Know About – Zero Down Payment Bike Loan

Last Modified: 25-November-2022

Between FY17 and FY20, two-wheeler loans grew by 1.8X in value and 1.2X in volume before declining in FY21 due to the Covid pandemic.

NBFCs dominate the two-wheel loan market. The average ticket size increased by 23%, from Rs. 57,500 in FY17 to Rs. 60,500 in FY21. In FY21, 61.3% of two-wheeler loans were made to borrowers under 35, and 64.5% were made to borrowers who were new to credit.

The thought of riding a bicycle is appealing for many reasons, but for some people, the cost of purchasing a bike is a major impediment. However, with research, they can find a zero down payment bike loan that will help them get the bike they want without paying a significant amount of money upfront.

Fees and Charges

Processing Fee Up to 3% of the loan amount
Documentation Charges Up to 3%
Interest Charged on the Loan Varies from lender to lender
Foreclosing Charges Varies from lender to lender
Stamp Duty Varies from state to state

Criteria for obtaining a bike loan with no down payment

In most circumstances, if a person wants to get a loan to buy a two-wheeler, they will have to pay a down payment of between 5% and 20% upfront. The balance is subsequently provided by the financial organisation granting the loan.
As a result, anyone seeking a loan must have some cash to purchase a two-wheeler.

A bike loan with no down payment is not the same as a regular vehicle loan. A zero down payment loan eliminates the requirement for a significant down payment—the lender assists with the full cost of the vehicle in this situation.
This means that one may stroll into a showroom and walk out with a brand-new bike without paying a penny. This loan is not available to everyone. To be eligible for a loan, a person must meet certain requirements and check zero down payment bike offers.

The processing charge, which is normally levied directly by the lender during the loan procedure, is the only preliminary cost involved with a zero down payment bike loan.

Many financial institutions provide zero down-payment bike loans, but it is good to do homework and pick the best one before applying.

People can acquire bike financing up to 100% of the cost of the bike through Muthoot Capital, which offers affordable lending rates and speedy approvals with minimal documentation and the best zero down payment bike offers.

Muthoot Capital also offers customised two-wheeler loan programmes to meet the needs of its customers.

With Muthoot Capital, the eligibility requirements are:

  • A two-wheeler loan can be obtained by any Indian resident, whether salaried or self-employed.
  • Bike finance is available to salaried individuals making a minimum yearly income of Rs. 96,000 or self-employed individuals generating a minimum annual profit of Rs. 1,20,000.
  • Applicants must be 18 years old at the time of application and 65 years old at the end of the loan period to qualify for the two-wheeler loan.
  • Applicants must have a good credit score to be considered for a loan. The better the credit score, the more likely one is to acquire a low-interest loan.
  • They offer 100% financing for particular models under specific schemes.

For Muthoot Capital bike financing, the following documents are required:

  • A passport, Aadhaar card, voter ID card, driver’s license, utility bills, ration card, and LIC insurance are acceptable forms of address evidence.
  • A passport, PAN card, voter ID card, driver’s license, and Aadhaar card are acceptable forms of identification.
  • ITR/Salary credit in a bank account or payslip as proof of income.
  • Recent land/building/house tax receipt as proof of ownership.

Why is a bike loan with no down payment advantageous?

The following are a few benefits of a zero down payment bike loan:

  • Borrowers will not have to worry about saving up money to buy a two-wheeler. The lender will finance the vehicle’s purchase price, after which they can repay their loan in convenient Equated Monthly Installments (EMIs).
  • Their financial situation or cash flow remains unaffected.
  • The loan can be disbursed quickly and easily, and one has to pay only the processing fees.
  • The loan can be obtained with minimum documents.

Conclusion

Having an ideal bike does not have to be a dream. If one finances it properly, it may be fairly reasonable.
Individuals need to start with a plan, consider whether they can easily afford to pay each month, hunt for a bike that suits their budget, check the zero down payment bike offers, and compare interest rates from multiple lenders before making their final decision.

Getting a two-wheeler loan with Muthoot Capital is straightforward, with reasonable interest rates starting at 0.99%, minimal documentation, and quick customer service.

About Author
Muthoot Capital Services Limited is one of India's most progressive financial companies. It is the part of Muthoot Pappachan Group which carries a legacy & trust of more than 133 years.

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