Minimum Down Payment For Bike Loan – “9 Things You Need To Know”

You may just aware of how people are so crazy and habitual in needing bike and motorcycle. So here I will explain about Minimum down payment for bike Loan

Before narrating about the topic, I would like to show you some statistical data below

statistical data for bike purchasing history
bike purchasing history from 2010/11 to 2017/18

on this above graph, you can assume that how the number of bike purchasing is growing year by year.

As far as reality is concerned, the year ‘2010-11’ motorcycle buyer was 11 lakhs but wherein ‘2017-18’ buyers touched 20 lakhs number. It means almost more than 9 lakhs bike selling were added in ‘2017-18’ as compared to ‘2010-11’.

So there is an immense growing bike purchasing in India and people are purchasing the bike. After all, if Bike is selling, then how do they purchase bike cash or finance.

Here I have a report that how many bikes are selling through cash or finance through the below chart.

cash vs finance in two-wheeler
Source-report from Analysis in L&T Finance

On the above, the cash percentage is 42 and Finance percentage is 58, it means people prefer to buy on Finance.

It is not possible for everyone especially in India that people would purchase a bike on cash that’s why they choose to buy a bike on loan basis.

In the end, they don’t want to wait for a long time for arranging a long sum amount to buy a bike instead of they prefer to choose the finance option.

At this moment, the question may arise how much amount should we pay for taking a vehicle or what should be Minimum Down Payment for Bike Loan. That’s why people would comfortably take a bike in the minimum down payment and with a good loan Interest rate

In this Blog Post, I will describe 9 things you surely need to know about Minimum Down Payment For Bike Loan before purchasing a bike

1. What is the real meaning of minimum Down payment for a two-wheeler loan

minimum Downpayment for bike loan

First, when a customer wants to pay some partly amount of vehicle and rest amount to be financed is considered as Down payment

Second, when a customer pays down payment and when the amount is lower than the normal DP amount is considered as a minimum down payment

For Instance-Suppose a bike price is 62000 and customer want to pay Rs.20,000, so a down payment ‘Rs.20000’ wouldn’t consider as a minimum down payment. But If It is same Down Payment – Rs.20,000 and vehicle cost is Rs.100000 then it will be considered as a minimum Down payment.

Why we should assume that Rs.20,000 is regarded as Minimum downpayment, because of 10% of Vehicle price is a minimum down payment, Second 10% or below 10% of the vehicle price will also be considered as a low downpayment.

Notice- I state that all of the above information is not the pure definition of a minimum down payment for a bike loan. But I just explained my realization of my experience in the two-wheeler finance career in L&T Finance.

2. Can u buy a bike on a minimum down payment price?

Yes, you can, of course, buy a bike on a minimum down payment but under certain condition. Banks Or Any financial institution can permit loan when they would satisfy the criteria and eligibility.

Many Banks and Financial industry have their certain rules and regulation to sanction two-wheeler loan with certain criteria. So It’s totally dependent upon the profile and credit history of the customer.

So many financial industries accept Minimum TW Down Payment by considering based on 2 factors such as
1- profile and credit score of the customer
2- Based on Criteria and norms of Financial institution

In conclusion, If a customer has a good credit score and his/her profile match with the certain criteria of Financial institution, then he will be allowed to get the Minimum down payment for a bike loan.

3. What are the criteria to avail the bike on low down payment

Criteria for minimum down payment for Bike Loan

Yes, To avail the bike on minimum down payment requires obvious criteria and document.

List of criteria and documents required

  1. Customer should be an age of minimum 21 and maximum of 65
  2. Customer should have a good credit score
  3. They should have a good credit history
  4. A consumer should have income proof for availing lower down payment
  5. Financial institutions or Bank may require field verification for approving the loan in case of minimum down payment
  6. Some financial institution may provide a special scheme for a specific vehicle for specifically chosen as a minimum down payment

Notice- The above information doesn’t include same criteria for all financial institution or Banks.

4-Difference between lower down payment and maximum down payment

If the consumer want to take the vehicle on above the 20% of vehicle value is not normally considered as a minimum down payment

So in detail example

Minimum Down payment

  • Down payment Doesn’t more than 15% of the vehicle Value
  • Here Down Payment Could be zero DP on bike value
  • In the case of Minimum DP, detail Documentations required

Maximum Down Payment

  • Down payment value is more than 15% of the vehicle value
  • in case of Maximum DP, there could not be any zero DP
  • In of Maximum DP, Normal documentation required


5. The Interest and fee for Minimum DP to BIke Loan

Interest and fee for minimum Down payment for Bike Loan

Interest and fee aren’t the same for all bank and financial institution. But there is almost specific interest and the fee which is taken for the minimum DP, let’s look at

  • Normally processing fee is higher than PF in case of normal down payment
  • The rate of interest would be higher than the normal rate of Interest
  • Some banks or financial institution are different in their decision that they take lower interest and fees due to keeping the income proof and own house proof of customer to get secured their lending money.
  • The processing fee varies from 2% to 4.5% depending upon the bank
  • The interest rate would be from 9.5% to till 14% ROI on Flat rate of interest

6. ‘NBFC VS BANK’ Which is better for Minimum down-payment for a two-wheeler loan

“NBFC or BANK” both provide the lending facility to the consumer and business. From my personal experience in Finance, I will share how both bank and NBFC are dealing with their two-wheeler customer.

Let’s look at the below point to get in the details


Distinguish point NBFC BANK
Interest Rate Normally interest rate is higher than the bank Here Interest rate is lower than NBFC
Processing fee The processing fee is higher as compared to bank Where processing fee lower than the NBFC
Private sector vs public sector Usually, NBFC are private sector undertaking i- Pvt sector bank’s processing fee is greater than the public sector bank
ii- whereas in the case of public sector bank vice versa

7. Is It good to take a loan on a low down payment?

There may be some questions to make anyone confused about whether to choose Minimum DP or not.

Why should someone choose low down payment? Is it really beneficial for them or are they paying an extra amount to finance company?

Here I want to briefly explain the advantages and disadvantages of buying of minimum down payment

  Advantages Disadvantages
1 The balance loan amount can be invested in another place to gain more profit for a business Extra fees or charges will have to pay in case of Loan
2 Customer doesn’t have to worry about arranging a large sum of amount But In the case of finance delivery could be a delay due to the finance process
3 One individual can improve their credit score There is no question for credit score
4 Credit card and Loan facility can be given No credit card or other loan facility is available

8. Can someone do two-wheeler loan on minimum down payment through Bajaj card?

No, Bajaj card doesn’t provide any two-wheeler loan on their card.

They provide consumer durable loan on their Bajaj card

9. Which finance company or banks are providing vehicle loan

NBFC who provide Two-wheeler

  • Tata capital finance
  • Manappuram finance
  • Hero Fincorp
  • TVS Finance & more

Banks who provide two-wheeler finance

Private sector Bank

  • Icici bank
  • HDFC bank
  • Indusind Bank
  • IDFC Bank

Public Sector

  • Canara Bank
  • United Bank of India
  • UCO Bank
  • Allahabad Bank
  • Bank Of India & other Public sector banks

These Public sectors Bank issue Demand Draft on behalf of the Dealer name to the customer.

Finally, I would like to tell that I have informed all detail facts and information about Minimum down payment for Bike Loan. If this Article is helpful and significant for you Please comment below and queries also ask me

Thank you





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