If you’re looking to purchase a new bike, a hurdle you may face is a dearth of funds. A bike loan can bring your dream one step closer to you. With a two wheeler loan, you can make payments in equal or fixed installments over an extended period of time.
In this event, the bike company is known to take a minimum or initial amount at the time of purchase. This is known as the down payment made by the consumer. Financers usually provide complete or 100% bike amount resulting inzero down payment bike loan. In general, down payments vary depending on the credit score and finances of the buyer.
The key points listed below will shine some light on the factors involved in thedown payment for a bike loan.
Cost of Bike
Down payments for bikes range from 10% to 30% of their value. Many customers prefer paying this minimum amount so that they can avail EMI (equated monthly installments) at lower costs and lighten the financial burden in the future.
The capability of the individual to pay back the entire amount of the bike is an important factor for finalising down payments and EMI. If the customer profile is well approved by the lender, he/she can avail zero down payments on the bike purchase and lenders can offer lucrative payback schemes.
Additional Read: What is a zero down payment two-wheeler loan?
An individual’s creditworthiness puts his credit score in a range of 300 to 850. There are many aspects that develop a credit score, such as the number of debts, open accounts, successful transactions, and history of repayments. This score plays a significant role in one’s financial life. A credit score of 670 and above is considered good and a score of 800 and above is excellent. It makes way for better interest rates and higher loans. There are a number of ways to improve your credit score, and maintaining a decent payment history with minimal or zero debts is the best way to do so. It boosts the consumer’s chances of getting a low initial deposit on big buys and eases financial burden to a great extent.
Two wheeler loans have become incredibly popular in recent times with the increased demand for the commuter, transport, and heavy-duty bikes. Consumers are able to save time and money with these machines and look for attractive bank loans with low-cost EMIs and down payment to purchase their two wheelers.
Additional Read: The Ideal Tenure For Your Two-Wheeler Loan
Do you desire a zero down payment bike loan? Tata Capital offers loans for finance the entire value of the bike up to vehicle price of Rs 1.5 lakh. Also, get attractive bike loan interest rates. You can make a hassle-free purchase and own your dream bike today. Contact us at Tata Capital today and let us turn your dreams into reality!