Bike EMI Loan Calculator – In 3 Easy Steps Check Interest and Monthly EMI

Want to calculate how much emi per month you need to pay for your new Ola Electric Scooter then using Bike EMI Loan calculator from moneycontain you can easily do so within 3 simple steps.

The Bike EMI Loan Calculator allows you to calculate the monthly EMI, Total interest payable on loan amount with or without down payment done. Let us see how to use the Bike EMI Calculator step by step through an example.

 

How Bike EMI Loan Calculator Works?

To use Bike EMI Loan Calculator you need to enter either the cost of your two Wheler or the total loan amount, next enter the down payment if you are thinking to pay one, next you need to enter the interest rate at which the loan has been granted to you or one can even make an assumption.

Usually, the loan interest rates for two Wheler is ranges between 11-15% per annum. Next is to enter the tenure or loan period and that’s it moneycontain Bike EMI Loan Calculator will give you the details for your monthly EMI’s , total amount payable included the principal amount and the overall interest charges on the loan by your bank/NBFC.

So go ahead and try it yourself below:

 




 

Now that you have known the calculation, it is better you know few other things before applying for any bike loan with any bank or NBFC’s.

Get Instant BIKE Loan Approval at lowest Interest Rates online paper-less and hassle-free within minutes Now!!! 

 

How EMI is calculated for bike?

To calculate the emi of bike you need to aware of few terms as given below:

  1. Loan – A certain amount that is borrowed, and is expected to be paid back with interest.
  2. Principal – The total money owed or the total remaining balance of your loan.
  3. Interest – Interest is the cost of borrowing money for your loan from lenders.
  4. Loan Term/Tenure – The total amount of time it will take to pay off a loan as agreed upon with the lender.
  5. EMI – It is the total amount payable every month until the loan has been fully repaid.

The formula use to calculate Bike EMI is:

The formula –

EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]

EMI
Equated Monthly Payment
P
Principal amount
R
Rate of interest
N
Tenure

 

EMI stands for equated monthly instalment. It is the total amount payable every month until the loan has been fully repaid. EMI consists of a principal amount and interest on the loan.

The principal amount is the original loan amount given to you by the bank, on which the interest will be calculated.

Interest is the cost of borrowing money for your bike loan from lenders.

Applicants for bike loans have to pay back at Adjustable also known as floating or fixed interest rates and other payment terms set by the bank or non-banking financial company. The interest rates policies are set and governed by RBI.

1.Fixed Interest Rates: As the name suggests, in fixed interest rate the rate of interest remains same throughout the loan tenure. Hence, monthly EMI amount also remain fixed throughout the loan repayment period.

2.Adjustable/Floating Interest Rates:  This type of interest rates are usually depends on either the internal benchmark set by the lender or it may also depends on ongoing market conditions.

Therefore, floating interest rate is likely to change systematically which may cause increase/decrease in loan tenure or monthly EMI payouts depending on the movement of the interest rate up and low.

Usually, banks and NBFC’s charges fixed interest rate for bike loans.

Lower the interest rates for your bike loan, lower will be the total amount you pay.

For example: suppose you bought a bike at ₹2,00,000 At, Interest rate of 12 % with tenure (in years) 3 than your EMI for every month with Principal & Interest is  ₹6,642

If you calculate the total money you paid at the end of the tenure of your loan, multiply the EMI of every month with total tenure, which in above case is ₹6,642*36 (3 years)
= ₹2,39,142
so the interest you paid in total over your loan is
2,39,142 – 2,00,000 = ₹39,142
On the other hand, if you can get the same loan at lower interest let say 8.5% instead of 12% than, monthly EMI will be ₹ 6,313 and the total interest you would have paid is ₹ 27,285, you would have saved around ₹11,857.
That is why you should pay close attention to which lender you are choosing and compare them to get the lowest Rate of interest to pay for your Bike loans.

 

Get Instant BIKE Loan Approval at lowest Interest Rates online paper-less and hassle-free within minutes Now!!! 

 

Bike Loan Eligibility Criteria?

Two Wheler loan affordability is influenced by a many factors such as those given below:

Age: A younger individual has a higher chance of getting a higher loan amount approved as compare to an older individual, as a younger person will have more years ahead and with time his chances of earning may increase.

Income: Your income is also an important factor in your home loan eligibility.

Income stability: An individual with a steady and stable income (government) is more likely to get a loan than one with an irregular income (private).

Expenses: Your monthly expenses will also be an factor for you to decide how much loan you can afford. So try to keep it low

Existing EMIs: If there is already an existing loan, than you have to be balance and get rid of that as soon as possible, however if you have paid it without any default this shows the credibility to the lender.

Credit score: A higher credit rating makes the loan approval process faster and easier and vice versa.

Rejected loan applications: If you have had prior loan applications on which you have defaulted, it will negatively impact your credit score, thus reduces the chances of fresh new loan.

Collateral/security: Any collateral like land, gold any fixed investment(FD) that can be used as security will increase your chances of getting a loan and a higher amount as a secured loan is a lot less riskier than an unsecured one.

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How Accurate Is Moneycontain Bike EMI Loan Calculator?

Moneycontain Bike loan emi calculator is as accurate as any other prominent banking website such as ICICI or SBI bank, For a change below is the snapshot I have taken from Honda Two Wheler India website and with similar values I have entered that in moneycontain Bike loan emi calculator, you can check the results for both:

 

 Bike EMI Loan Calculator

 

 Bike EMI Loan Calculator

 

As you can see from the image above the calculation give results accurately, however there was no option to put the down payment in Honda two Wheler website so I kept it zero in moneycontain bike emi loan calculator.

Get Instant BIKE Loan Approval at lowest Interest Rates online paper-less and hassle-free within minutes Now!!! 

 

How To Reduce Bike Loan EMI Amount?

If you want to reduce your overall EMI you need to keep following things in mind:

  • Loan principal – As a rule of thumb, the higher the amount borrowed as a loan, the higher will be your EMI as long as the tenure and interest rate remains constant.
  • Interest rate – The higher the interest rate, the higher will be your individuals EMI pay out as well as the total interest payable on your personal loan.
  • Tenure – When a longer tenure is opted for, individual EMI payments will decrease as compared to a shorter tenure for the same loan. But a longer tenure also results in higher total interest payable over the loan tenure.

 




 

Banks With Low Interest Rates For bike loan?

Below are the details of banks and NBFC which have lowest interest rates for bike loans, having said that these rates keeps on changing time to time, so it is always better to take it as just estimates and contact them for the real time interest rates.

 

Bank
Lowest Interest Rate
Processing fee
Bank of India
8.35% to 9.55%
Rs.500 – Rs.10,000
Punjab National Bank
9.7% to 11.05%
Rs.500 – Rs.1,000
Corporation Bank
10.90% to 12.00%
At the discretion of the bank
Union Bank of India
11.10% to 12.00%
NIL
L&T Finance
10.75% p.a. – 15% p.a.
At L&T discretion
State Bank of India (SBI)
16.05% p.a.
2% of the loan amount + GST
Axis Bank
10.80% – 28.30%
Up to 8% of the loan amount
HDFC Bank
20.90% p.a.
Maximum 3% of the loan amount
Andhra Bank
9.90% to 10.00%
At the discretion of the bank
Bank of Baroda
BRLLR + Strategic Premium + 4.00% i.e. 7% p.a. – 11% p.a.
2% of loan amount minimum Rs.1,000
UCO Bank
10.70% – 11.70% p.a.
1% of the loan amount

 

Get Instant BIKE Loan Approval at lowest Interest Rates online paper-less and hassle-free within minutes Now!!! 

 

FAQ on Bike Loan:

Should I buy My bike on EMI?

If you ask me personally, I would advise anyone, any-day not to go for any loan until it is very critical for you.

Instead, save money or invest in other financial assets ( like Stocks , ETF, fixed deposits, SGB, mutual funds, indexes as long as you can.

Buy anything when you have that amount in your hand instead of taking any loan.

Having said that there is no guarantee as such, I just wanted to present you the another point of view, its your hard earned money, so do proper research before taking any decision.

Can I pay more than my EMI in bike loan?

Yes, you can pay more than the EMI, which is known as part prepayment, this also helps in overall tenure reduction which helps in saving interest.

Can we pay prepayment in bike loan?

Yes, you can make a prepayment in personal loan, but most of the banks will only allow it either 6 months or 1 year completion not before that.

Can my Bike EMI be reduced?

Yes EMI, can be reduced but it is not advisable as the lower EMI will make the longer tenure of the loan which make the more interest .

Get Instant BIKE Loan Approval at lowest Interest Rates online paper-less and hassle-free within minutes Now!!! 

 

Conclusion:

I hope Bike EMI Loan Calculator with other important information would have helped you and saved your time.

Having said that, only opt for loan when you can either repay it on time or early, reason being the interest rates you pay is huge, longer the tenure, if you have invested the same capital in any other financial assets, that you pay for EMI’s every month at the end of the loan period your money would be the same that you have paid interest to the bank.

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In case you want to know how much you need to save every month to reach your financial goals check out Moneycontain Monthly SIP Calculator with inflation here.

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Incase you are looking for any Home loan or want to calculate the monthly EMI, than do check moneycontain free home loan EMI calculator.

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