With the social distancing norms of the COVID-19 pandemic, buying a two-wheeler is the best option to protect yourself and your loved ones. Instead of travelling by public buses and metros, you can use a two-wheeler and easily navigate the daily traffic. However, due to financial instability induced by the pandemic, purchasing a bike can be an expensive affair.
If you have no other means of managing your finances after purchasing a bike, you can acquire auto loan and reduce the burden on your pocket. The interest rates are low, and the EMIs are easily manageable. But, before taking a two-wheeler loan, you must assess your needs and determine an affordable EMI. An online bike EMI calculator can help you plan your budget.
What is an online bike EMI calculator?
A bike loan EMI calculator is an online financial tool provided by both banks and non-banking financial companies to help you plan your EMIs based on their needs and preference. By adding different components of a loan, you can instantly decide on an EMI amount for yourself.
The best part about bike EMI calculators is that they allow you to compare different lenders’ offers from the comfort of your home. It does not require you to visit any bank or NBFC to determine which loan you should choose. It makes the decision-making process to select a suitable EMI convenient and faster.
How to choose a bike loan using a bike EMI calculator?
It is simple, easy, and convenient to calculate your bike loan EMIs. Follow the underlying steps to understand how the EMI calculator works and what you can do to figure out your EMIs.
Step 1: Check your eligibility
The first thing you need to do is to check if you are eligible for a bike loan. Every lender provides their eligibility criteria on their web portal. You can visit your lender’s website and fill an electronic form to check if you are eligible or not.
Step 2: Enter the principal loan amount
After finding that you can apply for a two-wheeler loan, visit the bike EMI calculator and enter the principal amount. The principal amount is the loan amount that you wish to get from the lender.
Step 3: Enter the interest rate.
It is a crucial stage to pay attention to. Every lender has the lowest and highest interest rate. You will have to choose a rate that you wish to receive. However, it is worth noting that a lower interest rate is dependent on factors like your age, source of income, credit score, current financial obligations, etc.
Step 4: Enter the repayment tenure.
The repayment tenure is the time within which you are supposed to repay the loan amount. Lenders may offer you to repay within 12 to 48 months from the date of loan disbursal. The loan tenure range is already given on the calculator.
Step 5: Click Submit
After entering the principal amount, interest rate, and loan tenure, you will need to click Submit to get an estimated EMI amount you will need to pay within the chosen loan tenure. You can alter their values as many times as you want until you reach a suitable EMI.
The above said steps are common across all platforms. If not, you can follow instructions given on how to use the self-explanatory EMI calculator.
Benefits of bike loan EMI calculator
There are several benefits of a bike EMI calculator, such as determining a repayment amount that works for you.
The bike loan EMI calculator lets you determine if you can afford to repay the loan without any default. If you can not, you have the option to adjust the values multiple times until you reach an EMI based on your affordability.
It also enables you to plan your monthly budget and ensure on-time repayments without delays and defaults. Planning your budget allows you to focus on meeting other financial requirements at home.
Another benefit of using a two-wheeler loan EMI calculator is that you do not need to calculate your EMIs manually. Manual calculators take a lot of your time, and you may make mistakes while calculating your EMIs.
Since you do not need to add your details like your name, date of birth, contact number, email, and address, it is safe to use.
If you are confused about which bike loan to opt for, you can use an online bike EMI calculator to decide which lender offers the best deal. Comparing several lenders’ offers with an EMI calculator can help you make an informed decision.