A two-wheeler makes it simple to navigate through city traffic. Your journey time and costs are reduced, and parking becomes simple. You can use two-wheeler loans to purchase a geared bike or a scooter.
This article aims to define a two-wheeler loan and comprehend the variables influencing the interest rates on two-wheeler vehicle loans. Plus, before submitting your loan application, learn how to use a bike loan calculator.
What is a Two-Wheeler Loan?
Financial institutions provide a financial product known as a two-wheeler loan. You can obtain a two-wheeler loan if you want to purchase a new bike or scooter.
90% to 100% of the vehicle’s on-road cost is provided by the lender as the loan’s capital, and interest is charged on the total amount borrowed. You can repay the debt as the borrower over terms of up to 5 years with affordable Equated Monthly Installments (EMIs). Interested in a bike loan Apply online.
How to Calculate EMI for Bike Loan?
Interest rates for two-wheeler loans begin at 10.65% per year. You can directly determine your two-wheeler loan interest rate using a mathematical formula or the two wheeler loan EMI calculator.
The mathematical formula to calculate the bike loan EMI is as follows:
E = EMI
P= Principal Loan Amount
R= Rate of Interest
N= Loan Tenure (in months)
Want an easy way? Simply use the EMI calculator.
How to Use a Two-Wheeler Loan EMI Calculator?
You can calculate the potential EMI payable against the loan sum borrowed using a free online tool called a two-wheeler loan EMI calculator.
Once you enter the required details, the EMI calculator for scooters and bikes automatically computes the EMI amount payable within seconds. To use a bike loan EMI calculator, all you need to do is enter the three necessary information—principal loan amount, interest rate, and loan tenure—and press the “submit” option. The amortization schedule, which includes information on the principal amount and the monthly interest component, will appear on your screen.
The calculator instantly calculates the EMI due based on variables of the fundamental loan components, such as the principal amount, interest rate, and repayment period.
The steps to calculate loan EMI payable against your bike loan are listed below:
- Visit the loan provider’s official website and locate the bike loan EMI calculator.
- Enter the loan amount (do not exceed the maximum amount limit).
- Enter the rate of interest in the online calculator.
- Choose the preferred bike loan repayment tenure in the calculator. While the maximum repayment period cannot surpass five years, the minimum repayment period should not be less than one year.
The EMI calculator for bikes and scooters calculates the EMI amount due instantly after you input the necessary information.
A bike loan application has always been challenging. Get an affordable loan interest rate by submitting an online loan application. Use the free bike loan calculator to start the two-wheeler loan application procedure.
A quick tip: Keep in mind the 50/30/20 budgeting guideline. This rule states that a person should allocate 50% of his money to basic needs, 30% to wants, and 20% to savings. Consider this and start your loan application right away.