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Looking for a bike loan but worried about the upfront charges? 100% financing is now possible! TVS Credit’s zero down payment Bike Loan allows you to own your desired Two Wheeler without any upfront cost*.
This blog will explore all you need to know about zero down payment Bike Loans. It will help you navigate the process, whether you’re buying for the first time or looking to upgrade.
What is Down Payment?
Down payment refers to the initial sum a buyer pays out of pocket when buying a Two Wheeler. The buyer makes this payment at the time of purchase, and it represents a percentage of the vehicle’s total cost. A Two Wheeler Loan covers the remaining balance. So, if you get 95% financing for your two wheeler, then you will have to pay the remaining 5% as down payment at the time of your bike purchase.
What is Zero Down Payment Two Wheeler Loan?
Banks and financial companies offer Two Wheeler Loans to aid the purchase of bikes and scooters. Most of the time, these loans cover up to 95%* of the vehicle’s on-road price.
A zero down payment Two Wheeler Loan allows the buyer to purchase their desired vehicle without any upfront deposit or payment. Such a loan, enables immediate ownership with no hidden or additional costs, except a nominal processing fee, which the lender will charge when you apply for the bike loan.
How does it differ from conventional bike loans?
A zero down payment loan isn’t like your typical bike loan. With this option, you don’t have to put any money down at first. The Two Wheeler Loan offered by TVS Credit covers 100%* of the vehicle’s on-road price depending on the borrower’s profile.
Now you can visit the bike dealership or showroom and buy the bike of your choice without any issues with a zero down payment loan.
Advantages of Zero Down Payment Bike Loan
Compared to conventional methods of financing, taking a zero down payment Bike Loan has many perks and advantages such as:
- 100% funding: The NBFC/Bank covers the full cost of the bike
- Convenient EMI: You can repay the loan through affordable regular monthly instalments
- No hidden charges: There are no hidden or additional charges other than nominal processing charges at the time of Two Wheeler Loan application
- Minimal documentation: Quicker processing with minimal, hassle-free online documentation
Is there any difference in total interest paid on a zero down payment loan vs a conventional bike loan with a down payment?
When you’re opting for zero down payment loans over conventional bike loans, keep in mind that you may have to pay more interest in total over your loan tenure.
While making the decision, consider how much the loan will cost throughout the period to make the best choice based on your repayment capacity.
Tips for getting the best deal
When you’re looking to get a bike loan, don’t just focus on the lowest interest rate. To get the best deal on a zero down payment Bike Loan, keep the following in mind:
- Leverage existing lender relationship: Having an existing relationship with your lender makes it easier to verify your creditworthiness. It also increases your chances to get better interest rates.
- Market comparison: Conduct a thorough study on Loan-to-Value (LTV) ratio, interest rates, processing fees, and total costs from different lenders.
- Look for special deals: Sales during certain times of the year, such as festive seasons and special occasions can give you perks such as free insurance, lower fees, and better loan-to-value ratio.
Who is eligible for a Zero Down Payment Loan?
While the eligibility criteria may vary depending on the lender, here are some common eligibility requirements:
- Your age should be between 18-65, if you are below 21 years of age, you can apply for the loan with a guarantor
- You should be an Indian citizen
- Your CIBIL score/credit score should preferably be higher than 750
- Salaried applicants must have a total work experience of at least 1 year
- If self-employed, you should have proof of stable income (ITR with computation of Income)
| Factor | Zero Down Payment Two Wheeler Loan | Conventional Two Wheeler Loan |
|---|---|---|
| Down Payment | No upfront payment | Requires a minimum amount as down payment, which might vary based on borrower’s profile |
| Interest Rates | Overall higher interest rate due to increased risk for the lender | Generally lower interest rate due to partial payment lowering the risk for the lender. To know more about Two Wheeler loan interest rate at TVS Credit click here. |
| Loan Amount Coverage | 100%* on-road price of the bike is covered | Up to 95%* of the vehicle’s on-road price is covered |
| Cash Flow | Your cash flow remains unaffected owing to the upfront payment by the lender | Affects your cashflow and finances as big amount of money goes into the down payment of the loan |
A zero down payment loan can be advantageous if you prefer to maintain good cashflow and want to manage payments better without an upfront cost.
Make your choice mindfully based on your financial situation, preference and convenience. One option to consider is TVS Credit, which offers zero-down payment bike loans based on your profile and provides a quick loan with no difficulty. So don’t wait any longer and Apply for a Two Wheeler Loan with TVS Credit now!
FAQs –
- Can I take loan without down payment?
Yes, you can secure a loan with no initial payment required in some cases. A zero down payment Bike Loan allows the lender to finance the full cost of your bike. This means you can purchase your desired Two Wheeler without needing to make any upfront payment.
- What is the minimum down payment for a bike loan?
Bike down payments typically vary between 10% and 30% of the bike’s value. Many buyers opt for this lower initial payment to benefit from reduced EMI (Equated Monthly Instalments) and ease their financial obligations in the long run.
- Is down payment compulsory?
A down payment is not mandatory for Two Wheeler Loans in some cases. TVS Credit offers various plans with loan terms of up to 60 months and competitive interest rates. For details on our current two-wheeler financing options, please visit our Two-Wheeler Loan product page.
- Why is zero down payment bad?
Zero down payment loans may come with drawbacks such as higher interest rates, extended loan tenures, and additional fees. These factors can increase the overall cost of the loan, so it’s important to weigh these against the benefit of not making an upfront payment.
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