When buying a two-wheeler, the required down payment usually ranges from 10% to 30% of the vehicle’s value. Although some lenders offer 100 percent financing on the value of the vehicle, your ability to obtain it is contingent on your credit history and relationship with the lender.
The amount of money you are required to deposit on a two-wheeler loan is determined by the lender’s policies. A down payment of 20% of the cost of the vehicle is usually required by some lenders. The lender usually demands a down payment to reduce the risk of lending. In case the borrower is not able to pay his Bajaj finance Two wheeler loan EMIs properly, the lender will still have some percent of the down payment to rely on.
Making a larger down payment reduces your debt burden and allows you to repay the loan in a shorter period of time. You will also be entitled to comparatively lower EMIs and lower interest rates if you make a considerable down payment for your Bajaj Finance bike loan.
What is a Down-Payment for a Two-Wheeler loan?
When you take out a loan to buy a high-value item like a car or a two-wheeler, you are usually asked to pay a down payment that ranges from 10% to 30% of the total cost of the vehicle. The certain amount that you pay is referred to as the down payment. The bank lends the remaining 80 percent to 90 percent of the amount. A down payment necessitates the availability of funds at the time of purchase. Some lenders may give you a bike loan that is completely financed. It varies, however, depending on the lender and its policies.
It is referred to as a zero down payment bike loan if you do not make any down payment and the lender provides you with 100 percent financing of the two wheeler loan.
Factors Affecting the Down Payment for a Bike Loan
Bikes are a famous vehicle amongst the youth of the country. Some lenders in the market are providing 100% financing on bike loans, to fulfill the long awaited dream of the applicants having a luxurious bike. You can get bike loans on zero down payments on selected models. However, if you are making a down payment, which is usually 10% to 30% of the loan amount or the cost of the vehicle, you need to be aware of other factors. There are some of the elements that affect your bike loan’s down payment. Have a look at these-
- The cost of the bike or the two-wheeler
- Model of the vehicle
- Your credit score or credit history
- Your present repayment capacity
The Bottom Line- How to Apply for the Bajaj Finance Two Wheeler Loan
You can apply for the Bajaj finance two wheeler loan in four simple steps-
You need to fill the application form for the two wheeler loan on the official website of Bajaj Finance.
Then, fill in all the required details of the vehicle you want to buy.
Also, mention your personal and financial information so that the lender can determine your repayment capacity and credit history.
Finally, submit the application form and know the bike loan amount you are eligible for.
You can also use the Bajaj Finance Two Wheeler Loan EMI Calculator to determine and calculate your bike loan EMIs on a prior basis. This will help you to avoid loan defaults and choose the appropriate EMI based on your expenses and repayment capacity.