India is home to the highest number of two-wheelers in the world. Owing to the economical and logistical conditions, Indians prefer owning a two-wheeler as means of conveyance. For most of us, a bike or a scooter is also the primary vehicle to travel. Over the last decade or so, biking has become a serious business in the country. With the entry of so many international brands in India, the average Indian is spoilt with choices when we talk about owning a motorcycle or a scooter. On the flipside, owning one has become an expensive affair and it makes sense to take a loan to own one. Nearly all major banks in the country offer loans for two-wheelers as a part of their retail lending portfolio.
Before choosing a specific lender, it's paramount to understand the product and its financials to make sure we select the most appropriate terms. With the advent of online banking, making financial decisions has not only become easier, but also banking as a process has become extremely transparent and simple. For the enhanced convenience of customers, leading insurance providers, banks and third party financial websites offer a dynamic tool on their portal called the loan EMI calculator. The tool available on this website offers the most comprehensive assistance with regard to the monetary aspects involved in two-wheeler loan.
Also Read: Two Wheeler Insurance.
What is an EMI Calculator?
A two-wheeler loan EMI calculator is an online tool designed to calculate the EMI amount payable towards clearing the loan. You need to simply fill the financial details to get the required information. Once you enter all these details correctly, you can see the auto-computed EMI amount.
In addition to the EMI amount, you get a bunch of additional information to aid your quest to choose the most suitable terms. Once you know the amount of EMI you have to pay every month, you can plan your monthly budget accordingly.
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Advantages of Using EMI Calculator while Applying foe for Bike Loan:
The benefits of using an EMI calculator are plenty. Let's explore some of the most prominent ones.
Helps in knowing the EMI value:
The primary use of this tool is to know the precise amount you will be paying every month. Getting the numbers beforehand helps in sorting your monthly budget. It eliminates the need for manual calculations and ensures accurate results.
Aids in choosing the term:
Once you have a definite EMI amount, it becomes a lot easier to choose the tenure of the loan. If you feel the value is a burden on your wallet, a higher tenure will do the trick by proportionately bringing down the value.
Helps in comparison:
If you’ve been offered loan from two or more banks for the motorcycle purchase, using this tool to compare the costs involved will do the trick by helping you choose the most suitable loan offer. Get the quote, use the calculator and jot down the outcome to compare on specific parameters.
Helps in negotiating:
Once you’re armed with the basics of the financials involved, it helps in negotiating key terms of the two-wheeler loan with the bank. Components such as rate of interest, processing fee and others can be easily negotiated after establishing the ground.
Provides a break up of costs:
This free-to-use tool not only provides the EMI value, but also offers useful information such as breakup of the charges involved in the loan such as interest and processing fee.
Two Wheeler Loan EMI Amortization Table:
The most visible use of this tool is the amortization table which provides month wise breakup of principal and interest charges that go into calculating the EMI amount.
How to use Bike Loan EMI Calculator?
An easy-to-use calculator, this tool lets you get the desired results in just under a minute. Before using this tool, gather information such as the proposed loan amount, loan tenure, interest and processing fee (both in percentage). Once you have these details handy, follow the steps below to get the required results.
- On scale 1 titled Loan Amount, use the slider to freeze the principal loan amount. Move the scale slowly to ensure you select the correct amount. The result is displayed at the end of the scale.
- In a similar manner, use scale 2 titled Tenure and freeze the tenure of the loan in months.
- In the following tabs, input the interest rate and processing fee using the numeric keypad and click “Calculate”.
Elaborate details relating to the loan breakup which include the EMI value is instantly displayed for review. The tool can be reused to compare two-wheelers loan offers from various banks.
Getting a two-wheeler can be an exciting experience. Understanding the product and the monetary components helps you in signing up for the right two-wheeler loan and enjoy the goodness of your new motorcycle.
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