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An EV scooter is quite necessary, owing to its convenience. Whether it’s going to the office or the market, you can use this two-wheeler for your daily commute. Besides, you won’t have to worry about the fuel price since it runs on an electric battery. So, this two-wheeler comes with numerous benefits. However, purchasing a new electric scooter requires a huge upfront investment. From the market price to taxation fees, there will be innumerable overheads.
This is where most people back out from their decision. Paying such a lumpsum amount from your own pocket can be troublesome. So, the best option you have is to take a loan. Since most financial organizations offer low two wheeler loan interest rates with no additional upfront cost, you won’t have to worry about the repayment. But that’s not all! Purchasing an EV scooter on a zero down payment loan has more benefits, which we will explore below.
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Why get an EV with a zero downpayment loan?
Zero upfront costs
A two-wheeler loan with no downpayment means no upfront cost. Whatever the price of the EV bike will be, it can be paid through the EMIs only. You don’t have to make a percent deposition of the total amount as the downpayment. Instead, you can use the fund for something more important.
Immediate vehicle ownership
Most people worry that they cannot immediately own an electric scooter with a zero down payment bike loan. However, that’s not the case. Most financial organizations offering two-wheeler loans do not have any restrictions on ownership. Once the purchase is done, you will obtain all the necessary rights over the vehicle.
Pocket-friendly EMI solutions
Thanks to the low two wheeler loan interest rates, EMIs will be considerably low. You won’t have to bear excessive financial burden for repaying the loan. Also, you will have the option of choosing different repayment terms. A longer-term means lesser EMI and vice versa for the same interest rate.
Lower maintenance costs
Maintaining a two-wheeler can involve too much financial overhead. However, with an EV scooter, avoiding these worries will become easy. They do not usually require extensive maintenance routines. Also, the ongoing maintenance and servicing costs are significantly lower than those for regular scooters.
Attractive interest rates and offers
Most lenders offer attractive two wheeler loan interest rates to their customers. Availing these options will help you get your own commute vehicle without creating a dent in your pocket. Also, you may get special offers on the loan, like repayment flexibility.
How the EMI is calculated for a zero-downpayment two-wheeler loan?
Since you will get the zero down payment electric scooter, the entire loan amount will be paid via EMIs. Knowing the calculation can help you make well-informed financial decisions. Below we have explained how EMIs are usually calculated for a zero downpayment loan.
Let’s assume you have taken a loan of INR 70,000 for the EV scooter (P or Principal). The lender is offering an interest rate of 10% (R or Rate). You have chosen a repayment term of 12 months (N or Number of instalments). So, your monthly EMI will be approximately:
Monthly EMIL: [P x R x (1+R)^N] / [(1+R)^N-1]: [70,000 x 0.00833 x (1+0.00833)^12] / [(1+0.00833)^12-1]
This amounts to an approximate EMI amount of INR 6195 per month.
What are the eligibility criteria for a zero downpayment two-wheeler loan?
Not everyone can be eligible for a zero down payment electric scooter loan. Your lender will evaluate a few conditions to check if you can repay the loan on time or not. Below are the major factors that will determine your eligibility for the loan.
1. Your current age: Loans cannot be given to any person below 18 years of age. So, you need to be at least 18 or more for applying for the two-wheeler loan.
2. Residential stability: Your lender will ask you to submit an ID for address proof. This is to check if you have a stable residence or not. It may be a temporary residence but at least the address should be valid.
3. Profession: Salaried employees, businesspeople, and other such professionals can easily apply for a two-wheeler loan. However, your loan application may get rejected if you fail to show any stable income source.
4. Credit score: One of the most important factors affecting the two wheeler loan interest rates is the credit score. If your credit score is less than 700, the lender may charge more interest rate. Any number lower than 400 can cause the loan application to get rejected.
Conclusion
Applying for a zero down payment electric scooter loan can prove to be beneficial in the long run. You don’t have to bear any upfront costs or pay high interest rates. However, you do need to ensure that you meet the eligibility criteria. stable profession, address proof, and high credit score are the three most important determinants for your loan eligibility.
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