How Does a Zero Down Payment Bike Loan Help You?

Published on Jan 20, 2020Updated on Oct 31, 2022

How Does a Zero Down Payment Bike Loan Help You?

Nothing beats the thrill of riding your own bike to places; be it commuting to the workplace or going on a road trip. So, to make both your buying and travel journey a piece of cake, you can consider applying for a zero down payment bike loan, wherein you can get the bike without spending a single rupee from your own pocket. Sounds unreal? But, it is absolutely true. A Zero down payment two wheeler loan only asks for a minimal processing fee on the loan amount but gets you 100% finance for the vehicle’s cost.

What is a Down Payment on a Loan?

A down payment is an initial contribution that you make from your own pocket towards a high-value purchase such as a vehicle, house, etc. In case of a two-wheeler loan, the lender maintains a specific margin (the difference between the vehicle cost and the approved loan amount) before disbursing the funds to you. The margin could be anywhere between 5% and 15% of the actual cost of the motorcycle. Thus, the lender then provides 85% to 90% of the scooter’s value as funds.

For example - The bike which you plan to buy costs Rs 85,000. If the down payment for the bike is 10%, then you will have to pay Rs 8,500 upfront. The remaining amount would be funded by the lender in the form of a bike loan.


What is a Zero Down Payment Bike Loan?

In case of a no down payment two wheeler loan, the financial institution does not ask for your own financial contribution. The lender rather finances the complete cost of the vehicle. Thus, you can expect the purchase to be 100% financed by the lender. There is no worry to have additional funds at hand or liquidity to borrow funds. Also, you can enjoy the freedom of choosing the motorcycle brand and make before applying for the funds.

Features and Benefits of a Two Wheeler Loan

Given below are the features and benefits of applying for a zero down payment bike loan:

  • Apply with the lender, and get an instant approval
  • Self-employed and salaried individuals can apply
  • The loan amount could be as high as Rs. 30 lakhs
  • Interest rate is in between 8% and 28% per annum
  • A customized and flexible repayment schedule is available
  • Minimal documentation and quick disbursal

Eligibility Criteria of Two Wheeler Loan for the Borrowers

Below-given are the eligibility criteria for zero down payment two wheeler loans in India:

  • As a borrower, you must be at least 18 years old at the time of making the loan application
  • You must not be older than 65 years of age at the end of the loan tenure
  • You should be residing in the city for a minimum period of 1 year
  • You must have at least 1 year as work experience

Documents Required for the Two Wheeler Loan Application

Listed below are documents for a zero down payment two wheeler loan:

Identity Proof (any one of the mentioned):
  • Voters Id card
  • Passport
  • PAN card
  • Driving license
  • Photo credit card (front and reverse)
  • Copy of employment ID with your photograph
  • Ration card (if it has your photo attached)
Address Proof (any one of the mentioned):
  • Letter from the company for provided accommodation
  • Property purchase agreement
  • Rental agreement
  • Sale deed
  • Driving license
  • Voters Id card
  • Passport
  • Gas connection bill
  • Electricity bill
  • Telephone bill
  • Life insurance policy
  • Ration card
Income Proof (any one of the mentioned):
  • Partnership/Proprietorship/Private Limited firms have to submit the salary certificate. However, the proof will be accepted only if the salary certificate contains details of deductions, along with the designation and name of the authorized signatory
  • Salaried individuals must submit latest salary slip or salary certificate (with deductions, if any, mentioned)
  • Self-employed individuals can submit the latest Income Tax Return

How to apply for a Zero down Payment Bike Loan?

Below are steps on how to apply for the loan:

  • Get in touch with a representative from the lending institution
  • The representative will understand your needs and give details about the zero down payment bike loan
  • If you are interested in the borrowing product, then you can fill and sign the loan application form
  • Submit all the required documents
  • After verification of the documents and the loan application, a lending decision will be quickly taken by the institution



A zero down payment two wheeler loan is the best way to finance your motorcycle because it does not make you shell any money of your own at the initial stage of purchasing the bike. You can choose from the different repayment schedules which are available and repay the loan amount in easy EMIs.

*Terms and Conditions apply. Loans are disbursed at the discretion of Fullerton India.

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