When you opt for a bike loan, you have to meet certain repayment liabilities. In other words, you will have to pay the borrowed sum back in equated monthly instalments or EMIs during a predetermined repayment tenure. Understanding your EMI burden before applying for a loan will help you plan better. It will also ensure that you don’t overstep your affordability threshold by borrowing a sum that’s too high or by opting for a tenure that’s too short. While using a bike EMI calculator is the simplest way to ascertain your monthly liabilities, there are a few other things you should keep in mind when calculating your EMIs.

Components that Determine your Bike Loan EMIs

Your bike loan’s EMI will depend on three crucial components. It is important to understand these components thoroughly before proceeding to calculate your loan EMIs.

Principal Amount: In simple words, your principal loan amount corresponds to the money you have borrowed from the bank or NBFC. If you use a bike loan to finance 90%-100% of your purchase as opposed to 60%-70%, you will have to pay higher EMIs to repay the loan.

Interest Rate: Your lender will also charge interest on this principal sum borrowed. Thus, your EMIs will comprise both the principal amount and the interest charged on the base amount. Since interest rates vary from lender to lender, you should compare rates and opt for the lowest two wheeler loan interest rate to keep your EMIs low.

Tenure: You need to repay the loan within a specific time window or tenure. Your EMIs will be higher if you opt for a shorter tenure, while they will be lower if your repayment tenure is longer.  

Using an Online Bike EMI Calculator

While you can use these variables to calculate bike loan EMIs manually, doing so can be a complicated and time-consuming process. Instead, you can use a bike EMI calculator. Accessible with just a few clicks, a bike EMI calculator is a free online tool that determines your monthly EMI liabilities (approximately) based on relevant information like your principal amount, interest rate, and repayment tenure.

Benefits of Using an Online EMI Calculator

Simple and Fast - A bike EMI calculator uses simple information like details about your principal amount, interest rate, and repayment tenure to calculate EMI liabilities. Pen-to-paper calculations can take a while and require utmost concentration to prevent errors. However, with the help of a digital EMI calculator, you can review EMI results in just a few seconds.

Error-Free Calculations - To err is human; in other words, manual calculations are not always fool-proof. Even a slight error in your EMI calculations can result in faulty results. Working much like regular calculators, online bike EMI calculators eliminate such risks by producing accurate results no matter how many times you use them.

Free of Cost - The best part about EMI calculators is that they are free! You can use these digital tools as many times as you want without worrying about charges or fees.

Easy Loan Comparisons - Since different lenders offer different interest rates, comparing bike loan offers can be a hassle. Bike EMI calculators can help solve this dilemma. You can use an online EMI calculator to compare the cost of different loans by factoring in varying principal amounts and repayment tenures. This will help you pick a loan with the most optimised EMIs.

Picking the Right Repayment Tenure - EMI calculators help you plan ahead. You can use this tool to set the right repayment tenure to ensure that you don’t fall behind on your EMI payments or fail to meet your other financial obligations. You can run different combinations of the repayment tenure and principal amount through the calculator to arrive at a favourable EMI amount – one that will not overburden your pocket.

Summing It Up

Foresight and planning are important when applying for a bike loan. The absence of these crucial components can overburden your finances. You can avoid this by using an online bike EMI calculator. This digital tool is easily accessible on lender and aggregator websites and can be used absolutely free of charge to calculate monthly instalments. You can use the tool to compare loan offers and pick one that allows you to buy your dream bike on EMI without straining your finances. For instance, Bajaj Finserv offers two-wheeler loans with the maximum loan amount being ₹20 Lakhs. Additionally, the repayment tenor ranges from 12 months to 60 months, and you can get up to 100% financing of the on-road price. With competitive interest rates (starting from just 9.25%) and flexible repayment terms, you can calculate and choose an EMI amount that won’t disrupt your monthly budget.

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