Bike Loan EMI Calculator

Bike Loan EMI Calculator

Two-wheelers are the go-to vehicle option for India’s middle class, especially first-time buyers. A growing young population and increasing urbanisation of Tier-I and Tier-II cities in India, along with the affordability factor, make two-wheelers the most-sold automobile segment in the country.

This, in turn, creates a huge market for bike loans. Almost all leading lenders in India nowadays offer attractive bike loans with competitive rates and attractive EMI (equated monthly instalments) options. With so many players in the market, two-wheeler buyers struggle in choosing the right loan product that can facilitate their two-wheeler purchase. In such situations, a Bike Loan EMI Calculator comes in handy.

What is a Bike Loan EMI Calculator?

A Bike Loan EMI Calculator is an online tool that can help you calculate the exact EMI you would have to pay every month, depending on factors like your total loan amount, loan tenure and interest rates.

It simplifies the process of loan planning as the monthly EMI indicator largely helps you assess how much loan you can take and for what duration.

How does the Bike Loan EMI Calculator work?

You need to provide three key details to use the Bike Loan EMI Calculator – the loan amount, the tenure and the interest rate.

Loan amount: The loan amount, also known as the loan principal, is the amount that you borrow from the bank and repay along with the interest. This is one of the most important factors in determining your EMI.

Loan tenure: The loan tenure refers to the duration within which the loan amount, and interest, would have to be repaid in the form of EMIs. Longer repayment tenure means lesser monthly EMI, and vice versa.

Interest rates: This is the rate of interest that the bank charges on the principal loan amount. Banks typically offer two types of interest rates on bike loans – fixed and floating. A fixed interest rate remains constant throughout the loan tenure, providing predictability in EMI amount. Whereas a floating rate refers to changing interest rates based on monetary policy decisions during the loan tenure.

Several other factors can also influence bike loan interest rates like the borrower's credit score, income stability, relationship with the lender, loan amount and loan tenure.

Step-by-step guide to use the Bike Loan EMI Calculator

Most Bike Loan EMI Calculators appear in the form of sliders for easy input of information. Here’s how you can use this tool:

Step 1:The first field is usually for the loan principal amount. You can enter the amount you want to borrow.

Step 2:The second slider is the interest rate being offered by the bank. Note that the Bike Loan EMI Calculator can work effectively only for fixed interest rates.

Step 3:The third field is meant for loan tenure. It could range from 6 months to 60 months.

After entering the inputs, the screen will show you the precise EMI value. You can tweak the inputs in order to increase or decrease the EMI amount.

Benefits of Using a Bike Loan EMI Calculator

• Bike Loan EMI Calculator helps borrowers in making an informed decision. The indicative EMIs enable better loan budgeting.
• These calculators serve as an easy first step to kick-start the borrowing process, without the need to reach out to third-party agents.
• The EMI calculator also helps in comparing loans offered by different lenders.
• Using the Bike Loan EMI Calculator also makes it easy to decide on the correct loan tenure as per your repayment plan.
• Bike Loan EMI Calculators make the whole borrowing process easy and transparent.

Common mistakes to avoid while using EMI calculators

• The Bike Loan EMI should not become a financial burden. Plan your budget in advance to avoid missing the loan repayment schedule.
• Don’t ignore the interest rates. Look for the maximum interest you can afford.
• The loan tenure will decide your EMI amount. Longer tenure may reduce the EMI but total interest outgo will increase. Choose what suits best.
• Don’t miss comparing different bike loan offers. This can help you to choose the most affordable loan.

Conclusion

Bike Loan EMI Calculator is an easy-to-use and free tool that helps you decide what your bike loan should look like depending on your repayment capabilities. It will not just help you in planning your finances, but will also help you locate the best bike loan product for your purchase.