Two-wheelers are an important source of communication in India. Whether it is an urban area or rural region, people use two-wheelers to make their commute convenient.
Considering the popularity of bikes in the country, financial providers have made two wheelers loans more flexible and accessible. Today they are available in 100% financially known as zero down payment. And in this article, we are sharing all the important information related to the same.
What Is A Zero Down Payment Two Wheeler Loan?
Generally, when you take a loan for a high-value purchase like a bike or car, you need to pay a certain percentage of the vehicle value as a down payment. The percentage can range between 5% and 15% of the bike amount. The rest of the amount is financed by the financial company as a loan.
The zero down payment two-wheeler loan is different from conventional vehicle loans. In this, the buyers do not have to pay any down payment. This means you can walk about the bike showroom without paying a single rupee. There are certain eligibility criteria that you need to fulfill for this type of loan.
What Is The Eligibility Criteria For A Zero Down Payment Two-wheeler Loan?
Similar to Other Kinds of loans, to avail zero down payment two-wheeler loan, you have to comply with certain requirements. Following are some of the criteria that you need to fulfill-
- Citizenship of India
To be eligible for a zero down payment loan, the first criteria is to be a citizen of the country. You will be asked to provide address proof and identity proof to verify your citizenship of the country. Your aadhaar card, PAN card, voter ID, driver’s license, electricity bill, etc., can be provided to prove your identity and citizenship.
- Age Requirement
To be eligible for this kind of loan, you have to be between the age of 21 years and 60 years. 21 is the age when most people start earning, and 60 is the retirement age.
Any loan that you take is given based on your earning capabilities. You must have a steady income to be able to get this loan. To show the same, you have to provide the financial institution the bank statement for the last three months. You can also provide salary slips for the last three months. In case you are self-employed, you need to show the latest ITR. The loan amount is primarily based on your earning capacity.
- Credit Score
A credit score is another important factor that determines your eligibility to get the zero payment loan. The financial providers will do a background check to determine your credit score. This determines how timely you have paid your previous debt. Typically to avail zero down payment loan, your credit score must be above 750.
The Impact of Eligibility Criteria
All these requirements directly impact your loan interest rate and EMI calculator. The higher the risk for the provider, the more will be the interest charged. You can use an online bike EMI calculator to determine what you will be paying based on the requirements.
Zero down payment loans are a convenient way of acquiring financial assistance to get your desired two-wheeler loan. Many financial providers are offering this type of loan. However, you have to research thoroughly and find the best loan provider for yourself. Do not fall for the overhyped sales pitches. Instead, carefully assess each element of the loan, look at their criteria, and assess your financial condition before making a commitment.