Know About Two Wheeler Loan Down Payment & Other Charges!

Owning a vehicle can be a costly endeavour for most working professionals and college students. Fortunately, you can become a proud owner of your dream two-wheeler by securing a hassle-free loan from leading lenders like Bajaj Auto Finance!

It is essential for you to know and understand monetary transactions' intricacies and the advantages you can take while purchasing a high-value product like a two-wheeler or a car.

Motorbike specialist Bajaj Auto, collaborating with international adventure bike manufacturer KTM, is India's leading two-wheeler manufacturing outlet. To ensure a profitable purchase packed with incredible endurance and speed, read ahead. This blog aims to clarify every doubt you ever had, which made you hesitant to own that dream bike of yours!

What is Initial Down Payment?

Generally, you are expected to pay a mandatory 5%-15% of the value upfront when taking a bike loan. It is known as a down payment. A down payment on any of your preferred two-wheeler loans depends on several factors.

Parallel to this, the bank offers the balance amount ranging from 80% to 90% of the value as a loan to you. Bajaj Auto Finance provides lucrative payment schemes of the initial down payment for bike loan that depends on the customer's financial profile and creditworthiness.

Are There Any Factors Which Affect Down Payment?

Yes, to secure the best-suited payment scheme for your dream bike, it is vital to acknowledge the same factors and policies. Here are the factors which affect the down payment amount:

  • Customer's credit profile
  • Customer's relationship with the lender
  • Policies of the lender
  • Price of bike
  • Customer's repayment capacity

In addition to this, keep in mind that the higher the credit score you possess, the larger amount you can obtain as a loan.

Why is Initial Down Payment Important?

You need to budget your purchase well because:

  1. For example, if you aim for a KTM 125 Duke (Displacement: 124.7 cc, Top Speed: 120 kmph), it's a great deal at Rs. 1.52 Lakhs (onwards). It is quintessential to know that making a higher initial down payment supports you, which reduces the debt burden in the future. Hence, you repay the loan in a shorter period.
  2. For aiming great speed at rugged terrains, opt for the KTM 390 Adventure (Displacement: 373 cc, Top Speed: 155 kmph) at just Rs. 3.11 Lakh (onwards), and avail a similar scheme. Finally, using a bike EMI calculator will help you know the exact amount you have to pay each month. As mentioned earlier, you can figure out a fixed amount compatible with your personal finance through this tool.

Things to Keep in Mind

  • Initial down payment while purchasing a two-wheeler usually ranges from 10% to 30%, depending on the vehicle's total value.
  • Zero down payment is an ideal option to consider before you zero in on a particular payment scheme.
  • Initial down payment for bike loan combines with other charges such as the processing fee on a bike loan, which cannot be waived off. Note, Bajaj Auto Finance offers up to 100% finance on bike purchases. However, the processing fee on the loan amount still must be borne by the borrower.


Your dream bike is just a gear away! Remember to calculate the expected monthly EMI payments. Take the help of a bike EMI calculator for an approximate estimate. Furthermore, leverage 100% finance provided by lenders like Bajaj Auto Finance on your preferred vehicle's value.

A lot depends on the credit profile of the customer. A nominal 2% to 3.5% of processing fees is included as other charges; rest assured! If you desire to own your dream bike, avail these affordable schemes at your disposal.

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