Zero Down Payment Bike Loan
A facility known as a "Zero Down Payment Bike Loan" is one where the lender lends the borrower 100% of the two-on-road wheeler's price. There will be no down payment required other than the processing fee.
Let us have a detailed look at why zero down payment bike loans are a beneficial financing option.
Table of Contents
Benefits of Zero Down Payment Bike Loan
Some of the benefits of a zero down payment bike loan are given below:
- You will not have to go through the hassle of arranging money to purchase a two-wheeler. The lender will finance the cost of the vehicle, following which you can repay your loan in easy Equated Monthly Instalments (EMIs).
- Your liquidity is not affected.
Eligibility Criteria
The basic eligibility criteria that must be met to avail a zero down payment two-wheeler loan are mentioned below:
- Depending on the lender, the minimum age of eligibility may vary between 18 years and 21 years. The maximum age of eligibility may go up to 65 years.
- Loans are provided to salaried employees and self-employed professionals.
- You must be a resident of India.
- You must have a minimum of one year of work experience. In order to qualify for a zero down payment bike loan, the majority of banks will additionally demand that you earn a minimum wage of at least Rs. 12,000. The minimum wage will, however, differ from lender to lender.
- If you are a self-employed individual, then you must have had an existing business for at least 2 years.
- In case you have availed a loan earlier, the details must be provided.
- Your credit score must be good.
Fees and Charges
The different fees that are levied by some banks are mentioned in the table below:
Lender | Prepayment Charges | Documentation Charges |
Bank of India | Contact the bank | Contact the bank |
ICICI Bank | 4% of the principal that is outstanding | Rs.500 plus GST |
Axis Bank | 5% of the principal that is outstanding | Rs.750 |
Punjab National Bank | Nil | Contact the bank |
Canara Bank | Nil | Contact the bank |
Union Bank of India | Nil | Contact the bank |
Bank of Baroda | Nil for floating rate | Contact the bank |
HDFC Bank | Up to 5% of the principal that is outstanding | Up to 2.25% of the loan amount |
State Bank of India | Contact the bank | Contact the bank |
Jammu and Kashmir Bank | Nil | Contact the bank |
Interest Rates and Processing Fee
The interest rates and processing fee that are offered by few banks on a two-wheeler loan are mentioned in the table below:
TWL Bank | Interest Rate | Processing Fee |
Bank of India | 8.85% p.a. onwards | 1% of the loan amount (minimum of Rs.500 and maximum of Rs.10,000) |
ICICI Bank | 10.50% p.a. onwards | Up to 4.00% of the loan amount |
Axis Bank | 10.50% p.a. onwards | From 0.5% of the loan amount |
Punjab National Bank | 11.10% p.a. onwards | Contact the bank |
Canara Bank | 10.35% p.a. onwards | Nil |
Union Bank of India | 9.90% p.a. onwards | Contact the bank |
Bank of Baroda | 12.65% p.a. onwards | 2% of the loan amount |
HDFC Bank | 14.50% p.a. onwards | 2.5% of the loan amount |
State Bank of India | 12.85% p.a. onwards | 2.00% of the loan amount + GST ( Maximum 10000 +GST ) |
Jammu and Kashmir Bank | Fixed: RLLR + 2.50% Floating: RLLR + 2.25% | 1% of the loan amount (minimum of Rs.500) |
Documents
The documents that must be provided are mentioned below:
- Proof of identity such as Permanent Account Number (PAN) Card, passport, voter ID card, driving license, etc.
- Proof of address such as utility bills, Aadhaar, etc.
- Proof of income such as bank account statements, Income Tax Returns (ITR), and salary certificate in case of private limited firms.
- Know Your Customer (KYC) documents as specified by the lender.
How to Apply?
You can get in touch with a representative of the lender to get more details of the zero down payment bike loan. You will then have to submit the necessary documents and application form to the lender. Once the verification process has been completed, your loan application will be sanctioned.
FAQs on Zero Down Payment Bike Loan
- What is a down payment?
When you avail a loan for purchasing a two-wheeler vehicle, you might have to shell out 5% - 15% of the total value of the car, while the bank finances the rest of the amount. The amount you pay out of your pocket is called the down payment.
- Is it possible to avail a two-wheeler loan with making a down payment?
Yes, certain lenders offer 100% of the on-road price of the bike as a loan.
- Does Bajaj Finance offer up to 100% of the on-road price of the bike as a loan?
Yes, Bajaj Finance offers up to 100% of the on-road price of the bike as a loan.
- What should I do to ensure I can avail myself of the zero down payment option?
You must meet the eligibility criteria and make sure you have a healthy credit score to ensure that the lender offers you the zero down payment option.
- I want to buy a superbike. Will I be able to avail myself of the zero down payment loan to purchase it?
If you meet the eligibility criteria and have a healthy credit score, not only will the bank sanction your application for a two-wheeler loan but will most likely finance 100% of the cost of the superbike.
- Is it mandatory to submit KYC documents to get zero down payment bike loan?
Yes, it is mandatory to submit KYC documents to get zero down payment bike loan.
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