Are you planning to buy a bike but postponing it because you aren’t sure about the monthly installment costs? If yes, then bid goodbye to such worries....
By using our bike loan EMI calculator, you can quickly check your monthly EMI cost and chart your way towards managing your finances accordingly.
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| Month | Opening Balance | Interest | Principal | Closing Balance |
|---|---|---|---|---|
| Dec '21 | ₹ 2,00,000 | ₹ 2,833 | ₹ 32,171 | ₹ 1,67,828 |
| Jan '22 | ₹ 1,67,828 | ₹ 2,378 | ₹ 32,627 | ₹ 1,35,200 |
| Feb '22 | ₹ 1,35,200 | ₹ 1,915 | ₹ 33,089 | ₹ 1,02,111 |
| Mar '22 | ₹ 1,02,111 | ₹ 1,447 | ₹ 33,558 | ₹ 68,552 |
| Apr '22 | ₹ 68,552 | ₹ 971 | ₹ 34,033 | ₹ 34,518 |
| May '22 | ₹ 34,518 | ₹ 489 | ₹ 34,515 | ₹0.00 |
Money View’s Bike Loan EMI calculator is effective and user-friendly. With our two-wheeler loan EMI calculator, you can check the EMI installment that you have to pay and its breakdown too. The displayed breakdown also known as the amortization schedule is based on the interest rate slabs, tenure of repayment, and the sum borrowed.
You can use the Money View bike loan EMI calculator to check your EMI. All you need to do is enter the amount that you wish to borrow from the lender, followed by the interest rate and the repayment duration or tenure. Once you include these details, you can check your EMI rate and also the breakdown of your installments.
Like a personal loan or a home loan, even bike loans need to be repaid via monthly EMIs till the repayment tenure is complete. The EMI is sometimes a fixed amount and sometimes a variable amount. The EMI rates are fixed as per the borrowed amount and the interest rate. Also, the borrower’s credit score plays a major role in deciding the interest rate and repayment tenure.
You can check out our bike loan EMI calculator to find out all the details about your loan. Follow the steps given below to find out what your monthly EMI rate will be so that you can manage your finances accordingly :
Enter the loan amount and adjust it by using the slider.
Add the charged interest rate. You can again adjust it via the slider.
Enter the repayment tenure. You can enter the tenure in months or years.
After completing the above steps, your EMI amount will be shown. It will even display your EMI repayment schedule.
Our Money View bike loan EMI calculator is equipped with features such as instant EMI calculation. So, you won’t have to worry about errors in the calculations. Now, if you have decided to finally buy a bike, then by checking your EMI rates, you will be able to plan your finances as per your convenience and get the bike without any challenges.
If you wish to know the formula for calculating an EMI, then you can check it below:
P x R x (1+R)N / [(1+R)^N-1]
P: Principal Amount
R: Rate of Interest
N: Number of Months or Repayment Tenure
For example, let’s say Mr. Vijay has borrowed a sum of Rs. 5,00,000 (P) with 10.5% rate of interest imposed (R), and the offered a repayment tenure (n) of 60 months is the tenure, then he can check his EMI by using the following formula:
5,00,000 x 0.00875 x (1+0.00875)^60 / [(1+0.00875)^60-1] = Rs. 10,747
Please note that the interest rate is calculated monthly by using the formula given below:
Annual Rate of Interest/12/100
So, to calculate it for this case, it will be (10.5/12/100 = 0.00875)
This formula can be used to calculate EMIs for all types of loans.
The loan principal or the borrowed amount is one of the crucial determinants taken into consideration while setting the EMI. This calculation is based on two methods. They are as follows:
Flat Balance Method
Reducing Balance Interest Rate Method
Flat Balance Method: The interest rate is charged on the total loan amount and the entire repayment tenure. As a result, the EMI amount will not change throughout the repayment tenure.
Reducing Balance Interest Rate Method: The interest rate charged is based on the outstanding principal amount. In this method, the interest is not charged on the borrowed amount and keeps decreasing with each payment throughout the loan repayment tenure. Most banks usually use this method to calculate EMIs. Even the Money View bike loan calculator uses this method.
There are various factors that affect bike loan EMI. Check them below:
Credit Score and Rate of Interest: The three-digit numerical summary that is found in an individual’s credit report is known as credit score. This report contains the individual’s previous loan details and repayment and financial habits. If an individual’s credit score is 700 or above, then it is considered to be a good score. It also becomes easy for the person to get a loan at a lower interest rate and a convenient repayment tenure.
Residency: The location of your residence is also sometimes taken into account while determining the interest rate for your two-wheeler loan EMI. This determinant is applied to check the debt-to-income ratio. For example, if you stay in a metro city like Bangalore, your cost-of-living will also be more than an individual who lives in a Tier Two city. As a result, it will be assumed that your salary will also be higher, and, so, you will be able to repay your loan without any issue. Some lenders also offer prepayment concessions that are based on factors such as how soon you can repay your loan.
Type of Loan: There are two types of loans - a secured loan and an unsecured loan. Depending on the type of your loan, your interest rate will differ. Unsecured loans usually have higher interest rates. So, lower the interest rate, lower will be your EMI rate.
Down Payment: Down payment refers to the sum that you give to the bike dealer or the bike showroom while purchasing your bike. If you have given 60% of the amount, then your loan amount will also be less. This might prompt the lender to offer you a lower interest rate. If you wish to get 100% of the purchasing amount, then your interest rate might be on a higher scale.
Loan Amount: The EMI rate depends on the amount that is borrowed. So, the higher the amount borrowed, the higher will be the interest rate and the EMI rate.
Repayment Tenure: If your repayment tenure is long, then your monthly EMI will also be less and vice versa.
A bike loan is a loan that will help you purchase any two-wheeler of your liking. This loan can be availed by any applicant above the age of 18 as long as he/she meets the eligibility criteria set by the lender. The loan amount can be repaid in monthly installments.
EMI stands for Equated Monthly Installment. This is the amount of money that you need to pay monthly to repay a loan. This amount is based on the loan amount, and the interest levied on it. The fixed amount must be paid to the lender on a specific date of every month during the repayment tenure.
Amortization Schedule is a table that shows the periodic loan payments that are to be made during the repayment tenure. It also displays the principal amount and the rate of interest that is levied on an EMI during the repayment tenure.
A bike loan amount can be reduced by borrowing a lower amount. You can also reduce it through a longer repayment tenure. However, if your repayment tenure is longer, your rate of interest will be higher with time. If you have a good credit score, you can negotiate for a lower interest rate. With each payment, your interest rate can also keep decreasing, and thus your EMI rate.
If an individual does not pay his/her EMI, then he/she will have to pay a hefty penalty in the form of additional interest. The added interest will pile up on the unpaid amount. He/she will also have to pay delayed payment fees. The lapse in payment will also be added to the credit report, which can harm the borrower’s credit score making it difficult for him/her to avail of different loans.
There are two ways by which customers can reduce the EMI amount.
If an individual makes a prepayment on the loan amount, then the repayment amount will get reduced.
If the borrower asks the lender for an extension on the repayment tenure, then the EMI amount will get reduced.
If you wish to avail of a bike loan, you will find several lenders in the market offering irresistible deals and rates of interest. However, the hidden charges levied on most of them are not displayed. At Money View, we believe in transparency and uncompromised customer service. And hence, at Money View, bike loans can be availed at a low-interest rate. The borrower can also choose the repayment tenure at his/her convenience. It can be even extended to a period of up to 5 years. The process is secure as well as paperless.
