Introduction
Recently, two-wheelers and bikes have emerged as the best vehicles to travel on Indian roads. While getting a two-wheeler might seem expensive to some, it is best to buy it using a bike loan that lets you repay in EMIs over a flexible repayment tenure. If you are unsure about the feasibility of availing a loan and repaying it through EMIs, it is best to use a bike loan EMI calculator. This way, you can accurately assess the EMI you would have to pay over a fixed period.
Loan EMI Calculator
As the popularity of bikes increases, payment methods are also on the rise. Bike loans have become the best way to own a vehicle as they make the purchase more affordable. With a bike loan, you can purchase the vehicle of your choice without disrupting your savings.
A bike loan EMI calculator is the ideal tool for calculating the amount you will be required to pay as EMI once you have availed of the loan. By using a bike loan EMI calculator, you can input different figures until you arrive at an EMI amount that works best for you. For instance, if you have already decided the EMI amount that is most suitable for you, you can try entering different years in the calculator until you arrive at the most suitable repayment tenure.
Variables Required to Calculate Bike Loan EMI
To use a bike loan EMI calculator, you must enter the figures for three variables that determine the EMI you will be required to pay. We expound on these details below.
Principal Amount of Loan
The principal amount is the total amount you have received as a loan to facilitate your bike purchase. The principal amount is a huge determinant of the amount you are required to pay as EMI.
Interest Rate
The interest rate at which you avail of the bike loan is also a significant determinant of the EMI you will have to pay. While some lenders will offer a fixed interest rate for your loan, others might offer a floating interest rate. Regardless of the kind of interest rate you are offered, you can use the EMI calculator to determine the EMI you will be required to pay.
Loan Tenure
The loan repayment tenure plays a vital role in determining your EMI amount. Your EMI amount will increase if you want to opt for a shorter repayment tenure and it will be lesser as your tenure increases.
These three variables, when calculated using a loan EMI calculator, help determine the amount you will be required to repay as EMI on your bike loan.
How Does the Bike EMI Calculator Work
To use a bike EMI calculator, you can head to your preferred lender's website and utilise the online calculator. The online EMI calculator will have sliders for you to choose your ideal principal amount, interest rate and repayment tenure. Using the sliders, you can calculate the ideal EMI amount for your bike loan.
However, you need to know its formula to understand how a bike EMI calculator works.
The formula used by the calculator is
[P x R x (1+R)^N]/[(1+R)^N-1]
Here, the principal amount is denoted by P, whereas R is the interest rate and N is the repayment tenure.
Advantages of Using the Bike Loan EMI Calculator
While the benefits of a bike loan are numerous, there are several advantages of calculating the bike loan EMI using an online EMI calculator.
1. Assessing Affordability
If you have been planning to buy a bike for a while, you will know that the best bikes are sometimes out of your reach, owing to their price tags. By using an online EMI calculator, you can assess which bikes are viable for you.
2. Helps in Planning
The ease of maintenance and whether you wish to ride it on city roads or while traveling on the highways are also factors that determine the bike you want to buy. By using an online EMI calculator, you can speed up your decision-making process, as it will help you determine the EMI you would be required to pay in line with a changing principal amount.
3. Privacy
One way of assessing your EMI would be to head to the nearest office of your preferred lender and ask them about it. However, an online EMI calculator allows you to assess your options while maintaining your privacy.
Conclusion
While buying a bike may seem difficult at first, applying for a two-wheeler loan on Bajaj Markets will simplify the process. This two-wheeler loan is available at an interest rate starting from 8.75% per annum and offers you the ease of repaying it over a flexible tenure of three years.
