If you are on the lookout for lenders to make a loan application for bike purchase, you might have come across the word downpayment quite often. It is an important part of the terms and conditions of a loan and should be well understood. Downpayment is the amount of money you pay at the time of purchase of the bike. Before you apply for a bike loan, you will be required to make a down payment on bike loan. This amount will vary from one lender to another.
You need to scout the market for lenders and understand their terms and conditions. Some lenders have a down payment requirement as low as 10% of the cost of bike while many require you to pay 30% of the cost of the bike. If you have excess cash on hand, you can choose to make a higher down payment. However, if you want to make the most of your loan option, you can pay the minimum amount required. The loan will be processed only after the down payment has been made.
Any individual above the age of 18 is eligible for the loan. You need to fill up the application form and submit relevant documents. These include an identity proof, address proof, income proof, passport sized photographs and invoice of the bike you want to buy. Once the documents are in place, your loan application will be approved within 24 to 48 hours. After making a down payment on Hero bike loan, you will be able to ride your new bike home and repay the loan amount over the tenure.
Lenders offer a high loan amount and have flexible repayment tenure. It makes the process of buying a bike easier and convenient. It is important to compare the interest rates before you make a final decision. Different lenders offer different interest rates and it helps to choose the lender with low interest rate and a longer tenure. You can use the EMI calculator to estimate the amount of EMI payable on the loan. The calculator is available online and requires you to provide the loan amount and tenure, it will show the estimate EMI amount in no time. You can change the inputs until you reach the optimum output. You need to consider the monthly outflows before you agree on an EMI amount.
It is important to thoroughly understand the terms and conditions of the loan before you sign on the dotted line. Many lenders have a prepayment option which allows you to close the loan well in advance. It will also help save the amount of interest payable on the loan. A two wheeler loan is specially designed to help turn your dreams into a reality. If you plan well and choose the right lender, you will be able to own a brand new bike without burning a hole in your pocket. You can put an end to your worries about financing the bike purchase.
