When you decide to buy a bike or apply for a bike loan, the first thing financial experts recommend is that you prepare a budget. But how would you go about preparing this budget? You will surely use a two-wheeler loan EMI calculator. Despite the fact that many people are aware of its use and benefits, there are still many who have questions about it. Today in this post, we will talk about the common queries that revolve around a two-wheeler loan EMI calculator.
Common Queries Revolving Two-Wheeler Loan EMI Calculator
Q1. What is a Two-Wheeler Loan EMI Calculator?
A two wheeler loan EMI calculator is an online tool for determining your monthly debt repayment obligations towards the lender. You can easily find this calculator on the website of two-wheeler loan providers or bike loan aggregators. To use this calculator, having a loan approval letter in your hand is not necessary. Furthermore, you can utilize this tool without having to spend any money.
- 2. What information do I need to use the Two-Wheeler Loan EMI Calculator?
To utilize a two-wheeler loan EMI calculator, you will only require three variables that are as follows.
- Sanctioned or desired loan amount.
- Desired loan term or the loan tenure mentioned on your two-wheeler loan agreement.
- The interest rate, specified in your loan agreement or mentioned on the website of the financial institution.
Once you input these variables, the calculator will display the applicable EMI.
- 3. Is it possible to change my inputs on a two-wheeler loan EMI calculator? If yes, how many times am I allowed to do so?
Since the two-wheeler loan EMI calculator is a customised tool, you can change the inputs for n number of times. In fact, it is advised that to arrive at a perfect EMI, you should use the calculator with different combinations of loan tenures and amounts. Keep changing the numbers until you get your ideal EMI that fits comfortably into your budget.
- 4. What are the steps involved in utilizing a two-wheeler loan EMI calculator to calculate EMI?
If you think calculating your monthly repayment obligation is tough, here are the steps you need to keep in mind while calculating your EMI.
Visit the website of any two-wheeler loan provider and scroll down to the EMI calculator tool.
On the calculator, use the slider to choose the desired loan amount. Make sure the amount you choose is within the lender’s offering.
In the next step, select the loan tenure using the slider. Choose the tenure within which you are comfortable repaying your debt.
Enter the interest rate mentioned on your loan agreement. If you haven’t applied for a loan yet, enter one by one the minimum and the maximum rate available on the lender’s website.
Click on the submit button, and the calculator will display the amortisation schedule.
- 5. What is the amortisation schedule provided by your two-wheeler loan EMI calculator?
The amortisation table is a compilation of all your scheduled EMI payment in a single table. It shows how much amount you are paying towards principal repayment and how much towards interest payment.
- 6. What if I want to calculate my EMI manually? Is there any way I can do so?
Yes, you can calculate your monthly instalments manually using a mathematical formula. In fact, the two wheeler loan EMI calculator is also based on the mathematical formula that is outlined below.
EMI = P × r × (1 + r)n/((1 + r)n – 1)
P means two-wheeler loan amount,
r means two-wheeler rate of interest, and
n means two-wheeler loan repayment tenure.
However, keep in mind that preparing an amortisation schedule with this technique is quite difficult, with a high risk of human errors in the results.
- 7. How can I use the two-wheeler loan EMI calculator for choosing the ideal lender?
The repayment term and interest rate on a two-wheeler loan vary from one lending institution to the next. When you use the calculator using different combinations of interest rate and tenure, you can easily find out which lender’s offer and EMI are within your budget.
- 8. What are some of the benefits of using a two-wheeler loan EMI calculator?
A two-wheeler loan EMI calculator comes with a host of advantages. Some of its benefits are listed below.
- It assists in comparing the interest rate and offers of various lenders.
- You can manage your budget effectively.
- The calculator helps to determine EMI even before applying for the loan.
- It will help you figure out how much you can spend on a bike.
If you have any concerns about a two-wheeler loan EMI calculator, we are confident that after reading this post, all of your concerns will be resolved. So, whether you have just applied for a bike loan or plan to in the near future, don’t forget to use this calculator.