It is not very unnatural to explore financing options when it comes to buying a motorcycle. Motorcycles are a very popular and preferable mode of transportation in India. Amidst the recent pandemic situation where people are switching to private means of transport, two wheelers are definitely the most practical and sustainable option owing especially to the nature of the Indian roads and traffic.
That being said, Hero is one of the most popular two wheeler brands and a popular choice amongst bike enthusiasts as well as people looking to buy a great bike. When buying a Hero bike and looking for a two wheeler loan in New Delhi, the first question that may come to your mind is:
“What Will Be The Hero Bike Down Payment Amount?”
That is quite natural because of the fact that the down payment amount is the amount of money that you will have to arrange for at the time of purchasing the bike. Let us take a look at how a bike loan works to better know how much Hero bike down payment you will need.
How Two Wheeler Loans Work?
Two wheeler loans are right now the most popular way to buy a bike and with increased availability and easy accessibility of such loans, more and more people are opting for bike loans when purchasing a two wheeler. A bike loan works in a specific way and regardless of the lender and their specific terms, there are some general features of a two wheeler loan in New Delhi.
When you take a bike loan from any lender, they will provide only a certain percentage of the total cost of the vehicle as the principal loan amount. The remaining amount of the vehicle’s price is known as the down payment. For most lenders including banks and NBFCs, the down payment of a two-wheeler loan can range anywhere between a minimum of ₹10,000 to ₹100,000.
The down payment amount invariably determines the principal amount of loan sanctioned by the lender. It is quite obvious that the higher the loan amount is, the lower will be the down payment and lesser the approved loan amount by the lender, the higher will be the down payment that you will have to make at the time of purchasing the bike.
It must also be kept in mind that a higher loan amount will mean a higher amount for EMIs and a higher down payment will reduce the amount you have to pay in the form of EMI every month, as the loan amount will be reduced.
How Much Will You Have To Pay As Hero Bike Down Payment?
There are some important factors that determine how much down payment you will have to make when purchasing a bike with two wheeler financing. The amount of loan sanctioned by the lender determines the amount you will have to spend for down payment. The factors that determine the loan amount are:
- The cost of the bike is the first and foremost thing that determines the loan amount. In general, most lenders will offer a loan which will leave a down payment amount that will be anywhere around 15% to 30% of the bike’s price. This is the general standard followed in case of most bike loans and by the majority of lenders in the country.
- The credit score and profile of the applicant determines the loan amount they are eligible for. A good credit score with good credit history means the loan amount sanctioned will be higher for a certain applicant.
- The applicant’s repayment capability and capacity will influence the lender to lend a suitable amount.
That brings us to the end of this blog and we think now you have a more clear idea about the amount you will have to pay for Hero bike down payment! Choose the right lender and make sure the repayment tenor and terms match your repayment capabilities. In short, never over borrow!