Table of Contents
- What Is Down Payment?
- What Is Minimum Down Payment for Bike Loan?
- What is a Zero Down Payment Two Wheeler Loan?
- Pros of Zero Down Payment Bike Loan
- Cons of Zero Down Payment Bike Loan
- Eligibility Criteria To Avail Zero Down Payment
- Documents Required
- How Can You Apply For The Two Wheeler Loan?
- FAQs
- What is a bike down payment?
- What can I do to guarantee that I am eligible for the minimum money down payment option?
- I'd like to purchase a superbike. Will I be able to purchase it with a zero-down payment loan?
- What is the minimum and maximum two-wheeler loan amount?
What Is Down Payment?
When you take out a loan to buy a high-value item like a vehicle or a two-wheeler, you will often be asked to pay a down payment of between 5% and 15% of the purchase price upfront. The bank lends the remaining 85 %to 90 %of the amount. A down payment implies the availability of funds at the time of purchase.
What Is Minimum Down Payment for Bike Loan?
In India, bikes are one of the most common modes of transportation. While some people want a simple ride, others want to purchase their ideal bike as quickly as possible. The amount of a down payment required for a bike loan is determined by the following factors:
1. The cost of the bike
2 .Make and model of the bike
3. Your credit history
4.Your current repayment capacity
5. Previous relationship with Fullerton India
Although some lenders provide financing on the value of the bike, your way to acquire it is dependent on your credit history and connection with the lender. When buying a two-wheeler, the required down payment usually ranges from 10% to 30% of the vehicle's worth.
The amount of money you put down on a two-wheeler loan is determined by the lender's policies. A down payment of 20% of the vehicle's value is required by some lenders. The lender requires a down payment to lessen the risk of borrowing.
Making a larger down payment reduces your debt burden and allows you to repay the loan in a shorter period. You may find the lender's down payment information on their official website, or you can call their customer service department for the most up-to-date margin and interest rates.
What is a Zero Down Payment Two Wheeler Loan?
A bike loan with no down payment is one in which the lender covers the entire cost of the vehicle you want to buy. There won’t be any down payment required aside from the processing charge.
Let's see why zero down payment bike loans are a good option for financing.
Pros of Zero Down Payment Bike Loan
The following are some of the advantages of a bike loan with no down payment:
1. You won't have to worry about putting money aside to buy your two-wheeler. The lender will finance the vehicle's cost, after which you may return your loan in manageable EMIs.
2. Your cash flow is unaffected.
3. Your loan will be processed with little documentation.
4. Customized loan amounts: you may choose a loan amount based on your needs.
5. Tenure flexibility: For two-wheeler loans, you may choose a payback period of 12 to 48 months, and for superbike loans, you can choose a repayment period of 12 to 60 months.
Cons of Zero Down Payment Bike Loan
If you don't have any funds, it may suggest to potential lenders that you're at risk of foreclosure. As a result, while they may grant you a loan, it will almost certainly come with a higher interest rate. This might result in a significant rise in the amount you pay over time.
Eligibility Criteria To Avail Zero Down Payment
If the potential borrower meets all of the lending institution's eligibility conditions listed below, they are entitled to apply for a two-wheeler loan. So, let's take a look at the eligibility criteria to acquire a loan.
1. The minimum age of eligibility varies per lender and can range from 18 to 21 years old. The maximum age of eligibility is 65 years old.
2. A salaried or self-employed professional is required.
3. You must be an Indian citizen.
4. You should have a minimum work experience of a year. To be qualified for a zero-down payment bike loan, most banks would ask you to earn a minimum salary of Rs.12000/month.
5. If you are a self-employed person, you must have been in business for at least two years.
6. If you have already taken out a loan, you must submit the details.
7. A strong credit score is required.
8. Check to see if any of your checks have bounced in the past.
9. For at least a year, you must have lived at the stated address. You will be required to supply applicable papers in the event of a change of location.
There are many websites that can be used for a two wheeler loan eligibility check. You check eligibility for Shriram Finance two wheeler loan here.
Documents Required
You will have to provide basic documents, such as standard identity proofs, proof of income, and proof of residency, among other papers.
1. Id Proof such as passport, PAN card, voter ID card, etc.
2. Address proofs like Aadhaar, utility bills(gas bills), etc.
3. Income statements documents like income tax returns, bank account statements, credit score, salary certificate in case of private limited firms.
4. Remaining KYC documents whichever asked by the lender.
How Can You Apply For The Two Wheeler Loan?
You can contact a lender representative for additional information on bike loans. After that, you must submit all required papers and an application form to the lender for verification. Your loan application will be approved if all of the information you provided is valid.
FAQs
1. What is a bike down payment?
When you take out a loan to buy a two-wheeler, you may have to pay 5% to 15% of the total worth of the vehicle out of pocket, with the bank covering the remainder. The down payment is the amount you spend out of your wallet.
2. What can I do to guarantee that I am eligible for the minimum money down payment option?
To guarantee that the lender provides you the minimum down payment option, you must fulfil the qualifying conditions, have a good credit score, and have low debt.
3. I'd like to purchase a superbike. Will I be able to purchase it with a zero-down payment loan?
If you match the requirements and have a good credit score, the bank will not only approve your application for a two-wheeler loan but will also most likely finance the entire cost of the superbike.
4. What is the minimum and maximum two-wheeler loan amount?
The minimum loan amount available is Rs. 30,000, with a maximum loan amount of Rs. 25 lakh.
