A Bike Loan refers to a loan granted by lending institutions to enable an individual to purchase a two-wheeler with minimal down payment. It not only makes a bike purchase affordable but also helps to repay the loan easily with flexible tenures of up to 48 months.
Most buyers take 60-70% of their vehicle’s on-road price as a loan. However, new-age NBFCs provide up to 95% of the amount to eligible applicants. Bike Loans aren’t complicated if one knows the eligibility requirements. It can help them get the lowest Bike Loan interest rates. An applicant must be above 18 years of age (in most cases). They must have a regular flow of income and a reliable repayment history if they have any existing loans.
Before applying, calculating an accurate estimate of the EMI is vital to plan the entire course of the loan repayment. The EMI amount depends on various factors, including the down-payment amount, the duration of loan tenure, and the lender’s interest rates.
Can Bike Loan EMIs be calculated manually?
Absolutely. One can calculate the standard EMI amount with accurate figures of the principal amount, interest rate, and loan duration. The following is the formula to calculate it manually:
P x R x [(1 + R) N / ((1 + R) N – 1]. Here, P denotes the loan’s principal amount. R is the applicable interest rate, and N is the loan’s duration (in months).
The principal amount refers to the total amount payable to the lending institution, including the borrowed amount and the applied interest.
Almost all applicants consider a few lending institutions with varying interest rates before they filter the best option. Calculating the interest rates and comparing the financing options can make it arduous.
The efficient way to calculate Bike Loans:
This is where the online loan calculator for bike can help loan applicants. A Bike Loan Calculator allows users to instantaneously calculate and compare the EMIs of all their different financing options. All they have to do is enter the three factors: principal amount, interest rate, and loan tenure. The calculator will then instantaneously reveal the EMI amount of the prospective loan.
Loan applicants usually research a lot before applying. Using a calculator helps them make a well-informed borrowing decision.
A Bike Loan Calculator is not just a means to run a few numbers and help with calculations. It is an efficient decision-making tool. Here are some solid reasons to consider a Bike Loan Calculator.
How a Bike Loan Calculator allows users to compare financing options easily:
Instantaneous and accurate EMI figures:
As mentioned, a Bike Loan Calculator lets users plan by making everything predictable and easy. There is no need to remain confused, talk to a million people, or exhaust themselves by calculating the EMIs. It allows prospective loan applicants to narrow their options to the lowest Bike Loan interest rates without hassles. This allows them to be more careful with their repayments and maintain excellent credit scores.
Easy accessibility:
A Bike Loan Calculator is highly accessible for anyone to use. It is available on the websites of top NBFCs and lending institutions. One can even download an application on their smartphone and quickly compare all the financing options.
Almost all Bike Loan Calculators are reliable. However, using a Bike Loan Calculator on a reliable lending institution’s website is always better. Most lending institutions offering Bike Loans will have a loan calculator on their websites.
Complete clarity and EMI breakdowns:
A knowledgeable applicant will always make a borrowing decision after being fully informed. A Calculator for Bike Loans helps such applicants. It continues beyond helping a user arrive at the monthly payment amount. It can also generate a whole amortisation schedule that breaks down the repayment structures, including the interest and principal. This helps get clarity on EMI breakup and repayment plans.
Conclusion
Bike Loans are usually easy to apply and avail. Lending institutions allow up to four years for repayment. Those with a monthly income of Rs 8000 can easily get a Bike Loan. Before applying, applicants can use a Bike Loan Calculator to compare all their financing options and make a wise borrowing decision.
