A bike loan EMI calculator is a simple online calculator that can be used by everybody, even if you do not have any prior knowledge about finance. It is quite useful as it allows you to plan out the loan expenses in detail.
Bike Loan EMI Calculator
A bike loan EMI calculator is an online tool that helps you calculate the amount you have to pay every month. All you need to do is input the loan amount, rate of interest and tenure to calculate the EMI amount. You can use this free online calculator to judge your repayment capability.
How Does It Work?
You can calculate the EMI of a bike loan manually using the formula given below:
EMI = [P*R*(1+R)^N]/[(1+R)^N-1]
Where,
P = Initial loan amount
R = interest rate
N = number of EMIs
However, calculating the EMI using an online calculator is simpler and hassle-free. In order to calculate the bike EMI online, you only need the following information:
- Amount
- Rate of interest
- Tenure for repayment
Benefits of a Bike Loan EMI Calculator
There are plenty of benefits of using an EMI calculator. Some of them are:
- Helps with choosing the right tenure: Once you know the EMI amount for different tenures, it becomes easier to choose the right tenure that suits your needs. In case you feel that the EMI is high, you can increase the tenure.
- Makes planning and comparison easier: Using the online calculator helps you compare the interest rates and its corresponding EMIs of different lenders. The calculator also helps you by letting you know the EMI beforehand so that you can know if the EMI is within your repayment capacity. The results are accurate and you can rely on the information confidently.
- Easy to use: Online calculators are simple to use as all you need to do is enter the loan amount, interest rate and tenure and your EMI will be calculated in seconds. You do not have to spend a lot of time on manual calculations. It also reduces the risk of error.
- Use it anytime from anywhere: Since a bike loan EMI calculator is accessible from all devices, you can use it anytime from any place across the globe. Login is not required to use the calculator.
- Helps in negotiating: Once you are aware of the EMI that you will be required to pay, you can negotiate with the lender for better interest rates, processing fee, etc.
- Provides details about additional charges: The online calculator not only shows the EMI details but also provides you with additional information such as processing fees.
Why Should You Use a Two-Wheeler Loan EMI Calculator?
Let us now take a look at some reasons why you should use a bike loan EMI calculator:
- You can decide the tenure and loan amount after you know the exact EMI amount with the help of the online bike loan EMI calculator.
- You can also find out amortisation details using the calculator. You can find out how much you will spend on your principal amount and how much interest you will have to pay. You can find out the distribution of your loan payment.
- It will help you learn the fundamental elements of your loan. You will have an idea about the amount you are spending on your dream bike.
- You can enter rates of interest charged by different lenders and find out which is the best loan option for you. You can compare EMIs of different loan amounts, tenure and rates of interest.
How to Use The Two-wheeler Loan EMI Calculator?
Many lenders who offer two-wheeler loans have an online EMI calculator on their website. Follow the steps mentioned below to calculate the EMI for your bike loan:
- Visit the official website of the bank or financial institution of your choice from whom you want to get a bike loan.
- Enter the tenure of loan amount and rate of interest.
- Click on ‘Submit’ or ‘Check Now’. The EMI calculator will generate your monthly EMI amount within seconds.
It is recommended to use the online bike EMI loan calculator in case you want to purchase a bike with a two-wheeler loan. Knowing the EMI beforehand allows you to borrow an amount that is within your repayment capacity. This will help you reduce the chances of defaulting in the future. In case you feel like the EMI is on the higher side, you can opt for a longer tenure that will bring your monthly instalment amount. Kindly note that even the slightest increase of 0.30% in the interest rate can have a substantial effect on the EMI.
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