What is a zero Down Payment Two Wheeler Loan?

Two-wheeler loan is usually sanctioned by making a down payment of 5-15% of the value of the two-wheeler while the bank finances the balance 85-95% of the loan. There are some banks and private lenders who provide 100% financing of two-wheelers on zero down payment so that you can buy your dream bike or scooter without paying anything upfront.

A down payment for bike loan requires you to have some liquidity at the time of purchase but in case you do not have funds for an initial payment, you can request the financial institution for a zero down payment. If you meet the eligibility criteria, the financial institution will pay the entire value of the two-wheeler as loan amount and you will avoid the hassle of shelling out anything from your pocket.

To be eligible for a zero down payment on a two-wheeler loan, you should have a good credit score with credit rating agencies as the financial institution will examine your credit score as well as current loans you are servicing. An outstanding credit history with no defaults in payments can get you a two-wheeler loan on a zero down payment.    

If you have a long relationship with the financial institution and your existing account has a good track record, chances are your financial institution will offer you a two-wheeler loan on a zero down payment and a better rate of interest.      

Must Read: Use 5 Tips to Pay Off your Two Wheeler Loan Faster