For every bike enthusiast, it is a great pleasure to own a two-wheeler and travel on it every day. Be it commuting to your place of work or a road trip to a hill station with your best friends, bikes can be the most convenient companions.
One of the best ways to own your dream bike is by financing it from a reputed institution. Financing allows you to split the payments for the bike into affordable monthly installments that do not put too much pressure on your wallet.
What is a zero down payment bike loan, and what are its perks?
Zero down payment bike loan is a means of financing your bike without having to pay the full money upfront when you buy your two-wheeler. It depends on the cost of the vehicle and the margin could be 5% and 15% of the actual cost of the motorcycle. Although this may sound too good to be true, these bike loans help remove the financial burden from the shoulders. They allow owners to get a bike without it putting too much of an impact on their current budget or lifestyle.
What exactly is a down payment on a bike loan?
Every time you approach a bank for a loan or financing, the banker will expect you to pay a certain portion of the total cost towards the down payment of the bike. That means that the bank will agree to finance your bike loan to a certain extent, and expect you to pay the balance amount. For example, for a two-wheeler loan, finance companies generally offer the customers the option of 85 % to 90 % financing. This ultimately means that the finance company will want you to pay Rs 10,000 as an initial down payment for a bike worth Rs 1 lakh. The remaining Rs 90,000 will be covered via the loan that you apply for.
How is a zero down payment bike loan different from traditional bike loans?
Zero down payment bike loan is one where the financing company does not expect you to make an initial payment for the ownership of your bike. It means that you will not be expected to pay that initial Rs 10,000 that would have been required to pay in the case of a down payment bike loan.
The lender, which is the financial institution, in this case, will cover the full cost of the bike. You can own a bike without having to pay anything initially.
What are the key features of a zero down payment bike loan?
There are several reasons why a customer might opt for a zero down payment bike loan. They are listed below:
- Easy Approval:
Applying with a certified lender can result in easy approval for your bike loan. Depending on the documents, bike loans can take a few minutes to 72 hours to get support. The only thing that will hinder your ability to get the right bike loan is if you have any prior loans that you might have defaulted on.
- Finance companies offer zero down payment loans to salaried and self-employed people:
To avail a two-wheeler bike loan, a person must be salaried. It is so because having a job ensures that you have a valid credit rating. The finance company that is issuing your loan will check if your credit score is eligible to avail the loan before proceeding with your application.
- Zero down payment bike loans can give you up to 30 lakhs worth of financing:
The sheer freedom and power that zero down payment loans offer to customers make them incredibly worth the consideration. Bike loans can range from anywhere a few ten thousand rupees up to 30 lakhs. They typically are offered to people with good credit scores at around 8 % interest. If you have a relatively weak credit score, don’t be too surprised if you are charged interest rates of even up to 28%. You can use a bike EMI calculator to find out what your monthly payments will be.
- Simple Documentation Process:
Like most other loans, for a zero down payment loan, you will be expected to produce standard documents such as standard identity proofs, proof of income, and residential proof.