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Two Wheeler Loan EMI Calculator
India is the only country which has the maximum number of two-wheelers in the world. Seeing both the logistical and economical situations, people in India prefer driving bikes. In the last couple of years, biking has really caught up in India and the nation has also witnessed global brands launching their products. Now, with the global brands coming to the country, people have more choices when it comes to owning a bike. But, on the flipside, owning a bike has become quite expensive and taking a loan is the only resort how you can fulfill your dream of owning a bike. Nearly, every bank across the nation offers bike loan and you can also make the most of it.
Before you go ahead and make a choice for a lender or a bank, there are certain things related to the product and its financials you need to know in ensuring you make the right choice for apt terms. With the online banking fast catching up, it has become easier to make important financial decisions and simultaneously banking process has also become transparent and convenient. Taking this convenience to another level, most of the banks, financial entities, and insurance providers have launched a helpful tool – EMI Calculator – that assists you in your monetary aspects that involve buying a bike as well.
What is an EMI Calculator?
An EMI Calculator is a unique tool that helps you calculate the amount of EMI payable for clearing the loan. All you need to fill the financial details in order to have the needed information. Once you have entered the required information, you will have the auto-computed EMI amount. Besides getting the EMI amount, you also have the advantage of having additional information that helps you to make a choice for terms that suits you. When you know your EMI amount you need to pay each month, it becomes easier for you to plan your budget accordingly.
How to use a Bike EMI Calculator?
One of the best things about this calculator is that it is capable of generating instant results. Before you actually use a bike loan EMI Calculator, it is imperative you have gathered all the important information such as loan term, interest rate, processing fee, loan amount, etc. Once you have all these, follow the below-discussed steps –
- You need to use scale one titled ‘Loan Amount’ in order to seal the loan amount. In order to make a right selection for the amount, take your time and move the scale slowly. You will have the result at the end of the scale.
- Following the same procedure, now use the scale two to lock the ‘loan term’.
- In the next tabs, you need to enter the interest rate and the processing fee with the help of the numeric keypad. In the end, all you need to click calculate.
You can also use the EMI Calculator tool again if you want to compare the bike loan offers from different banks or financial entities. There is no doubt that having a bike is an exciting experience. When you have the right knowledge of the product and the monetary components, it really comes handy in signing up for the right bike loan.
What are the advantages of using Bike Loan EMI Calculator?
There are so many benefits of using an EMI Calculator for Bike Loan. Let us discuss them –
Getting familiar with EMI value –
The main reason for using an EMI calculator is to get familiar with the amount you need to pay each month. It becomes easier to manage your funds when you have the information about the amount beforehand. The best part is that it saves your efforts in doing manual calculation and moreover it also reduces the chances of errors.
Helps in selecting a tenure –
When you have a definite EMI amount, you will face no problem in selecting the loan tenure. If you have the feeling that it will burn a hole in your pocket, you can choose a longer term to proportionately bring down the value.
Makes comparison easier –
The best way to make a smart choice for your dream bike is to compare the loan offered by multiple banks and this is where online bike loan EMI calculator will help you to choose a loan offer that suits you best. All you need is to have the quote, calculate using the EMI calculator, and note down the result in order to compare on the particular parameters.
Helps you negotiate better –
Once you are familiar with the ins and outs of all the financials involved, it will prove helpful you to negotiate the important terms of the bike loan with the financial entity. When you have ascertained the ground, you won’t find any issue negotiating for the key components such as processing fee, interest rate, and others.
Provides a break-up of costs –
In addition to offering you EMI value, you also get to gain key information like the breakup of the loan charges such as processing fee and interest rate.
Bike Loan EMI Amortization Table –
One of the best benefits of this tool is the amortization table. As per this table, you have month wise breakup of the principal and interest charges that involves in the calculation of the EMI amount.
What should you know about bike loan interest rates?
In India, the bike loan interest rates vary between 13% to 27% and it will entirely depend on the bank, the type of the bike, your employment nature, and your income source. Interest rates usually are floating and they are associated with the base rates. Since a bike is considered as a depreciating asset, you will have high-interest rates than other loan products. The rate of interest for the bike loan also gets influenced by various other elements such as the type of the bike, the term, and the margin, etc.
What are the features of bike loan?
- If you want to purchase your dream bike, spending all your savings on it is not considered as a smart decision. Instead, you should opt for a bike loan; it will surely offer you some relief from your financial burden. As an added advantage, you can budget effectively and with EMIs you get to pay back the loan easily.
- A bike loan generally covers the cost of registration, accessories, and insurance.
- When you are considering a bike loan, you can inquire about the loan partnership options with your dealer.
- The best thing about a bike loan is that you don’t need to get into much documentation.
- When it comes to income criteria, the banks are ready to offer a bike loan even if your annual income is Rs. 50,000.
- Most of the banks even have flexible repayment options. This will help you make a choice for a comfortable term.
What is the eligibility and documentation criterion for the bike loan?
In India, people belonging to the age group of 18 to 65 are the ones who take more bike loans. These customers are usually a student, self-employed, or a professional. When it comes to the criteria related to the bike loan, the type of the loan really matters and the final decision will be taken solely by the bank. An address proof and an ID proof are the two important documents you need to submit.
How to Compare Two Wheeler Interest Rates?
- Before you give thumbs up to any bike loan, make sure you went through the features of the loan.
- It is important you have checked the interest rates for the bike loan whether it is fixed or floating. You can also use a bike loan calculator to decide where you can easily afford the loan or not.
- If you are using a bike loan EMI calculator, you need to enter the interest rates, loan amount, and term. The calculator will notify you about your monthly EMI and you will also get familiar with the repayment schedule. This will really prove beneficial in making a decision whether the loan on that interest is affordable or not.
- Comparing different bike loan products is necessary. In addition, you should also cross-check for the features such as the offering of high quantum, nil-foreclosure charges, and insurance, etc. Comparing the interest rates of the bike loan with the help of a third-party comparison website will also come handy.