How Much Minimum Down Payment is Required to Buy a Bike?

A bike loan is one of the best ways and has become immensely popular in India, which motivates many people to own a bike without worrying about finances. Several banks and the financial institution offers bike loans at the most attractive rates and low-cost EMIs. While applying for a bike loan, a bike insurance policy is a mandatory obligation. Keep the below things in mind before applying for a bike loan.

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What is a Down Payment in a Bike Loan?

When you apply for a loan to buy any high-value asset like a vehicle, including a bike, the financer will ask you to pay a down payment raising between 5% - 15% of the ex-showroom price. The remaining 85% - 90% amount is lent by the financer. A down payment in a bike loan refers to the availability of funds required during the purchase of the bike.

What is the Minimum Down Payment for Two-wheeler Loan?

Bikes are the convenient and most popular mode of transport in India. Even the data says one in three households owns at least a two-wheeler in India. The down payment for a bike loan is determined by the below factors-

  • Bike's Price
  • Make and model the bike
  • Credit history of the borrower
  • Current repayment capacity of the borrower
  • Previous relationship with the financer

However, the required down payment for a two-wheeler loan is between 10% - 30% of the price of the two-wheeler. Also, the amount is decided by the financer's policies and depends upon the borrower’s credit history & previous relations with the financer. The financer has some lending policies that you must go through once.

Also, as a borrower, you can make a larger down payment to reduce your financial burden, and the financer allows you to repay the loan in a shorter period. To know all the details about the down payment for a bike loan, you can visit the official website of the financer or call on their customer care number and gather the updated margin & interest rates of the bike loan.

Is it Mandatory to Obtain Bike Insurance for Sanctioning Bike Loan?

Yes, a bike insurance policy is a value-added benefit that is also a mandatory obligation. No financial institution or bank will sanction your bike loan until you get the bike insurance policy.

Moreover, according to the Indian Motor Vehicle Act, 1988, any two-wheeler plying on the Indian roads must have at least a third-party bike insurance policy. However, it is highly recommended to obtain a comprehensive policy as it gives you protection against several unforeseen risks, including theft, fire, natural & man-made disasters, third-party liabilities, etc.

Even the financer's name is mandatory to be endorsed in the bike insurance policy until the loan is paid off. Hence, obtaining bike insurance makes a lot of sense in every form.

With several digital insurance companies offering bike insurance policies, you can avail the benefits of bike insurance. You can also visit the official website of Policybazaar Insurance Brokers Private Limited to get the best plan at the most affordable premium. Also, the policy is instantly generated after paying the premium, and the soft copy is made available to your registered email id.

What is a Zero Down Payment in a Bike Loan?

You can apply for a bike loan with no down payment. Here, the financer covers the entire cost of the two-wheeler you want to buy. In such a case, there won't be any down payment required other than the processing fees.

Benefits of Zero Down Payment

Let's discuss some of the benefits associated when you apply for a bike loan with zero down payment-

  • Easily manageable EMIs, and you do not have to worry about keeping some money aside to buy a new bike
  • Less documentation
  • Your cash flow remains unaffected
  • You have the flexibility to repay the loan amount in 12-48 months for two-wheelers.

Who is Eligible to Avail Zero Down Payment?

Here are some conditions that you must meet if you are looking for a bike loan with a zero down payment option-

  • The minimum age of the potential borrower should be between 18-21 years old, and the maximum age is 65 years old.
  • The person should be an Indian citizen.
  • A salaried or self-employed person with a minimum work experience of 1 year. Also, most banks or financiers ask for a minimum salary of Rs 12,000/month.
  • As a business owner, your business should be running for at least 2 years.
  • If you already have taken the loan, submit all the details to the bank/financer.
  • An excellent credit score
  • Bounce bank cheque history in the past
  • Submit the residential address (a place where you must have lived for at least a year). In case you have to change the location, submit the required documents.

Documents Required for a Bike Loan

Here is a list of mandatory documents required for a bike loan-

  • Adhaar card, PAN card, voter ID card, passport, etc. for identity proof
  • Adhaar card, utility bills, etc. for address proofs
  • Income tax returns, credit score, salary certificate, and bank account statements as income proof
  • Other documents asked by the financer for KYC.


You can easily apply for a bike loan if you meet the eligibility criteria. However, you need to submit all the required documents & application forms to the financer for conducting the verification process. The financier will only accept your bike loan application if all of the information provided by you is valid. Moreover, do not forget to obtain the right bike insurance policy for a hassle-free loan sanctioning process.

Written By: PolicyBazaar - Updated: 19 July 2022
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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