only if you are sure of timely repayment without stressing your finances. One trick is using a two-wheeler loan EMI calculator to select a loan term with easily affordable EMIs.