Minimum Down Payment Required for a Bike Loan

Down payments can have a major impact on your loan costs and the instalment amount you need to pay each month. You can find loan options that come with some of the lowest down payment requirements on Bajaj Markets. Such loans can help you finance the purchase affordably. Here is everything you need to know about these loans and how to get them:

A down payment is a portion of the bike’s total cost that you need to pay directly to the seller when buying a bike on loan. The remaining amount is covered by the loan. So, the higher the down payment you make, the lower the loan amount. A down payment also directly impacts the EMIs and total cost of your loan. To understand this, consider the following example:

 

Let’s say that the cost of the two-wheeler you purchase is ₹3 Lakhs, and the minimum requirement for the down payment is 10%. You will then have to pay a ₹30,000 down payment on the bike loan. In this case, the loan amounts to ₹2.70 Lakhs. Assuming you took the loan at an interest rate of 0.99% p.a. for a tenure of 5 years, the EMI would amount to ₹4,614.15. 

 

Now, let’s say you opt for a bike loan with zero down payment, the loan amount would be ₹3 Lakhs. This change in loan amount would result in a higher instalment amount of ₹5,126.83. This means that there will be a subsequent increase in the interest charges of the loan, resulting in a higher total repayment cost. While you can opt for a zero down payment bike loan, it is advisable to make a down payment to reduce your loan amount and the interest payable.

 

You can check several such scenarios within seconds with the help of a bike loan EMI calculator. This online calculator can help you evaluate the change in EMIs and the total borrowing cost as the down payment changes. 

The bike loan down payment can range from about 5% to 30% of the bike’s value. Note that certain lenders finance 100% of the two-wheeler’s cost, which means they require zero down payment. The minimum down payment for a bike offered to you will depend on your income level and the kind of bike you wish to purchase.

When looking for a bike loan, you can compare different offers and choose the one that allows the lowest down payment on a bike purchase. Here is how you can opt for an offer with a low down payment on a bike loan on Bajaj Markets:

• Click on the ‘CHECK OFFER’ option on this page

• Provide your personal details like age, date of birth, mobile number, etc.

• Choose the lender you wish to get the loan from

• Enter your preferred loan amount and tenure

• Cross-check all the details entered and submit the loan application

 

Your application will be verified, following which, a representative of the lender will contact you for further proceedings.

Here are the factors that influence the minimum amount payable as a down payment when you purchase a bike with a two-wheeler loan:

• Loan Amount: You may have to make a higher down payment if you avail of a higher loan amount

• Credit Score: If you have a higher credit score, the lender may be more inclined to allow you to pay a lower down payment 

• Bike’s Model: If you decide to buy an expensive bike, lenders will require you to pay a higher down payment

• Policy of the Lenders: The down payment policies will differ based on the lender you choose, with some even offering zero down payment facility

On Bajaj Markets, you can easily compare different two-wheeler loan offers and can even get loans that finance up to 100% of the bike’s on-road cost. Not only that, you can also apply for the one that best suits your repayment capabilities.