You can have the bike you always wanted to and that too without making any payments initially. You can take a loan and then return the money via EMI every month according to your comfort. This way, you never have to choose between your happiness and financial reality.
This blog is for people looking to buy property. Whether you are an experienced or a novice, we have laid it all out for you so that you can take a quick scan and make your decision!
What is Down Payment?
When you are making any purchase like a bike, it is a matter of considerable investment. It is mostly done during the time when you cannot afford to spend your entire savings on buying the product. You may approach a lender for borrowing money and pay as much as 5% to 15% of the total amount of the vehicle. The rest will be spent by your bank or any other financial institution. This payable amount by you while purchasing the bike is known as down payment.
Also Read: How To Improve Credit Score After Credit Card Settlement?
What is Zero Down Payment for a Two-Wheeler?
You should also understand that you need to have enough savings to meet the installments otherwise, you will not be able to make sufficient payments. But, with a zero-down payment option, they are asking less upfront and giving more interest at the end of the agreement.
Credit scores vary from lender to lender, so it’s always best to check their credit and EMI rates before signing on the dotted lines. Also, if you’re planning to buy a bike, you’ll need to evaluate each lender’s financing options by comparing interest rates and monthly payments in order to avoid ending up paying more than you bargained for.
Zero down payment bike loan makes any purchase easier for the buyer since they do not have to pay a substantial cash amount instantly and still can start living their dream by riding the bike. With these conditions, the finance company gives you a low interest rate at 18%. The main aim behind this strategy by the financer is the comfort of the customer so that he does not need to cut off on the necessities.
Zero down payment is a great way to get a home loan without any money down. It gets rid of the high interest rates that come along with a traditional mortgage. But zero down doesn’t mean no fees–there are some fees that you pay as part of your loan.
EMI Hassles
When you take a loan for the bike, you will have to pay an amount every month. The EMI amount may increase since you are not paying any down payment. It is wise to use the Bike EMI calculator to understand the amount you have to pay every month and whether you are okay with it. If you take a loan for a short period, your EMI amount will automatically increase.
Eligibility Criteria
If you have an existing Muthoot Capital two-wheeler loan, you may be eligible for a loan up to 100% i.e. Zero Down Payment. If you work in a Corporate that falls on our Top 2000 list, you can also be considered for a loan up to 100%.
