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Can One Get Bike Loan without Down Payment?

Two wheeler loans have become immensely popular in India as the demand for two-wheelers has increased substantially in the last two decades. Majority of the middle-class segment of India wants to own a two-wheeler and bike loan turns out to be a viable option as you are required to repay the loan amount in Equated Monthly Installments (EMIs). 

Get two wheeler loan online approval and if you meet certain criteria you might get 100% finance for the bike of your dreams.     

Usually, the two-wheeler loan is sanctioned by making a down payment of 15 to 20% but there are some banks and private lenders who offer 100% finance on two-wheelers and you can own your dream bike or scooter without paying anything upfront. With a nominal processing fee, some banks do not ask for the down payment from the existing account holders on some specific models. Some lenders provide 100% finance for the two-wheeler and some of them also cover the registration fees and insurance charges. If you can provide required eligible documents to the lender with good repayment track, it is a lot easier to get total finance on your favorite bike.

The eligibility norms for bike loan without down payment vary from lender to lender and your monthly income is a key factor in securing 100% finance for a two-wheeler of your choice. If you work for a well-established company it is easier to get maximum funding on your two-wheeler loan. If you have a good credit track record with credit rating agencies like CRISIL or CIBIL your chances of getting a bike loan with zero down payment are much brighter as the bank will examine your credit score on the basis of loans repayments for your existing loans. Existing customers also get a preference to avail the option of zero down payment for two-wheeler loans. 

Documentation for zero down payment for two wheeler loan includes identity proof, address proof, income proof among other documents. If you are wondering how to apply for a bike loan simply apply online, check your eligibility status and if you qualify, the funds are transferred to your account in a short span of time. It is at the sole discretion of the bank or private lender to sanction a two-wheeler loan with zero down payment. Few banks give two-wheeler loans without a down payment on selected models only. Chances of zero down payment on two-wheeler loans are rare and it is possible only if you have a good credit score above 750. You must compare the two-wheeler loan offer of different lenders and then go with the one that offers you the maximum financing possible. 

Lenders are hesitant to give 100% finance on two-wheeler loans as taking a down payment provides the lender with extra assurance that the borrower can pay off the two-wheeler loan. It also helps the lender decrease their losses of the outstanding amount as sometimes it is difficult to resell the two-wheelers. If a borrower has some money to make the down-payment, it is an indicator that he may have a similar amount of money every month for making EMI payments. If you default on your two-wheeler loan your down payment will go as well. The lender will suffer less in case the borrower defaults on the repayment. While all borrowers may not be eligible for a 100% financing from the few lenders, it is always possible to get a higher loan amount by meeting certain eligibility criteria.

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