A bike or a two-wheeler is the most popular mode of personal transport in India. From urban city traffic to unmotorable rural roads, from young college students to entrepreneurs – two-wheelers literally move India.

Not only are mopeds and bikes highly affordable, but they also are very fuel-efficient. They have now become even more affordable and accessible, thanks to the availability of a two-wheeler or bike loan. You can apply for bike loan online, check your eligibility, figure the EMI amount and get an approval for the loan in the least possible time.

What your EMI amount should be

Though the application process is simple, you should carefully select the financing company. Compare the two wheeler loan interest rate and decide on the EMI you want to pay. Make sure you give considerable thought to the EMI amount. This is your commitment towards the loan for the foreseeable future, and you should be able to pay it comfortably without defaulting throughout the tenure.

Additional Read – Important things to Know About Two Wheeler Loan EMIs

As a thumb rule, all your loans and liabilities should not exceed 40% of your take-home pay. If you have multiple loans, the allocation towards the bike loan will be even lower. An efficient way to calculate your monthly allocation for the loan is to use a two wheeler loan EMI calculator.

How does an EMI calculator help?

bike loan calculator

A bike loan EMI calculator is an easy-to-use tool available on most financing companies’ website. It allows you to adjust the key variables associated with the loan to arrive at a customized figure that you can choose based on your budget.

The three variables that impact your EMI amount are:

  • Loan amount: The total amount you intend to borrow (after down payment) from the financing company
  • Rate of interest: This is the interest charged by the lender on the loan
  • Tenure: The number of months or years selected to completely repay the loan

Each of these variables will increase or decrease the EMI amount depending on how high or low you go. The higher the principal loan amount and rate of interest, the bigger the EMI, and vice versa. Alternatively, the shorter the tenure, the bigger the EMI will be, and vice versa.

Additional Read – Choose the Ideal Tenure for Your Two-Wheeler Loan

Do keep in mind that the actual rate of interest will be suggested by the lender after checking your eligibility. Therefore, it is recommended to always estimate the interest rate to be 1% to 2% higher than the base.

You can tinker around with the three components to arrive at a figure you would prefer paying every month. The bike loan calculator will also give you a detailed break-up of what your total interest outlay will be through the tenure of the loan so you can plan your future finances well.

Service on-the-go

The two wheeler loan EMI calculator is a nifty tool that will help you take the maximum advantage of a loan. Tata Capital’s bike loan calculator is available for free. You don’t need to part with your personal information or login for access. This EMI calculator is available on laptops, mobile phones and tablets alike, so you are always prepared for some smart decision-making.

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