How to Calculate EMI for Bike Loan: Tips and Tricks
29 Aug 2022
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A two-wheeler is a compact vehicle that gives excellent mileage and allows you to navigate through city traffic easily. It cuts down your travelling time and expenses while you can find parking easily. Whether you wish to buy a geared bike or a scooter, you can do so with two-wheeler loans. Let's understand what they are and learn about the factors affecting Two-Wheeler Vehicle Loan interest rates. Also, find out how to use a Bike Loan EMI calculator before sending your loan application.
What Is A Two-Wheeler Loan?
A Two-Wheeler Loan is a financial facility offered by banks and Non-Banking Financial Companies (NBFCs). If you wish to buy a new bike or scooter, you can take a two-wheeler loan.
The lender provides 90% to 100% of the vehicle's on-road price as the principal amount and levies interest on the amount loaned. As the borrower, you can repay the loan in pocket-friendly, Equated Monthly Instalments (EMIs) over tenures lasting up to 5 years.
Key Factors That Affect Two-Wheeler Loan Interest Rates
The following are the key factors that affect the two-wheeler loan finance you can obtain, and the interest rates offered by the lender.
Your monthly income
Lenders typically assess whether you have the means to repay the loan by gauging your net monthly income and your income-to-debt ratio.
Your credit score
Your credit score shows lenders that you are creditworthy and instils confidence in your loan repayment capacity. The down payment you can pay
As mentioned earlier, lenders provide 90% to 100% of the bike's on-road price as financing. However, high financing typically results in a higher interest rate. Conversely, if you put down a decent down payment, it will reduce your EMI.
The loan tenure you choose
Opting for the maximum loan repayment tenure of 60 months typically results in lower EMIs.
The type of vehicle
How to use Two-Wheeler Loan EMI Calculator?
A Two-Wheeler Loan EMI Calculator is a freely available online tool that allows you to compute the potential EMI payable against the loan amount borrowed. The calculator factors in the basic loan components such as the principal amount, interest rate, and repayment tenure and instantly calculates the EMI payable against variables of the same. Below are the steps to calculate Two-Wheeler Loan EMI payable against your bike loan.
- Visit your chosen lender's website and locate the Bike Loan page, where you will find the Bike Loan EMI Calculator.
- Enter the loan amount you need in the first tab of the calculator, ensuring you do not enter a sum more than the maximum amount offered by the lender.
- Next, you need to enter a reasonable interest rate in the second tab of the calculator. The two-wheeler loan interest rate cannot be lower than the minimum lending rate set by the lender.
- You now need to enter your preferred loan repayment tenure in the third tab of the calculator. While the minimum repayment tenure should not be less than one year, the maximum cannot exceed five years.
- Once you enter the required details, the EMI calculator for scooters and bikes automatically computes the EMI amount payable within seconds.
You can clear all the Bike Loan EMI calculator tabs and enter new variables until you arrive at an affordable EMI amount.
Apply for a Two-Wheeler Loan with Bank of Baroda
Applying for a bike loan is easier than ever with Bank of Baroda Two-Wheeler Loans. Get Bike Loans up to Rs 10 lakhs and repay them in affordable EMIs in tenures lasting up to 5 years. You can apply for the loan online and get competitive Bank of Baroda Bike Loan interest rates. Also use our freely available Bike Loan EMI calculator and begin your loan application process.
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