Monthly EMI: Rs. 1,000,00
A bike EMI calculator helps you form an estimate of the EMI you will have to incur when you buy a bike loan.
Thinking of buying a new bike but falling short on funds? A bike loan can help you in that regard. Before you buy a bike loan though, you may want to know which bike loan would be the most suitable for you. Knowing what you are signing up for and being an informed borrower is always a wise choice. A two wheeler loan EMI calculator is one of the best tools out there that can assist you in the process.
A bike EMI calculator gives you an estimated EMI amount based on the three variables you provide: the loan amount, the rate of interest, and the loan tenure. With the help of these variables, the calculator forms an approximate amount that you will have to pay every month during your loan tenure as repayment. The two wheeler loan EMI calculator is provided by almost every financial institution as a tool for their potential customers to use and select the best bike loans.
Using a two wheeler loan EMI calculator is quite easy! A two wheeler loan calculator is designed to be user-friendly. There is no need to know any formulas or be a tech whiz to understand the process of using a two wheeler loan calculator. Here is the procedure, described in 3 easy steps.
Many financial institutions’ websites have the two wheeler loan calculator tool. You can select and visit any, and you will find the calculator under their ‘two wheeler loan’ tab. Or, you can simply run a search for ‘bike EMI calculator’ and you will get a reliable list of results as well.
Now, you have to enter the three variables: the loan amount, the rate of interest of the lender, and the loan tenure. After entering these, you will get the EMI amount immediately.
If you feel that the amount estimated by the two wheeler loan calculator is too high or too low than you had intended, you can freely adjust the variables. You can keep adjusting until you have arrived at a satisfactory EMI amount.
Along with the two wheeler loan calculator, you must have also come across the term bike insurance plan premium calculator. These are two different tools serving unique purposes. However, both aim to empower the customer with the right information.
Premium calculators are intended to give you an estimate for the premium you will incur for a bike insurance plan. The variables for a two wheeler insurance plan needed here are the coverage, fuel type of the bike, the make and model, the variant, year of purchase, location, and so on. A two wheeler loan EMI calculator, on the other hand, aims to provide you with an estimated EMI for your intended bike loan from a lender.
Having a two wheeler insurance plan that covers third party liabilities is mandatory in India as per the Motor Vehicles Act of 1988. If you are looking for coverage beyond third party liabilities, then you may want to consider buying comprehensive two wheeler insurance plans
A bike EMI calculator helps you structure your loan repayment plan in a better way. It helps you decide on the loan amount, the interest rate, and the tenure as per your EMI affordability.
By giving you an idea of the EMI you will be paying, the two wheeler loan calculator decreases the risk of defaulting on the loan. Since you know the approximate amount that you will have to pay, you can structure your loan amount and monthly budget accordingly.
A two wheeler loan EMI calculator eliminates the need to manually calculate the EMI with each adjustment of the various variables. A bike EMI calculator introduces convenience to the process by allowing you to adjust the variables as much as you want and giving immediate results.
With the help of a two wheeler loan calculator, you can compare the various lenders on the basis of the rate of interest. You can go ahead with the lender that offers the interest rate most suitable to you, in alignment with the other two variables.
With the help of a two wheeler loan calculator, you can understand the break-up of your loan repayment. It helps you understand the total amount paid as the principal and the amount paid as interest over the course of the repayment tenure.
Depending on the website you are using for the calculator, you will be able to lower the interest rate only up to a certain number. After that, you will only be able to adjust the tenure and the loan amount.
Some sites that have the two wheeler loan EMI calculator often ask for other details besides the three variables such as the processing fee. However, in most cases, it is optional and may not make much difference in the overall result.
The EMI amount predicted by the bike EMI calculator is simply an estimate. The actual EMI is dependent on several factors and may differ from the estimated amount. That being said, However, the difference would not be considerably large.
The two wheeler loan EMI calculator requires three basic details to compute your EMI estimate.
The principal loan amount would be around 80-90% of the total cost of your bike. Your EMIs will increase proportionally as the principal amount increases.
The second vital detail required to use the bike loan EMI calculator is the rate of interest. You will be able to decrease the interest rate on the calculator only till the lowest rate offered by the lender. The higher rate you choose, the more will be the EMI.
You may want to repay the bike loan as soon as possible. Do note that a shorter duration would mean a higher EMI but a lower overall amount paid. That is why, you may notice that as you increase the tenure on the two wheeler loan calculator, the EMI decreases but the overall amount increases as the repayment is being stretched for a longer period of time.
You need to pay a certain amount to the insurer to enjoy the coverage of a general insurance policy. This amount that you pay is known as a premium. It can be paid monthly, quarterly, yearly, etc. depending on the type of plan you have.
The premium of your general insurance policy depends on numerous factors. Keeping this in mind, most general insurance companies in India have premium calculators on their websites. General insurance calculators are simple online tools that compute the premium of your insurance plan based on your personal details & your coverage needs.
No. While the credit score is an important determinant in processing your bike loan application, it does not have any credibility in the two wheeler loan EMI calculator. Do note that your credit score will have a considerable impact on the final rate of interest offered to you by the bank.
Yes, you can use the bike EMI calculator even if you do not know the processing fee of any lenders. In the pPortals that do ask for the processing fee, you can simply add ‘0’.
The calculator uses the following formula to calculate the EMI: [P x R x (1+R)^N]/[(1+R)^N-1]. Here, ‘P’ denotes the principal, ‘R’ denotes the interest rate, and ‘N’ denotes the loan repayment tenure.
For instance, let's assume that you want to apply for a loan of Rs 70,000. The rate of interest offered by the lender is 10%. And you choose the loan repayment tenure as 36 months.
Now, the bike EMI calculator will use this formula to calculate your potential EMI, which will be Rs 2,528. You will also come to know the total amount you will incur, which, in this instance, would be Rs 91,000. As you can see, you also become aware of the overall interest amount, which is around Rs 21,000 in this scenario.
While a bike loan EMI calculator helps you get an estimate of the EMI, the final EMI offered by the bank or the lender may differ based on several criteria. Let’s take a look at what the criteria includes:
The down payment made: As you may know, the lender only pays for a certain amount of the total cost of the bike. The rest would have to be paid by you in the form of down payment. If you choose to pay a higher down payment, the EMI you incur would be considerably lesser.
Your credit worthiness: If you have a good, stable credit history, your credit worthiness increases and the lenders areis more willing to trust you with the repayment of the bike loan. This leads to a lower interest rate and thus, a lower EMI.
Job stability: Lenders are more trustful of salaried employees whose income is regular and stable.