If you are a planning to purchase a bike on loan, knowing the EMI (equated monthly instalments) amount in advance would help. The EMI consists of the principal and interest on the loan and will be a fixed amount every month. Bike finance EMI calculator is an online tool provide exact figures related to the loan amount. That would help you to plan your monthly payoffs comfortably and adjust the budget. Based on this knowledge, you can decide on the amount of loan that you should apply for, the repayment period, etc. Read on to know about this EMI calculator in details.
The benefits of a bike EMI calculator include:
Deciding on the loan amount
You can find out the EMI and estimate whether you would be able to pay the amount every month. If it seems difficult, you can adjust the values which you can easily pay beside maintaining your other expenses. It would also help you to decide on the amount of loan that you should borrow.
Planning your monthly budget
If you can calculate the EMI in advance, it would help in planning your monthly budget. You must be having other payments to make, keep a certain part as savings, etc. It would help in avoiding defaults on your bike loan EMI.
Avoid manual calculations
Manual calculations take a lot of time and there are chances that you would make mistakes. The two wheeler finance EMI calculator is an automatic tool for making difficult calculations, so you would always get exact numbers. It would also take the least amount of time for calculations.
Easy to use
The bike finance EMI calculator is easy to use and is a simple tool. You just have to put in the numerical values of principal, interest and duration of loan to get the EMI. There is no complex method involved.
Secured system of calculation
As the calculator does not require or store your identity, there is no chance of your personal details getting shared. So, it is safe to use.
Easy to access
You can use it anywhere at your convenience. Access it from any device like your smartphone, laptop, tablet or desktop with a stable internet connection. You do not have to login for calculating the EMI.
To get the EMI value, you require three inputs that you have to use in the calculator:
It is the actual loan amount that you are planning to borrow. You have to repay this back along with the interest within a specified time or the loan tenure.
Interest on loan
This is the interest amount that the lender would fix, based on your eligibility and repayment status. You must pay it during repayment.
This is the time period within which you have to pay back the loan amount along with interest in the form of EMI.
If you feel that the EMI amount is too high, you can reduce it by checking the following options:
Long repayment period
If you choose a longer period of loan repayment, the total amount would be spread over a longer time. This would bring down the EMI amount.
Lower interest rates
Compare between the interest rates that lenders are charging and choose the lender offering lowest interest rates. A low interest rate would reduce the total EMI.
Pay high down payment
It may be a bit hard for you to increase the down payment amount. If you can manage to pay a high amount initially, it would reduce your future EMIs.
With a bike finance EMI calculator, you are able to know the exact monthly payment over a fixed period for clearing off the loan amount, even before you apply. Knowing these details would reduce your risk of defaults and maintain a good credit score.