How We Can Calculate Bike Loan EMI Offline and Online?

India is on its way to becoming a developed nation. More than 65% of the nation’s population is below the age of 35. Being a nation teeming with young people, traffic in India consists of more than 54% two-wheeler. So does that mean people still don’t have enough money to spend on items of desire?

That is not the case. The spending capabilities of Indians have improved since India became a global economy. But, the young people of India prefer to spend money on things that wouldn’t become a financial burden.

Owning a car entails additional financial burden in terms of hefty EMIs, interest rates, ownership costs and fuel expenses. On the other hand, owning a scooter or a motorcycle allows one to commute via a personal vehicle. At the same time, a two-wheeler will never become a financial burden on the owner. A two-wheeler is fuel efficient, demands minimal upkeep, sips fuel and is convenient to park in congested areas.

The aforementioned reasons are instrumental in driving the two-wheeler industry of India to a new height of success. However, the two-wheeler brands took this increasing demand and tried to monetize it.

How?

Well, two-wheeler brands have exponentially increased the prices of two-wheelers in the past two years. Presently, even an entry-level two-wheeler entails a price tag of more than INR 90, 000.

Why finance a Two-wheeler?

The exponential increase in prices of two-wheelers also drove the demand for bike loans. Furthermore, a two-wheeler loan also allows one to enjoy the benefits below.

• When one applies for a motorcycle loan, they can get their application approved in a matter of hours. One would not even have to apply for a loan before walking into the dealership. Most dealerships in India have tie-ups with lenders. It means one can finance their favourite two-wheeler onsite. One would not even have to worry about producing physical copies of original documents. Digital copies of KYC documents can be uploaded on-site. How convenient is that?

• Two-wheeler loans entail affordable interest rates, bespoke tenures and bespoke repayment options.
• One wouldn’t be penalized by their lender if they choose to pay the debt before the tenure is up.
• Two-wheeler loans allow one to keep emergency funds intact. One would not need to empty their savings. Or break their Fixed Deposits. In a nutshell, financing a two-wheeler allows one to enjoy a financial cushion. As per the opinion of experts, people who refrain from financing their two-wheelers are committing financial suicide!
• Two-wheeler loans allow one to boost their credit score. Furthermore, two-wheeler loans also allow one to create a spotless credit history. 

How bike loan EMIs are calculated offline and online?

One should be hasty when it comes to applying for a two-wheeler loan. One should always check the tentative EMIs for the loan on a bike loan EMI calculator.

An EMI calculator is a nifty, free-to-use tool available on the websites of a lender or bike portal. These tools allow one to learn the tentative EMI for a loan. Learning the tentative EMI for a two-wheeler loan allows one to choose the best downpayment + tenure combination. Selecting the best downpayment + tenure combination is instrumental in keeping interest rates down. At the same time, one can also keep on experimenting with loan parameters to reduce the EMIs for the loan.

EMI calculators are programmed to run on the following mathematical formula.

P x R x [(1 + R)N/((1 + R)N – 1]

The variables in the formula above entail different meanings. They are mentioned below.

• P stands for the principal amount or the amount the lender will offer to the borrower.
• R stands for the rate of interest the lender would charge for the principal.
• N stands for the tenure of the loan. Tenures are always calculated in months.

If one wants to check the EMI for a loan offline then one can use the above formula as well.

For more details, one should consult with the loan officer of their preferred lender.