There are different types of bikes available in the market right from ordinary ones to high-end models. Whatever the bike type you aim to purchase, sometimes your savings may not be enough for this. In such situations, financing your bike is only possible with the help of a bike loan. While receiving a bike loan the first thing that will concern you is the payback structure or the monthly EMIS you will require to pay. Lack of knowledge of your EMIs will throw you into a situation of financial crunch in the future. So, to avoid this you can take the help of an emi calculator for bike loans to understand your monthly installments.
What is it?
You can make an assessment of your loan with the help of an online EMI calculator. It is an online device that is free and is featured on every lender’s website. Moreover, you can access it unlimited times to adjust your values.
The equated monthly installments against your bike loan will depend on several factors. This loan calculator will give insight into how much you can afford per month to pay off your loan with the best interest rate.
It is a user-friendly tool. You will need to fill out the details of your loan information in this online calculator. Once you provided the details the calculator will automatically reflect your monthly EMI amounts. It also provides additional information on your bike loan such as the total interest payable on each EMIs and the amortization structure, which means how the loan payments will be distributed over time.
Factors comprising your EMI schedule
Principal loan amount
It refers to the total loan amount you are planning to borrow. If you borrow higher amounts your EMIs will also be higher. If you want your EMIs to become affordable for you, then borrow within the limit. In the emi calculator for bike loan, you will need to put this amount of your choice.
The interest rate on the loan
When you will pay back the principal loan amount, you will need to pay some interest rate as well. Your lender will charge interest on the amount you borrow at a rate that will be fixed at the time of obtaining the bike loan. A higher rate of interest will result in higher EMIs. You cannot change this interest rate as this will be decided by your lender. But you can compare interest rates from various lenders through this online calculator to choose the one which looks most affordable for you.
Tenure or duration of the loan
It refers to the entire loan repayment duration of your bike loan. A shorter tenure will result in higher EMIs while a longer tenure will result in lower EMIs. It depends on your individual financial condition whether you want a shorter loan tenure or a longer one. If you are on a tight budget, it is better to extend your EMI duration. You can adjust your bike loan period on the online calculator to check your EMI amounts. Just bear in mind that even if your repayment period is long, it will accrue a high rate of interest.
When it comes to the down payment, you will have to pay it straightway to the lender. If you are worried about paying your glamour down payment, let us tell you it will be charged as minimal. Most of the lenders offer 90 percent loan coverage to the bike amount. The remaining amount covers the RTO charges and the insurance formalities. So, the down payment is a lump sum amount about which you should not worry.
Wrap up
This emi calculator for bike loan can give you a detailed analysis of your loan repayments in a much simpler manner. You can plan your future finances surrounding your bike loan with this online tool.
