Bike loan calculator: How it works and what are the benefits?
Two-wheelers, such as scooters and motorcycles, play an important role in our daily lives, allowing us to keep up with this fast-paced world. A bike loan might help you get your ideal bike or scooter without adding much to your monthly budget. You can acquire up to 100% of the amount funded with a two wheeler loan. It allows you to acquire your preferred bike without having to worry about a large down payment.
Many banks and commercial institutions provide two-wheeler loans. Nonetheless, finding an appropriate bike loan can be difficult. This is where the bike loan calculator comes in. It can help you plan ahead of time for your monthly instalments, calculate your bike loan eligibility, and loan tenure based on your needs.
What exactly is a bike/two-wheeler loan?
A bike loan or a two-wheeler loan gives you money to cover the complete on-road cost of the bike. That is the cost of transporting the bike from the dealership where it was purchased to the road. Registration, road tax, insurance, dealership price, and other optional charges are all included.
Most banks also provide the option of obtaining a bike loan. They also offer pre-approved bike loans to existing customers depending on their banking relationship. When you get a motorcycle loan, you must pay the lender equated monthly instalments (EMIs) on the amount borrowed. To calculate the monthly instalments you can use a bike loan calculator available online.
Eligibility criteria for a bike loan
Below mentioned are some common bike loan eligibility criteria:
- 21 to 58 years of age, or retirement age
- For salaried individuals, the minimum annual income should be Rs. 1.44 lakhs, and for self-employed individuals, the minimum annual income should be Rs. 2.5 lakhs.
- A minimum of one year of experience is required.
- They must furnish three months of bank statements.
EMI Calculator for Bike Loans
A bike loan calculator is a web-based application that estimates the EMI number for the two-wheeler loan you want to take out. This tool is available on the websites of the majority of banks and lenders. It assists in calculating the amount owed to repay the debt that you borrowed.
Enter the essential information, such as the loan amount (the amount borrowed from the lender), the interest rate charged by the lender, and the loan tenure. That is the number of years you have borrowed the loan for. When you enter all of the information, the calculator will immediately display the results. Thus, a two-wheeler loan EMI calculator calculates the EMI and informs you of the amount you must pay as equal monthly instalments and the total amount of interest payable.
How to calculate bike loan EMI?
A two-wheeler loan EMI calculation requires the following three variables:
This is the amount borrowed and must be repaid over time, plus any relevant interest.
Rate of Interest
The interest rate charged on the principal loan amount.
It refers to the period of time during which the loan amount plus interest must be paid back in equal monthly instalments (EMIs).
Here is a step-by-step tutorial on how to use the Bike Loan EMI Calculator.
- Launch the calculator application.
- Enter the loan amount manually into the box.
- Then, in the box, put the interest rate.
- Finally, input the loan term (number of years).
- Press the calculate button; the result will be displayed in a few seconds.
You can enter other sums to get the answer for other EMIs that you must pay. This will help you decide what portion of the loan you want, what interest rate you are ready to pay, and how long you may accept the loan.
The Advantages of a Two-Wheeler EMI Calculator
There are numerous benefits to using a two-wheeler loan EMI calculator, which include:
Checking for bike loan eligibility: Use the calculator to determine whether the bike EMI is within your financial means. If not, you can change the loan tenure value to obtain a suitable EMI.
Planning: The calculator helps you plan your monthly spending by informing you of your EMI amount ahead of time. It ensures that you do not fall behind on your bike loan EMI payments and that you have the finances to meet your other monthly financial responsibilities.
Free of error calculation: Manual computations require time and are occasionally prone to inaccuracy. Meanwhile, a bike loan EMI calculator will always supply correct figures, and it will do it promptly.
Simple to use: A two-wheeler loan EMI calculator is straightforward to use, requiring only three basic inputs: the principal amount, the interest rate, and the loan term.
The online bike loan calculator saves you the time and effort of manually calculating the EMI number. It also allows you to know the exact amount so that you can budget your monthly expenses. You can also use this tool to adjust your loan amount, interest rate, and loan period. The longer the loan term, the lower the EMIs. Aside from saving time and providing precise results, it also assists you in being fully prepared to control your expenses so that you are in an ideal financial position to repay your loan at the end of the loan tenure.