Here’s how an online two-wheeler loan calculator could be your best companion when buying a bike!

While buying a high-end moped or cruiser might have been on your wish list for a long time, budget constraints may have kept you from buying your dream bike. However, with easy access to two-wheeler financing, you don’t have to narrow your choices due to a lack of funds or dip into your savings to buy a new bike.

It’s important to remember that when you buy a new bike or scooter with a two-wheeler loan, the full cost of the vehicle is converted into EMI. The EMI value payable depends on factors such as the principal sum, the interest rate applicable to the two-wheeler loan and the term of the loan. It is essential to budget for these EMI payments and to borrow only within the limits of financial capacity. The easiest way to do this is to use a bike loan EMI calculator.

What is a Bike Loan EMI Calculator?

A bike loan EMI calculator is a digital tool that calculates your EMI liabilities for a two-wheeler loan. This tool takes into account crucial information such as the principal sum borrowed, the interest rate of the two-wheeler loan and the term of the loan to calculate your EMI payments. Knowing your EMI liabilities helps you better plan your monthly expenses.

Why should I use an online bike loan EMI calculator?

Check feasibility

When buying a bike on EMI, the cost of the model is divided into monthly installments. However, you must ensure that these NDEs remain manageable. Borrowing a substantial sum to finance the two-wheeler of your dreams can be detrimental to your finances. A bike loan EMI calculator helps ensure that your two-wheeler loan stays within your tax feasibility limits. In other words, it saves you from overburdening your finances. If the EMI payment displayed by the Bike Loan EMI Calculator is too high, you can easily modify the loan term until you find the desired EMI value.

Tax planning assistance

Most borrowers will have existing financial commitments and monthly payment obligations that must be honored. Adding another expense to already existing home loan EMIs, credit card bills, utility expenses, and general monthly fees is a significant burden. Thus, planning and budgeting are crucial when applying for a new two-wheeler loan. With a bike loan EMI calculator, you can estimate your monthly EMI liability before you even apply for the loan. Knowing your EMI payments in advance will allow you to allocate funds in your budget accordingly, thus avoiding a situation where you do not have sufficient funds for other expenses.

Default Secondary Issues

With diligent tax planning in place, you’ll be more likely to pay your EMIs on time. This will help reduce your risk of defaulting on the loan. Plus, paying off your EMIs on time will also help boost your credit score and improve your chances of getting loans at lower rates in the future.

Accurate results

Although you can fall back on manual EMI calculations, these calculations have a larger margin of error. As even a small mistake can cost you dearly, it is better to avoid such risks and use a digital tool to support such calculations. A Bike Loan EMI Calculator helps circumvent these errors by displaying accurate and precise results every time.

Help in choosing an appropriate loan term

Besides the interest rate of your two-wheeler loan, the term of your loan also plays a crucial role in determining your EMI payments. While choosing a short repayment term can increase EMIs and strain your finances, a long term can increase interest payments. A bike loan EMI calculator can be used to find the perfect balance between manageable EMI payments and well-budgeted interest payments. This tool can run different repayment terms to see how your EMI and interest payable changes. This will help you choose a tenure that doesn’t come with exorbitant EMIs or large long-term interest payments.

Convenient to use

A bike loan EMI calculator ensures that you don’t have to spend hours solving complicated equations to figure out your loan’s EMI. This tool provides accurate information based on just a few key parameters, saving you time-consuming manual calculations. Moreover, this estimation process becomes easier because you can access this tool online, completely free of charge and run several simulations until you find a desirable EMI option.

Handy for loan comparisons

The interest rate on your two-wheeler loan plays an important role in determining your total EMI expenses. Since different lenders offer different interest rates for two-wheeler loans, comparing these rates beforehand can be a prudent choice. A bike loan EMI calculator can help you do that, that too, in seconds. You can inquire about the different interest rates of two-wheeler loans offered by different banks and NBFC to see which loan offer is offered with the most affordable EMIs. You can also change the terms and principal amounts to find the best loan deal that meets your budget needs.

Steps to Use a Bike Loan EMI Calculator

Using a bike loan EMI calculator is quite simple. Here is a step-by-step guide to help you through this process.

Step 1: Visit any lender’s website to access their Bike Loan EMI Calculator

2nd step: Enter the amount of your loan in the field marked ‘Amount’

Step 3: Fill in the interest rate of the applicable two-wheeler loan

Step 4: Enter the duration of your preferred loan

Step 5: Press the ‘Calculate’ button

To conclude

Given the myriad of benefits that EMI bike loan calculators offer, using this tool before applying for a two-wheeler loan can make your life easier. From budgeting your expenses to selecting a favorable tenure, EMI Bike Loan Calculators help streamline the entire borrowing process. Additionally, some of these EMI calculators also display the loan amortization schedule. In other words, they help you understand the principal to interest ratio in your EMI payments as the term of the loan progresses. For example, you can use Bajaj Markets’ Bike Loan EMI Calculator to review this information, especially if you want to prepay the loan before the end of the term. You can also opt for a bicycle loan and benefit from attractive interest rates for the two-wheeler loan from just 9.25%.

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