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Here’s How to Purchase Your Dream Bike on EMI without Down Payment

Bike purchase has for long been eased for Indians with financing options like two wheeler loans that several leading financial institutions provide against a set of eligibility requirements. It ultimately eases one’s finances and allows him or her to differ the payment of bike’s price until a later date through a financing arrangement. However, these traditional bike loans come with a catch which requires borrowers to make a percentage of the bike’s price as down payment, only after which the lender approves the remaining cost for purchase financing.

Thanks to increasing market competition and lending institutions aiming to make such financing more convenient and affordable, you can now purchase your desired model of bike on EMI without down payment. Below is given a detailed guide on the process and requirements related to purchasing your bike on EMI without needing to make any down payment. Let’s take a look.

Eligibility Criteria and Document Requirements for 100% Bike Finance:

Lending institutions lay down several criteria related to individuals’ personal, professional and income profile that allow them to screen borrower suitability for the purpose of bike loan approval. Following are some of the essential and common requirements lenders require you to fulfil for the approval of loan for bike on EMI without down payment. Note that fulfilling these criteria does not guarantee your approval for the advance but instead only make you eligible to apply for the necessary funding.

  1. Individual must be either a salaried or a self-employed person with a regular source of income.
  2. He/she must also fulfil the minimum monthly income requirement as per the state of residence and lender selected.
  3. One must also lie within the decided age range to be eligible to apply for the advance. Depending on whether you are salaried or a self-employed individual, your age requirement may differ. So, make sure to confirm with your lender before proceeding.
  4. For a salaried individual, employment with a reputed organisation with a minimum of 1 year experience in total and 6 months of experience in the current job is mandatory to confirm income stability.
  5. In the case of self-employed individuals, whether professional or non-professional, the current business or venture should be currently running with a vintage of at least 1 year.
  6. As EMI financing for bike also increases the lender’s risk, it is ideal to carry a credit score of not less than 700 to stand high chances of approval.

As for the paperwork needed, you would need to submit the following standard documents for the application processing to proceed.

  1. Identity proof, which includes any document carrying the user’s photo, issued by an authorised body, like PAN card, Voter ID card, Aadhaar card, Passport, etc.
  2. Proof of address, which shall be carrying complete current and/or permanent address of the individual issued by an authorised body. It can include documents like Aadhaar card, Voter ID card, ration card, passport, utility bills, etc.
  3. Income proof, which would differ for salaried and self-employed individuals. In the case of salaried individuals, income proof shall include salary slips for given number of months, bank account statements, Income Tax Return filed, etc.

This list of documents required to avail a bike on EMI without down payment is indicative only. The concerned lending institution may ask you to submit additional documents, if any, to confirm your eligibility for the advance.

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Further, you must also be well-aware of the factors that impact your down payment requirement laid down by the lender so that you can work on them to maximise chances of zero down payment bike loan approval. Some of them include the following.

  1. The market price of your selected bike model.
  2. The manufacturer and the bike model selected for purchase.
  3. An individual’s repayment capacity and the overall financial standing, including existing liabilities.
  4. His/her creditworthiness and credit history, which can be determined by the credit score assigned.

Along with these, one’s existing relationship with the lender also contribute to determining his/her efficiency in securing a bike on EMI without down payment. When planning to purchase a bike on EMI, you must thus take care of these factors in mind and proceed accordingly for improved chances of loan approval.

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