Bike Loan EMI Calculator

While you can calculate EMIs manually with a formula, but it can be tedious and time-consuming. Using a bike loan EMI calculator is a simpler way to check your probable monthly instalments. Simply, enter the loan amount, tenure, and interest rate in the tool to find out the EMI within seconds.

You may also use the formula to calculate your EMI for a two-wheeler loan.

Here is the formula that you need to use.

EMI = [P x R x (1+R)N]/[(1+R)N-1]

Where,

• P represents the principal loan amount 

• R stands for the monthly interest rate

• N denotes the number of monthly instalments

To avoid complicated manual calculations, consider using a bike loan EMI calculator. Financial institutions usually provide EMI calculators on their websites. The tool ensures that you do not have to go through the error-prone process of calculating your EMIs manually. Use the two-wheeler loan EMI calculator to get a quick and more accurate result. 

 

Let’s understand this with an example. Let’s say you are taking a loan of ₹1 Lakh for a tenure of 12 months at an interest rate of 9% p.a. Simply, fill in these details in the EMI calculator. It will generate the result in seconds, in this case, the EMI will be ₹8,745. Let’s see how the EMI changes over different tenures and loan amounts.

*Disclaimer: The mentioned values are rough estimates and may differ. Check the EMI amount with your lender prior to making any financial decisions.

Here are some important factors that may affect your bike loan EMI:

• CIBIL Score

The CIBIL score is an important factor lenders consider before providing a bike loan. Your CIBIL score assists the lender in evaluating your creditworthiness. You must have a good CIBIL score of about 750 or more to get a bike loan at favourable terms.

• Rate of Interest

Your bike EMI is also influenced by the interest rate offered by the lender. The greater the interest rate, the more you will have to pay in total.

• Duration of the Bike Loan

The amount of your bike EMI is based on your loan tenure as well. The longer the tenure, the lower the EMIs will be.

Here are the ways to reduce your monthly Bike EMI:

• Make a Higher Down Payment 

If you can pay a large sum, consider paying a considerable amount as your down payment. It will decrease your loan amount, and as a result, you will have a reduced EMI.

• Select an Offer with a Lower Interest Rate

Your monthly payments will be lowered if you choose a loan offer with a lower interest rate.

• Choose a Longer Tenure

Your EMIs lower substantially over a longer tenure. However, the interest cost incurred over the entire tenure may increase. Choose a tenure that balances the interest costs and your EMI amount.

The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm the values with your lender prior to applying for the bike loan.