Know the Meaning of 0 Interest Two Wheeler Loan and Its Benefits

The availability of bike loans has simplified bike purchase financing to a great extent. These advances has literally worked as game changers in the two wheeler financing segment. But, do you know that the cost of your bike can be financed up to 100% without any need for down payment. While 0 interest two wheeler loans still remain a couple arms away, financial institutions have sure introduced a much more interesting and beneficial loan arrangement for aspiring bike owners for 100% financing of their vehicles’ price.

Thus, if you are not willing to pay any amount upfront as down payment during bike purchase while still purchasing it through external financing, you may as well do so now. The loan option is commonly known as zero down payment two wheeler loan, and comes with a host of borrower-friendly features. Let’s find out in detail what these loans comprise and how they work.

Understanding the Down Payment Based Financing Structure

Under the secured loan framework, financing is extended based on the LTV determined by the lender. LTV or loan to value ratio refers to a percentage representation of the total financing available as against the cost of an asset to be purchased. In cases where asset purchase is made post loan approval, the remaining amount must be met via upfront self-financing known as down payment. So, in the case of bike loans, whether you are availing a two wheeler loan in Indore, Ranchi, Kolkata, Patna, or any other city, you need to first make the down payment to secure the remaining amount.

Meaning of Zero Down Payment Based Bike Financing

Now that you know the structure of down payment based financing, understanding a zero down payment two wheeler loan should be simplified. Also, as against the general notion of 0 interest two wheeler loan availability in the market, the best case financing you can get is a zero down payment loan, also known as 100% bike finance.

Under this financing framework, an aspiring bike owner can raise as much as 100% of the vehicle’s cost as funding. As there is no down payment to make and the entire cost is available as loan, you also do not need to worry regarding the self-financing aspect, which is, in fact, entirely eliminated in this loan structure.

Top Advantages of 0 Down Payment Two Wheeler Loans

Some top benefits that come with availing a zero down payment bike loan include the following.

1. No strain on savings

The first and foremost benefit of 100% bike finance is that it releases the borrower of any strain on their savings. Thus, the borrower can avail funding knowing fully well that their personal finances are not at stake. Given that all you need to pay additionally is the interest accrued and the additional charges, the bike you purchase is literally a low-cost deal.

2. Quick financing

Lenders usually provide these loans to eligible individuals within a few minutes of application. Primarily, it is because they hold impressive borrower profiles and the risks of non-repayment or delay are minimised.

3. Funding of high value

Along with 100% financing, these loans also come with a high financing cap. Such a high loan quantum allows the individual to purchase a bike model of his/her choice. While these loans provide complete bike financing, you must note that lenders require borrowers to meet all eligibility requirements accurately as the risk of the loan provider increases. Nevertheless, you can still get a low-interest bike loan under this framework, if not a 0 interest two wheeler loan, if your borrowing profile surpasses the minimum criteria and you hold a credit score of above 700.

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