How the zero down payment loan for two wheels works

How does the two-wheeler loan with zero down payment work?

New Delhi : Two-wheelers can cost anywhere from ₹30,000 to over ₹80 Lakhs. The majority of people looking to buy a two-wheeler go for commuter or naked bikes in India. On the other hand, young adults and adventurers opt for cruiser, sport or touring bikes, which can cost around 2 to 5 Lakhs. So, depending on your propensity and needs, you may have to spend a considerable sum when buying a two-wheeler. Considering it can be expensive, 75% of future bike owners nationwide apply for two-wheeler loans to finance their purchases. Individuals also use two-wheeled loan calculators to arrive at repayment terms that work for them.

You can approach NBFCs, banks, and captive finance companies to avail a two-wheeler loan. Typically, lenders offer 65-90% of the on-road price of the two-wheeler as the loan amount. However, some lenders – mainly non-bank financial companies (NBFC) – offer up to 100% financing of the on-road price of the two-wheeler. This amount also covers additional costs such as RTOs and insurance premiums, and you won’t have to spend any money out of pocket.

What is a down payment on a loan?

When you make a high-value purchase, like a two-wheeler or even a house, you need to make a certain payment up front. When it comes to two-wheelers, different lenders have different markups – usually around 15-30% of the bike’s road price – that the potential bike owner must pay upfront. This is called a down payment; i.e. the difference between the cost of the bike and the loan amount approved by the lender. Usually, the higher the cost of the two-wheeler, the greater the down payment required.

Let’s take an example to understand this concept. If you buy a two-wheeler that costs ₹2 Lakhs and the lender covers 85% of the on-road price, you have to pay the remaining 15%. This translates to ₹30,000. This is the deposit you must pay when purchasing the vehicle.

What is a bicycle loan without deposit?

Some lenders cover the entire cost of the two-wheeler, including registration fees and insurance premiums. In such cases, you won’t have to worry about cash or finding additional funds. It’s called a no-down payment bike loan, because you won’t have to pay a down payment. By paying a nominal handling fee, you can qualify for funds to cover the on-road price of the vehicle.

Features and benefits of a no-down payment bike loan

100% Financing – When you have access to a no-down payment bike loan, you won’t have to worry about finding extra funds to purchase the vehicle. The loan amount will cover the entire cost of the two-wheeler.

Convenient EMIs – You can repay the loan amount in small monthly installments. You can use a two-wheeled loan calculator to find the most convenient EMI amount and duration. Moreover, the repayment period ranges from 12 months to 60 months.

Pay only the processing fee – While benefiting from a bicycle loan without deposityou only need to pay a nominal processing fee.

Minimum Documentation – You must provide basic KYC documents, such as your ID, address, and proof of employment or income.

Nominal interest rate – The interest rate is marginal and ranges from 6.85% to 28.3%.

Large Loan Amount – You can also get access to Large Loan Amount up to ₹30 Lakhs.

Eligibility criteria for obtaining a bicycle loan without deposit

Before applying for a bike loan without down payment, it is important to check the eligibility criteria. Common criteria include the following.

Age – You must be at least 21 years old (18 for some lenders) and no more than 65 at the end of the loan term.

Credit Score – Most lenders require applicants to have a good credit profile and a minimum credit score of 750.

Income – You must be earning at least ₹12,000 per month. However, this may vary from lender to lender.

Employment status – You must be employed or self-employed. You must also have at least one year of work experience.

Residence – You must have resided in the same city for at least one year.

Calculate repayment terms after getting a bike loan without down payment

Before applying for a bike loan with no down payment, you can use the two-wheeler loan calculator – which you can find online – to calculate the repayment terms. Changing the repayment term and interest rate variables will give you different EMI amounts. You can then find the ideal combination of loan amount, interest rate, and repayment term and apply for the two-wheeled loan.

How to apply for a bike loan without a deposit?

Several lending entities offer up to 100% financing of the vehicle price on the road. Once you have found the lending institution that offers the best conditions, you can apply for the bike loan in the following way.

Step 1: Visit the lender’s website or visit their office

Step 2: Complete the application form if applying for a loan online

Step 3: If needed, upload KYC documents

Step 4: Submit the application form and a representative from the lending entity will contact you

Step 5: The lender will verify your loan application and notify you of their approval status

Whether you want to buy a super bike or a normal commuter bike, you can apply for a no-down payment bike loan to finance the purchase. Visit Bajaj markets and apply for a loan for two wheels, and benefit from nominal interest rates and fast loan disbursements. You also get financing of up to 100% of the vehicle’s on-road price. Simply use the two-wheeler loan calculator to find the best repayment terms and get access to the loan amount.

About Matthew R. Dailey

Check Also

Homebuyers Get 10% Down Payment Assistance With CA Forgivable Equity Builder | HD Post

STATEWIDE – As of November 2022, interest rates were still above 7% – impacting affordability, …