The Complete Guide To Calculate Two Wheeler Loan EMI

Having a two-wheeler to commute locally has become a necessity with the increasing traffic on the roads and the safety concerns while using public transport after the Coronavirus pandemic. If you have been toying with the idea of buying a two-wheeler but are not sure of how to arrange for the required funds, you can opt for a two-wheeler loan to help you with it. With a two-wheeler loan, you can purchase the bike or scooter of your liking without having to dig deep into your pocket and spend your savings. With a two-wheeler loan EMI calculator, you can decide how much money you want to pay as a down payment from your savings and what would be the EMI for the loan you avail. Let us see in detail everything you would benefit from knowing about bike loans and the calculation of EMI on two-wheeler loans. 

Formula to calculate two-wheeler loan EMI

The formula to calculate your two-wheeler EMI depends primarily on the following factors:

• The amount you wish to take as a loan, or the principal loan amount. 
• The rate of interest that you would have to pay every month on the principal amount. This rate of interest charged is different for different lenders and is based on several factors like your net income, loan amount, credit score, etc. 
• The loan tenure or the duration for which you wish to take the loan. Muthoot Capital offers you a customised duration of up to 48 months on your bike loan. 

How to calculate two-wheeler loan EMI

Calculating your two-wheeler loan EMI can be easy, with the help of a two-wheeler loan EMI calculator. Almost all reputed lenders provide you with a free two-wheeler loan EMI calculator on their web portals, which you can use to calculate the amount of money you will be able to comfortably pay as Equated Monthly Instalment or EMI. Let us see the steps to how you can use this two-wheeler loan EMI calculator:

• Log on to the website of a reputed bike loan lender and go to the two-wheeler loan EMI calculator section. 
• Decide the loan amount you want to take to purchase your two-wheeler. It will depend on the price of the two-wheeler of your choice and the down payment you are willing to make on it. The higher the down payment you make, the lower is the EMI. Some reputed lenders like Muthoot Capital offer you 100% finance on your bike, which is a great deal if you do not wish to part with your savings to make the purchase.
• Select the interest rate the lender is charging on the two-wheeler loan. 
• Select the tenure of the loan. The longer the tenure of the loan, the lower will be the EMI and vice versa. However, long-term loans cost you more than short-term loans because of the higher interest rate charged on them. 
• Just by putting in the loan amount, the chargeable interest rate, and the duration of the loan, you can now calculate your EMI with a click of a button!

There is no rush while using the calculator. You can get comfortable using the tool and adjust the different options on the calculator to reach the ideal EMI amount you wish to pay. 

To calculate the EMI on a two-wheeler loan you wish to take for a bike or scooter of your choice, using an online two–wheeler loan EMI calculator, click here.

Why should you use a  two-wheeler loan EMI calculator?

Using a  two-wheeler loan EMI calculator is a sensible idea if you’re planning to buy a two-wheeler. Here’s why:

• You can use the calculator to see the EMI you will have to pay when you change the tenure of the loan, the chargeable interest rate, or even for different loan amounts. 
• It will help you decide what should be your budget for buying a two-wheeler and save you from overspending by giving you a clear idea of how much money you would have to pay every month as EMI.
• To do all these lengthy calculations, you do not need to sit with paper and a pen and avoid manual calculations completely, making the process very simple for everyone. 
• You can compare the costs for different loan amounts and loan tenures and see where you need to pay the minimum interest.

A  two-wheeler loan EMI calculator is a free tool, and you can use it as many times as you wish to calculate the EMI that would not put pressure on your monthly expenses.