Zero percent interest loan providers for Bikes

There are a multitude of finance companies that offer interest free loans for purchasing motor vehicles.
But, let me make it clear to you that you should avoid taking loan from such firms. The NBFCs which claim to offer those kind of loans are actually not providing it for free. You actually end up paying more than what actually costs you. There are charges like processing fees and other hidden charges involved.

Reserve Bank of India has banned all such schemes. Banks have stopped offering those types of loans to consumers. However, some lesser known NBFCs continue to offer such loans.

Having said that, you can opt for finance from some genuine finance companies like

1. Magna Finance

2. Reliance Consumer Finance

3. Mahindra Finance

4. Tata Capital

5. Royal Sundaram Finance

6. Bajaj Finserv

The list is not exhaustive one. Also the rate of interests will depend on the individual cases. I would advice you to opt for any one of them and have a direct discussion so that you can negotiate on the finance amount and the interest rates.

Zero percent loans are offered by the finance and the credit card companies to acquire EMI paying customers. These loan schemes do not follow the RBI guidelines, hence most of the genuine finance schemes are transparent about their 0% interest structure to comply with RBI guidelines.

Here are some of the companies that offer 0% interest EMI scheme. Do note that you need to read documentation in order to understand how the scheme works.

1. Bajaj Allianz.
2. Fullerton
3. IndiaBulls
4. HDFC Finance
5. Royal Sundaram Finance

Apart from these financial institutions, you may find that credit card companies in alliance with the known banks run 0% interest EMI schemes. So you'd need to check out such offers at showroom where you're purchasing the bike or car.

Is it worth to buy from 0 percent interest loan or they still charge interest as hidden? :

Not at all worth buying from such schemes. The reason being you end up paying more money than the actual cost of the product. Take example where your bike's price is 1 Lakh and after applying for 0% interest loan, you'd be paying EMI to payback the cost. The processing fee and the EMI prices calculation will increase the cost of acquisition. So the price of the bike will be 1,20,000 Rs or more. This way you paid more money to purchase the bike. Your only trade here is to buy more time to pay off this loan and also you end up paying more.