It is only fair to say that, in India, two-wheelers have cult-like status. Not only are two-wheelers a much practical method of commute most suitable for Indian road conditions but also are more affordable compared to a four-wheeler. Nowadays, with easy and
affordable two-wheeler loans, anyone can purchase their dream bike or scooter.
Today, many renowned financial institutions offer fast and affordable
two-wheeler loans with a flexible repayment schedule to their customers. Making the loan application process easier, they allow you to apply for the loan directly on their website. You can also use an online two-wheeler loan and EMI calculator to plan your budget before going ahead with the loan. It will help to figure out how much you can borrow and how much you will have to pay each month as an EMI.
What is a two-wheeler loan EMI calculator? A loan EMI calculator helps you figure out how much you will have to pay each month and for how long to pay off your loan. You can also use a
bike loan EMI calculator to restructure your EMI by adjusting your loan tenure. This calculator is primarily used to determine your repayment ability. It also assists you in selecting the right term so that you can choose the most appropriate EMI.
Also Read: Top 5 Aspects to Consider before Taking a Two Wheeler loan How does a two-wheeler loan EMI calculator work? You need to provide only three details to calculate bike loan EMI
: - Amount - It is the amount for which you have been approved or are entitled to receive a loan from a financial institution.
- Rate - It is the percentage charged by your financial institution on your principal amount.
. - Loan Tenure - It reflects the time duration within which you have to repay your two-wheeler loan.
A
two-wheeler loan EMI calculator solely works on the above factors. The principal loan amount and interest rate are directly related to your EMI, while the tenure is inversely related. So, if you go for longer loan tenure, your EMI reduces and vice versa. However, EMI increases with an increase in the principal sum and interest rate, and vice-versa.
Factors affecting your two-wheeler loan interest rate Different financial institutions offer two-wheeler loans at different rates due to the fierce competition in the market. Other variables that influence your loan interest include
your credit score, age, income, loan tenure, existing liabilities and so on.
Also Read: A Complete Guide To Choosing The Two-Wheeler Loan Tenure How to calculate two-wheeler loan EMI? To calculate your loan EMI, simply input the loan amount, interest rate and tenure in a credible online
bike loan EMI calculator and wait for the result. You can even tweak the variables to see different options in EMI. For example, if your loan term is 24 months and you want to pay it off in 18 months, just change the tenure from 24 to 18 months on the two-wheeler loan EMI calculator and it will show you the revised EMI.
However, there is a
tip to calculate a two-wheeler loan EMI for a new borrower. Being a new borrower, you may take time to adjust numerous options on a calculator. As such, it will help you to determine the EMI that suits you the best. You may also use a below mentioned mathematical formula to perform this calculation,
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where P denotes the principal, R denotes the interest rate on your loan, and N denotes the loan repayment period.
Also Read: Easy Steps to Calculate EMI for Bike Loan Benefits of using a two-wheeler loan EMI calculator - Reduces Default Risk - The EMI calculator will help you in calculating your EMIs in advance, reducing the likelihood of you defaulting on your loan repayment. It assists you in effectively managing your finances as well as maintaining your credit score.
- Affordability - With the help of the online loan EMI calculator, you get to know about your EMIs even before applying for the loan, helping you assess your financial position better. As such, it will assist you in determining whether or not you are in a position to purchase your preferred two-wheeler.
- Fast and Simple - Unlike any mathematical formula, you can quickly calculate your bike loan EMI by providing the necessary information.
- Reliable - Since there is no manual calculation involved, the output shown on your device is precise and error-free.
- Convenient - You can use a two-wheeler loan EMI calculator on any device. You also do not need any log-in credentials to use free online loan EMI calculators.
With these simple steps, you can calculate your loan EMI with ease and budget your monthly expenses ahead of actually availing of a two-wheeler loan.
