Bikes are convenient and the most used transport in India. It is everyone’s preferred transport owing to the convenience, style and mileage that it gives. Bike loans are as easy as your bike rides. It does not require collateral. Also, they start at interest rates as low as 7.25% and have a flexible tenure of three years.
Minimum Down Payment Required for a Bike Loan
The down payment you require to pay varies according to the lender. Usually, lenders charge about 15% to 30% of your loan amount as a down payment. Your down payment rate mainly depends on the cost of your bike and your repayment capacity.
Down payment is made compulsory by most lenders to reduce the risk of borrowing. Additionally, a higher down payment will reduce your loan tenure. However, a few lenders offer zero down payment bike loans at best deals. They also cover bike insurance and other charges related to the bike.
What is a Zero Down Payment Bike Loan?
With a down payment system, you need to partially pay the bill amount initially, while the lender will finance only a part of your loan based on your eligibility. You will have to repay the loan in equated monthly instalments. The interest rates and time of repayment, and the instalments can be calculated beforehand and customised with the lender. On the other hand, zero down payment two-wheeler loans do not require you to pay any amount to buy the bike initially.
The loans that do not require down payments are better for the following reasons:
- You do not have to exhaust your savings to pay for the bike loan
- Hassle-free financing
- Easy documentation
- Immediate bike purchase
- Convenient repayment schedule through easy EMIs
- Nominal foreclosure charges
Factors that Affect Your Minimum Down Payment
The minimum down payment that you need to pay for a bike loan depends on the following factors:
- Cost of the bike
- Your credit scores
- Bike’s make or model
- Your credit history
- Your repayment capacity
- You have an existing loan with your lender
How to Check Your Bike Loan Eligibility
You can check your bike loan eligibility using the bike loan calculator to know the maximum amount you can get for your bike loan. You also need to check your lender’s eligibility criteria for zero down payments. If you meet both, then you can go ahead and apply online for the bike loan.
How Can You Apply for a Zero Down Payment Bike Loan?
Step1: Go to the lender’s website
Step 2: Fill in your basic information
Step 3: Upload documents required for a bike loan
Step 4: The lender will call you to take the application further.
Once your loan is approved, the loan amount will immediately reach your bank account. You can also use a bike loan calculator available at the lender’s website to help you plan your monthly EMIs.