How is the loan amount calculated for a zero down payment two-wheeler loan?

For a zero down payment two-wheeler loan, the loan amount sanctioned is typically the full ex-showroom price of the vehicle. Here are the key factors considered by lenders for calculating 100% funding:

• The on-road price of the two-wheeler: This includes the ex-showroom price, registration, insurance, and any other costs associated with purchasing the vehicle. Loan providers will consider the total on-road price for maximum loan eligibility.
• Condition and valuation of the used two-wheeler: If it is a used two-wheeler loan with no down payment, financial institutions will thoroughly assess the model, year of manufacture, kilometers run, maintenance etc. Older models with higher use will get lower loan amounts.
• Your repayment capacity: Loan providers will analyse your income, existing loans, expenses and credit profile to gauge how much you can repay each month. A higher repayment capacity can get you the full on-road price approved.
• Co-applicant’s income: Adding a co-applicant with good financial status improves the combined repayment ability, which can increase the chances of covering 100% of the two-wheeler price.
• Relationship with lender: Existing customers with good track records may get preferential pricing and fuller loan amounts.
• LTV ratio: Some lenders offer up to 90% of the two-wheeler's value for used models, so your loan amount maybe 90% of the market price.