Two wheeler loans have become immensely popular with the middle class segment of India as it gives them the leverage to own a bike of their choice at low interest rates. If you have budgetary constraints but want to buy a two wheeler to make commuting easier then availing a bike loan is the best option for you. Banks and private lenders want you to make a certain down payment for a bike loan to ensure trustworthiness of the borrower and the lender can cover or minimize the losses in case the borrower turns out to be a defaulter.
While most banks prefer to take a certain amount of down payment before sanctioning the bike loan, there are some banks and private lenders who offer 100%* finance for two wheelers which means you can get a bike loan without down payment. With nominal processing some banks do not ask for down payment from the existing account holders on some specific models while Some lenders provide 100% finance on on-road price of the vehicle and some of them also cover the registration fees insurance charges. if you can provide required eligible documents to the lender with good repayment track, it is a lot easier to get complete finance on your favorite bike.
You need to have a good credit score with credit bureaus to get a bike loan without down payment. If you have a good credit score of 750 and above, it is easier to get low interest rate and higher loan amount. Your monthly income is also a key factor in securing a higher loan amount. If you have higher income and work in a listed company, it is easier to get maximum funding on your two-wheeler loan. While all borrowers may not be eligible for a 100% financing, it is always possible to get higher loan amount by meeting certain eligibility criteria. Bike loan calculator available on lender’s website helps you in planning your monthly EMIs.