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Know How to Own a Bike on Zero Down Payment

If you are looking to buy a bike but making down payment seems tad weighed on your pocket, looking out for alternative financing is an option today. Here, you would be able to understand how you can ensure purchase of your desired bike on zero down payment. But first, let’s discuss why you are even considering opting out of down payments.

There may be many reasons for that. First being the need for smart expenditure of hard-earned money. Moreover, if you have the option to get a bike without any down payment, then why even bother considering it?

In this article, we will discuss in detail about the mandatory documents, monthly EMIs and other essential details involved in getting your dream bike without the necessity to pay any upfront charges.

What is Down payment?

In most circumstances, when individuals apply for a loan for making high-value ownership like a car or a bike, they are required to pay anywhere between 5% and 20% of the purchase value upfront. This upfront paid amount is called the down payment. The lender covers up for the rest 80% to 95% of the value as a loan.

What are the Benefits of Getting a Bike with 100% Finance?

Here are some top reasons why you can embrace 100% financing for bike purchase.

• The purchaser need not worry about spending a single penny from owned money.
• Monthly income is safe and can be used for clearing EMIs.
• In worst case scenarios, if the purchaser fails to make timely EMI payments, the lender may even reclaim ownership of the bike hypothecated. In such a case, the only loss borne by the purchaser is the number of EMIs paid and no loss of down payment.

Eligibility Criteria for Financing a Bike on Zero Down Payment.

There are some prerequisites to consider before availing of the benefits of zero down payments.

1. Minimum and maximum age: The applicant must be between 21 and 60 years of age.
2. Proof of income: He/she needs to produce document proving a stable source of income.
3. Employment status: Applicant must be employed or in business for at least 1 to 5 years.
4. Type of employment: Salaried, business owner, self-employed professional (Doctor, professor, teacher etc.) are eligible to apply.
5. Minimum net monthly income: Usually Rs.10,000 or above.
6. Credit score: Above 750.

One thing to keep particularly in mind is to have a good CIBIL score; the higher your credit score, the better your chances of availing 100% financing for bike purchase. After all the discussed prerequisites, let’s now talk about the required documents.

Following documents are mandatory to avail full finance for your bike purchase.

1. PAN card.
2. Aadhaar card.

• ITR (Income Tax Return) filed for the last 2 years.

1. Passport size photographs.
2. A savings account for loan disbursement.
3. Salary slips of the last 3 months for salaried individuals.

• For self-employed Individuals, ITR will suffice.

To sum up, it is now safe to say that any individual seeking zero down payment option on their new bike purchase can now easily do so with the right eligibility. If all the criteria mentioned above are fulfilled, then the applicant can easily own his/her dream bike on zero down payment.

by Hero FinCorp on 2021-09-27 06:12:24