Zero Down Payment on Bike Loan: Eligibility & Process
When you purchase a high-value two-wheeler using a Bike Loan, you are usually required to pay a considerable percentage of the total cost as a down payment. While a zero down payment option for bike loans is unavailable at Hero FinCorp, you can cover the maximum cost through a two-wheeler loan by making a negligible down payment. It helps young bike enthusiasts to fulfil their dreams of owning a bike without disturbing their savings
What is a Down Payment?
When you buy something expensive, like a house or car, you have to pay a portion of the price upfront, called a down payment. This reduces the amount of money you need to borrow through a loan. The larger the down payment, the less money you have to borrow, which means less interest in the long run.
If you're wondering whether getting a bike loan with zero down payment is possible, we would like to inform you that it may not be possible. However, Hero FinCorp can provide two-wheeler loans of up to 95% of the bike's value to eligible applicants. Such applicants can make just 5% of the bike cost as a down payment and get the rest as a loan.
What is Zero Down Payment on a Two Wheeler Loan?
Banks and financial institutions provide loans for purchasing bikes or scooters. Typically, a bank loan only covers part of the cost of the two-wheeler, requiring the buyer to make a down payment.
A zero down payment bike loan offers a solution where customers don't have to bear any upfront financial burden. With no down payment, customers can acquire the vehicle once the loan is approved without making any initial payments. The only initial expense in zero down payment loans is a loan processing fee charged during the loan process.
Eligibility for Zero Down Payment on Two Wheeler Loan
To be eligible for a two-wheeler loan with 5% down payment and zero tension from Hero FinCorp, you need to meet the following -
Citizenship & Age
- You should be a citizen of India.
- You must be over 18 years of age.
Employment Status
- Both salaried and self-employed individuals can apply for this loan.
Experience
- Salaried Individuals:
- You should have been employed for at least one year.
- You should have at least six months of experience with your current employer.
- Self-Employed Individuals:
- You should have been in your current business for at least one year.
Monthly Income
- The minimum income requirement is Rs. 8000 per month.
Documents Required for Zero Down Payment Bike/ Scooty Loan
Here's the list of required documents for availing a two-wheeler loan from Hero FinCorp for buying a scooty or bike with just 5% down payment and zero hassle.
Two-wheeler Loan Documents Required for Salaried:
1. Mandatory Documents
- Duly filled loan application form
- Passport size coloured photograph
2. Identity Proof (any one)
- Driving Licence
- Aadhaar card
- Passport
- PAN Card
- ID Card issued by Central Government/ State Government/ PSUs
3. Residence Proof (any one)
- Driving Licence
- Aadhaar Card
- Passport
- Property or Municipal Tax Receipt
- Ration Card
- Utility Bill
4. Income Proof
- Salary Slips (last six months)
- Bank account statement of the last six months (salary account)
- Salary certificate (with name, designation, and authorised signatory)
- Form 16
5. Job Continuity Proof
- Job offer letter from the current employer
- Experience certificate from the previous employer
6. Age Proof (any one)
- Birth Certificate
- Passport
- PAN Card
- Driving Licence
These documents can help you get a scooty or electric bike with minimal down payment and zero hassle.
Two-wheeler Loan Documents Required for Self-employed:
1. Mandatory Documents
- Duly filled loan application form
- Passport size coloured photograph
2. Identity Proof (any one)
- Driving Licence
- Passport
- PAN Card
- Aadhaar card
3. Residence Proof (any one)
- Driving Licence
- Passport
- Aadhaar Card
- Ration Card
- Utility Bill
4. Office Address Proof (any one)
- Maintenance Bill
- Utility Bill
- Property Documents
- Rent Agreement
- SSI or MSME Registration Certificate
5. Business Existence Proof (any one)
- Copy of Tax Registration
- Shop Establishment Proof
- Company's Registration Certificate
6. Income Proof
- Last six months bank statement
- Recent Income Tax Return (ITR)
Why Is A Bike Loan With No Down Payment Advantageous?
A bike loan with zero down payment offers several advantages:
1. 100% Financing
2. Convenient EMIs
3. Minimal Processing Fee
4. Easy Documentation
5. Low-Interest Rate
6. Higher Loan Amount
How to Apply for a Two-Wheeler Loan?
To apply for a two-wheeler loan through Hero FinCorp, follow these simple steps:
- Visit the Hero FinCorp website and navigate to the two-wheeler loan section.
- Scroll down to find the 'Apply for a Loan' section.
- Fill in your personal details in the application form.
- Choose the specific 'Hero MotoCorp Two-Wheeler dealership' from where you intend to purchase the vehicle.
- Read and agree to the provided 'terms and conditions' by selecting the checkbox.
- Finally, click on the 'Apply Now' button to submit your loan application.
By following these steps, you can get a two-wheeler loan with zero hassles, covering 95% of the bike cost. Just make 5% down payment and take home your dream bike or scooter with 0% tension.
Those looking to buy a second-hand bike with zero down payment can take our Personal Loan and fulfil their need.
Conclusion
Now that you know the eligibility criteria, documentation requirements, and the advantages of a bike loan, apply now. We have also provided insights into the loan application process. So whether you're a salaried individual or self-employed, these details will help you make an informed decision when seeking financial assistance for your two-wheeler purchase. Remember to check the specific terms and conditions to ensure a smooth two wheeler loan application process. With these insights, you can confidently apply for a bike loan without hassle.
FAQ
1. Can I pay extra EMI for a bike loan?
Yes, you can make additional EMI payments for your bike loan. This helps you repay the loan faster and potentially reduce the interest paid over the loan tenure.
2. Is bike loan tax-free?
No, a bike loan is not tax-free. However, if you are self-employed, you may enjoy tax advantages when purchasing a two-wheeler on loan for business purposes. According to the Income Tax Act, you can claim deductions from your total taxable income for the expenses incurred in growing your business. It is advisable to consult a tax advisor to understand the tax benefits applicable to your situation.
3. Will a standalone own damage policy cover my two-wheeler if it's stolen?
Yes, Standalone OD Policy theft is covered, and you will receive compensation based on the insured declared value (IDV).
Disclaimer: The information provided in this article is intended for informational purposes only. Eligibility criteria can differ among lenders and may be influenced by the applicant's profile and creditworthiness. Please note that the details in this article might change after the publication of this article. Hero FinCorp cannot guarantee the approval or rejection of loan applications based on the information presented in this article.