The COVID-19 pandemic has led a people shift to private modes of transportation and what can be a better and more cost-effective way than a two wheeler. Two wheelers are considered to be a very efficient, convenient and safe mode of transportation all across the globe. It is even more convenient and useful in India due to heavy traffic and congestion. That being said, you may have the thought of buying a two wheeler anytime soon.
When you think of buying a bike, there are a few basic things that would come to your mind, and amongst them, will be the question whether it is possible to get a bike loan without down payment. People have their dream bikes that they want to buy or some simply need a sustainable one with good performance, fuel efficiency and styling amongst other features. No matter what the preferences are, arranging the money for purchasing a bike is a major concern.
This is where bike loans can be very useful. In this article, we have discussed bike loan eligibility and all you need to know about a bike loan without down payment. It will help you get better insight into what you need to know to avail such a loan when purchasing a bike.
A variety of lenders of zero down payment bike loans in today’s time. Banks and financial institutions are offering bike loans to people who want to purchase a bike or a scooter. A traditional two wheeler loan does not lend the full amount of the purchase of the two-wheeler. Generally, the buyer has to pay a certain amount in the form of down payment.
For a zero down payment bike loan, the borrower does not have to worry about the financial cost of buying a bike upfront. Zero down payment means that the buyer can get the vehicle without having to make any payments upfront. The only thing that you would have to pay for upfront is the processing fee for the loan.
You must always check the eligibility criteria for a loan before you apply for one. It is a basic step before you choose to avail any kind of two-wheeler loans. Zero down payment two wheeler loans are available both online as well as offline from a number of lenders. Different lenders have different kinds of eligibility criteria. Although there are a few basic ones common to most lenders in the market. Check them out:
- The applicant must be over 21 years of age. If an applicant is between the age of 18 to 21 years, having a co-applicant above the age 21 is necessary for some lenders.
- The applicant should be a resident citizen of India.
- A steady income source (at least 2 years of employment at the current job or a business that has been operating for at least 2-3 years for self-employed professionals).
- A good credit score and credit history.
No down payment bike loan are available for both salaried as well as self-employed professionals. While different lenders need you to submit different types of documents, there are some common documents that you need to submit for the majority of lenders offering zero down payment bike loans. Let us take a look at the basic documentation required for such two wheeler loans in India.
- Proof of identity (Voter’s ID, PAN Card, Aadhar Card, Passport)
- Proof of Address (Ration Card, Voter’s ID, Utility Bill and any other relevant documents).
- Passport-size photograph.
- A properly filled out loan application form.
- Proof of employment and income for salaried professionals (pay slip and bank statements for the last 3 months at least).
- ITR file for self-employed professionals and documents to show a business operating for at least 2-3 years).
If you are eligible and have all the required documents as mentioned above, then you can easily apply for and avail a bike loan without down payment. With such a loan, you will not have to worry about arranging the money when purchasing a two wheeler and can slowly repay the loan as per the loan tenure and terms and conditions. You will have to pay the loan back in EMIs during the repayment tenure!