What is Bike Loan EMI Calculator

What is Bike Loan EMI Calculator

Bikes and scooters are the most used modes of transportation in India and for all the right reasons. The never-ending traffic along with uneven roads make it difficult to drive a four wheeler. However, nowadays owning a two wheeler is a symbol of status.

Hence, apart from the regular bike, high-end sports models have taken the Indian market by a storm. Regardless of the bike model you choose, financing it from your pocket is difficult.

Thanks to banks and NBFCs that now provide bike finance to help you get your dream bike. Nevertheless, the first question that pops in your mind when thinking of repaying the loan is the amount of liability related to it.

Applying for a bike loan without understanding the EMIs might damage your financial planning in the long run. This is when a bike loan EMI calculator can be utilized to understand the amount of EMI you are liable to pay.

What is a Bike Loan EMI Calculator

When you purchase a bike on loan, you need to repay the amount in the form of equated monthly installments. This monthly liability on loan depends on three major factors.

These factors determine how much you need to pay as an EMI for a specific bike loan. The bike loan calculator is generally available online with free unlimited access to users,

You, as a borrower, have to enter the needed information in the online tool. After this, the calculator will display your installment amount with other relevant information like the total interest payable.

Therefore with a two wheeler loan calculator, you can get a fair idea about your future EMIs even before applying for a two wheeler loan.

Elements of the Bike Loan Calculator

Before you start using the calculator, you must first understand its various components that will state your liabilities every month. Below are the factors

1. Principal amount: The principal is the total amount of money you are about to borrow from the bank or NBFC. Higher the principal amount, higher will be the EMI and vice versa. Therefore, to keep the EMI amount loan less, you must try and finance the bike amount as much as possible from your pocket.

In a 2 wheeler loan calculator, you need to mention the principal amount in the particular column.

2. Tenure of the loan: Tenure refers to the total time period of your loan. If you choose to repay the loan in a year, the total tenure will be less, but your EMI amount will be high and vice versa. You should always decide the tenure of your motorcycle loan depending on your financial health.

It is always recommended to clear your dues as early as possible if your financial health is good. If this is not the case, extend the tenure for lower EMIs.

3. Interest rates: The interest rate is the percent of interest charged by your bank or NBFC for the bike loan. A higher rate of interest will increase your EMI amount and vice versa. Interest rates are predefined by the lender; hence there is no possibility of alteration.

However, you can compare the interest rates offered by various lenders and select the lowest.

Benefits of Using a Two Wheeler EMI Calculator

1. Hassle-free and quick: Manual calculations can be cumbersome and lengthy. A bike loan EMI calculator can seamlessly give you the results within milliseconds. It can give you the EMI along with the interest that needs to be paid by you.

2. Effortless to use: The interface of EMI calculator is easy to navigate and use. Anyone can use it. The fields are correctly marked; you need to fill the necessary information to get the desired output.

3. Accurate: Sometimes, manual calculations can go wrong. This might disbalance your financial planning. Using an EMI calculator will ensure accurate calculations irrespective of how many times you use the tool.

4. Unlimited usage: You can use the calculator as many times as you want. This is very helpful when you want to try different combinations of the loan tenure. It also helps to check the various bike loan offers by different lenders and select the appropriate one.

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