Know all about zero down payment on two wheeler loan
Financiers usually do not offer the entire cost as a loan; to purchase a vehicle, you will usually need to pay a lump sum while making the purchase, known as the ‘down payment.’ In the case of a two-wheeler loan, the down payment can be worth as little as 5 percent of the vehicle’s value. However, a financier might sometimes consider you for a zero-down cost on a two-wheeler loan.
What is a zero down payment on two wheeler loan?
With a zero down payment loan, you will not have to pay the down payment for the two-wheeler at the time of purchase. Instead, the financier offers the vehicle’s entire value as a two-wheeler loan, and you will only need to pay the loan processing fees and related charges.
What are the advantages and disadvantages of a zero down payment two-wheeler loan?
The obvious benefit is that you don’t need to save money upfront before purchasing a two-wheeler. The disadvantage is that since the loan amount is larger, the total amount of two-wheeler loan interest rates paid will also be higher. However, it translates to a negligible increase in the EMI.
What documentation will you need to apply for a zero down payment two-wheeler loan?
The documentation required for a zero down payment on two wheeler loan is the same as any other two-wheeler loan. It includes documents such as:
- Government-issued ID proof (Aadhaar card/Driver’s license/PAN card)
- Government-issued address proof (Aadhaar card/Passport)
- An employment or offer letter
- 2-3 months’ salary slips
- Bank statements for the previous 3-6 months
Who is eligible for a zero down payment on two wheeler loan?
The eligibility criteria for a zero down payment of two wheeler loan is a little higher than that for a regular two-wheeler loan. Still, in essence, it is the same: you need to be at least 18 years old at the time of disbursement of the loan, and 65 years of age at the most senior, should have lived at the same address for at least 12 months, have had employment for at least 12 months or should be able to present IT returns for at least two years, in case of self-employment, have a permanent telephone number. Of course, a good CIBIL score is necessary.
Many two-wheeler vehicle financiers offer zero down payment loans. Browse through your options and choose the best one by comparing loan amounts, two-wheeler loan interest rates, and tenure to make your dream two-wheeler purchase easier.