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.
How Does Our Bike Loan EMI Calculator Work?
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
Enter the loan amount and adjust it by using the slider.
Add the charged interest rate. You can again adjust it via the
Enter the repayment tenure. You can enter the tenure in months or
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.
Bike Loan EMI Calculation Formula
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.
Difference Between Flat Balance and Reducing Balance Interest
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: 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.
Factors that Affect Bike Loan EMI
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
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
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.