While buying a moped or premium cruiser might have long been on your wishlist, budget constraints may have prevented you from purchasing your dream bike. However, with the easy availability of two-wheeler finance, you don’t have to restrict your choice due to insufficient funds or dig into your savings to buy a new bike.  

It is important to remember that when you purchase a new bike or scooter with a two-wheeler loan, the total cost of the vehicle gets converted into EMIs. The payable EMI value depends on factors such as the principal sum, applicable two-wheeler loan interest rate and tenure of the loan. Budgeting these EMI payments and borrowing only within one’s affordability limits is essential. The easiest way to do this is with the help of a bike loan EMI calculator. 

What is a Bike Loan EMI Calculator?

A bike loan EMI calculator is a digital tool that can calculate your EMIs liabilities for a two-wheeler loan. This tool takes into account crucial information like the principal sum borrowed, two-wheeler loan interest rate and loan duration to compute your EMI payments. Knowing your EMI liabilities helps you better plan your monthly expenses. 

Why Should I Use an Online Bike Loan EMI Calculator?

Check for Feasibility 

When buying a bike on EMI, the cost of the model gets divided into monthly installments. However, you need to ensure that these EMIs remain manageable. Borrowing a substantial amount to finance your dream two-wheeler can be detrimental to your finances. A bike loan EMI calculator helps ensure that your two-wheeler loan remains within your fiscal feasibility limits. In other words, it prevents you from overburdening your finances. If the EMI payment displayed by the bike loan EMI calculator is too high, you can easily alter the loan tenure until you find the desired EMI value. 

Helps in Fiscal Planning 

Most borrowers will have existing financial commitments and monthly payment liabilities that need to be met. Adding another expense to the already existing home loan EMIs, credit card bills, utility expenses, and general monthly costs is a significant burden. Thus, planning and budgeting are crucial when applying for a new two-wheeler loan. With a bike loan EMI calculator, you can estimate your monthly EMI liabilities even before you apply for the loan. Knowing your EMI payments beforehand will allow you to allocate funds in your budget accordingly, preventing a situation where you have inadequate funds for other expenses.  

Side-Step Defaulting Issues

With diligent fiscal planning in place, you’ll be more likely to pay your EMIs on time. This will help reduce your chances of defaulting on the loan. Additionally, repaying your EMIs on time will also help boost your credit score and improve your chances of securing loans at lower rates in the future. 

Precise Results

While you can fall back on manual EMI calculations, such calculations have a larger error margin. Since even a small error can cost you dearly, it’s best to avoid such risks and use a digital tool to take care of such calculations. A bike loan EMI calculator helps bypass such errors by displaying accurate and precise results each time it is used. 

Helps Pick a Suitable Loan tenure

Apart from your two-wheeler loan interest rate, your loan tenure also plays a crucial role in determining your EMI payments. While picking a short repayment tenure can drive up EMIs and overburden your finances, a long tenure can hike up interest payments. A bike loan EMI calculator can be used to strike the perfect balance between manageable EMI payments and well-budgeted interest payments. This tool can run various repayment durations to see how your EMI and payable interest change. This will help you pick a tenure that doesn’t come with exorbitant EMIs or sizable interest payments in the long run. 

Convenient to Use

A bike loan EMI calculator ensures that you don’t need to spend hours solving complicated equations to figure out your loan EMIs. This tool delivers precise information on the basis of just a few key parameters, saving you the hassle of long manual calculations. Additionally, this estimation process becomes easier because you can access this tool online, completely free of charge and run multiple simulations until you figure out a desirable EMI option. 

Handy for Loan Comparisons 

Your two-wheeler loan interest rate plays an important role in determining your total EMI expenses. Since different lenders offer different two-wheeler loan interest rates, comparing these rates beforehand may be a prudent choice. A bike loan EMI calculator can help you do this, that too, in a matter of seconds. You can fill in the different two-wheeler loan interest rates offered by different banks and NBFCs to see which loan offer comes with the most affordable EMIs. You can also alter tenures and principal amounts to find the best loan offer that suits your budgeting needs.   

Steps to Use a Bike Loan EMI Calculator

Using a bike loan EMI calculator is quite easy. Here’s a step-by-step guide to help you through this process.

Step 1: Visit any lender website to access their bike loan EMI calculator

Step 2: Enter your loan amount in the field marked ‘Amount’

Step 3: Fill in the applicable two-wheeler loan interest rate 

Step 4: Enter your preferred loan tenure

Step 5: Press the ‘Calculate’ button

To Conclude

Given the myriad of benefits bike loan EMI calculators offer, using this tool before applying for a two-wheeler loan can make your life easier. From budgeting your expenses to picking a favourable tenure, bike loan EMI calculators help rationalise the whole borrowing process. Moreover, some of these EMI calculators also display the amortisation schedule for the loan. In other words, they help you understand the principal-to-interest ratio in your EMI payments as the loan tenure progresses. For instance, you can use the Bajaj Markets bike loan EMI calculator to review this information, especially if you wish to prepay the loan before the tenure ends. You can also opt for a bike loan and avail of attractive two-wheeler loan interest rates starting from just 9.25%.