Whenever a customer approaches a bank for a two-wheeler loan or a car loan, a lender would extend loan only up to 70 to 85% of the loan value. The customer would have to cover up for the 15%-30% difference and pay from his pocket. This is called a down payment. In other words, the bank requires you to pay some liquid cash at the time you purchase your vehicle. Of late, the number of applications for two-wheeler or car loans is on the rise. It is a matter of pride for the Indians to own a two-wheeler or a car. With several financial institutions providing a two-wheeler loan at competitive rates of interest along with flexible repayment schemes, buying a vehicle has become very easy.
Certain lenders offer zero down-payment two-wheeler loans
Having understood that almost all the banks ask the customers to pay a certain amount as down payment, some other banks provide a 100% loan to the customers. Different lenders have different criteria for lending zero down payment two-wheeler loans. Certain lenders provide zero down payment loans to existing customers for particular model vehicles, while others provide insurance charges and registration fees along with the cost of the vehicle, and yet some others don’t provide insurance charges and registration fees, but only the cost of the vehicle.
A healthy credit score is important
One of the main points these lenders take into account is your credit score. Just like the US, credit score plays an important role in lending in India too. A high credit score can fetch you zero down payment two-wheeler loans easily. You should have a healthy credit score to be eligible for a two-wheeler loan without a down payment. Every customer may not be able to avail of this service of the lenders. If a customer fails to meet the criteria the bank has fixed, he will not get the 100% loan amount. But they will be able to get a higher amount compared to those who don’t qualify at all.
A steady job in a reputed firm helps
Furthermore, your income also plays an important role in fetching you zero down payment two-wheeler loans. If you work in a multinational company with an attractive salary, the amount you will get a loan will be higher compared to a person with a normal job and a not-so-great salary.
Read through the eligibility criteria given below to find out whether or not you can take a zero down payment two-wheeler loan.
Eligibility criteria for zero down payment scooter loans:
- Repayment history: The bank will check your previous repayment history along with the repayment pattern you follow for any running loan account. If you are repaying the loan promptly, the lender will extend the full loan amount without you having to shell out anything from your pocket.
– Your city of residence should be the same for the past one year.
- You should be at least 18 years old when applying for the two-wheeler loan and less than 65 years old before the loan ends.
- You have to provide address proof for getting the loan. If the document you give for address proof shows any other address, provide the relevant document containing the present address. Otherwise, change the address in the proof document at the earliest.
- You should be working in some company for the past one year.
Documents required for applying for a loan:
- ID proof like Passport, Voter ID, etc.
- Address proof like Voter ID, Driving License, etc.
- Income proof like salary certificate or IT returns for self-employed persons.
Most lenders have a two-wheeler loan EMI calculator on their website that will help you to get a basic idea of the rate of interest, the amount of loan, and the duration of the loan.
In short, there are many banks and financial institutions that extend zero down payment loans to finance two-wheeler purchases for individuals in India.
If you have an existing relationship with a lender, then it may be possible for you to secure a zero down payment loan at the best possible interest rate.
Once the loan is approved, you can get your favourite two-wheeler without paying a single penny upfront. Why wait? Get your two-wheeler now.