How to Get a Bike Loan with No Down Payment

Summary: Borrowers can now get Bike Loans without having to make a down payment. Check out this blog post to learn more about a Bike Loan with no down payment.

16 Jan 2023 by Team FinFIRST

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Two-Wheelers are often preferred for everyday commute on rough roads. It makes perfect sense, as their overall cost of maintenance and ownership is far lower than that of cars. Additionally, with fuel prices on the rise, Two-Wheelers are a practical solution for average commuters.

If you are considering buying a Two-Wheeler but are unsure about your finances, applying for a Bike Loan can be a wise option. In most cases, financial institutions offer Bike Loans that cover a percentage of the Two-Wheeler’s price. The remaining amount is paid by the customer – also known as down payment. However, there are some lenders that offer Bike Loans with zero-down payments. Let’s find out how they work.

What is a zero‑down payment bike loan?

When you apply for a loan for a high-value purchase, such as a home, car, or a Two-Wheeler, you are expected to pay around 5% to 15% of the total value. This payment is referred to as a down payment. The lender, such as a bank, covers the remainder of the amount. This means that you need to have sufficient funds to be eligible for a loan.

What documents are required?

Is it more expensive long-term?

Should I prefer flat or reducing rate?

While most lenders require you to pay a part of the Two-Wheeler’s value as down payment before sanctioning a Two-Wheeler loan, some financial institutions offer 100% of the amount. This means that you can avail a Bike Loan without making any down payment. This concept is called zero-down payment. In some cases, lenders require a minimal down payment, or a low down payment. For example, IDFC First Bank’s Two-Wheeler Loans provide the option of a low-down payment.

Under zero-down payments, the entire purchase is covered by the lender offering the loan.

Can I take a loan without a down payment?

There are some parameters that you need to fulfil to qualify for a zero-down payment Two-wheeler loan:

· You must be over 21 years of age. If you between 18-21 years old, you will need a co-applicant.

· You should be an Indian citizen.

What are the documents required for a Two-Wheeler Loan?

There are certain documents that lenders need before approving your Bike Loan application. These include:

· Proof of address (You should be living at the given address for at least a year. In case you relocate, you will be required to provide the relevant two wheeler loan documents.)

· Loan application form (You can download an application form for a Two-Wheeler loan from the lender’s website or get it from its branch.)

· Proof of identity

· A passport-sized photograph

What are the advantages of zero-down payment?

Listed below are some of the benefits of taking a Bike Loan with zero-down payment:

· This facility eliminates the stress of arranging money on your part. The lender will completely finance the vehicle. All that’s required of you is to repay your loan in the form of EMIs, i.e., equated monthly instalments.

· You don’t need to dip into your savings to purchase a Two-wheeler vehicle.

By applying for a Bike Loan from IDFC FIRST Bank, you can receive up to 95% of the Two-Wheeler’s value without any processing fees. To learn more about the offering, please speak to one of our bank’s representatives.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.