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Are you in a mental turmoil on whether you should buy your dream bike though you do not have much cash left in your hand? Your days to worry is finally over. You can have the bike you always wanted to and that too without making any payments initially. You can take a loan and then return back the money via EMI every month according to your comfort. This way, you never have to choose between your happiness and financial reality.
If you are a novice in the world of down payments, loan and EMI, this blog is for you. We will break every detail down to you so that you can take a quick scan to make your decision.
When you are making any purchase like a bike, it is a matter of a considerable expense. You might not be able to procure the required amount for buying the product. You may apply for a bike loan from a lender. In such a case, you have to pay at least 5% to 15% of the total amount of the vehicle. The rest will be spent by the bank you are taking the loan from. This payable amount by you while purchasing the bike is known as a down payment.
In this case, the lender you have approached for the loan will be paying the entire value of the bike you want to buy initially. This will be calculated as a loan amount. You will have to repay the loan along with interest in consecutive installments. The design of the instalment, including the rates and time period, can be customized according to your eligibility and the bank you are loaning the money from. The advantage of not paying anything at the time of buying the bike given to you by the bank is known as zero down payment.
Additional Read: Minimum Down Payment For Bike Loan
You have to meet specific criteria to avail that opportunity. Also, the bike loan interest rate varies from one financer to the other. So will the amount of EMI payable at the end of every month. It is always better to seek the interest rates from different dealers along with the terms and conditions before settling for the loan.
Zero down payment makes any purchase easier for the buyer since they do not have to pay a substantial cash amount instantly and still can start living their dream by riding the bike. The main aim behind this strategy by the financer is the comfort of the customer so that he does not need to cut off on the necessities.
But zero down payment does not include the charges of the proceedings of the loan amount and some other hidden costs which are unavoidable. But that is extremely minimal when compared to the lump sum amount of down payments.
The EMI amount may increase since you are not paying any down payment. It is wise to use the Bike EMI calculator to understand the amount you have to pay every month and whether you are okay with it. If you take a loan for a short period, your EMI amount will automatically increase.
If you are existing Bajaj Auto Finance two wheeler loan customer, you are most likely to get loan up to 100% i.e. Zero Down Payment. Also if you are working in a Corporate which falls on our Top 2000 list, you can also be considered for a loan up to 100%. Employees working in any Bajaj Group companies can also apply for Zero Down Payment loan scheme.