How does the two wheeler loan EMI calculator work?
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.
- What is a premium?
- Does one have to upload any documents to use the two wheeler loan calculator?
- Can one use the bike EMI calculator if they do not know the processing fee of that lender?
- How does the two wheeler loan EMI calculator work?
- What are some of the factors that determine the overall EMI of the bike loan?