Scootering or cycling keeps it simple and classy. Two-wheeler provides one the freedom and independence of daily travel, for a weekend tour, or for shopping excursions. Purchasing a new two-wheeler, however, involves paying an outlandish sum of down payment, which maybe one cannot afford at all points in time. The majority, fortunately, choose to take a loan against the available funds.
Two wheeler loan gives you the convenience of buying your favorite bike and paying later. For your convenience, two wheeler loan EMI calculator and bike loan interest rate details inform you whenever necessary to enable you to make smart buying decisions.
What is a Two Wheeler Loan?
A two wheeler loan is a loan scheme in which the individual buys a scooter or a bike without paying the entire cash. Rather, money is paid partially in installments that have to be repaid in months or years. It is simple to spend money on the car and save small money for spending on something else. The loan is pre-computed on the cost of the two-wheeler and repaid by way of equal monthly installments referred to as EMIs or Equated Monthly Installments.
This two wheeler loan will be suitable for working professionals, students, and others who otherwise would agree to introduce a two-wheeler into their life. These are utilized by urban working class and rural masses in which the two-wheeler is a quick mode of transport. Two wheeler loans will allow you to own the vehicle on a sooner date even when you do not agree to introduce the entire price at one go.
Understand EMIs
EMI means Equated Monthly Installment. EMI is the monthly instalment that you repay as a loan. Both parts go into one EMI: part of the original loan and a small amount of interest on the loan value. Whatever you're repaying as an EMI will depend on when you're repaying, interest rate, and how much of a loan it was.
EMI payment relaxes you in your pocket and not in the hassel of paying an amount at a time. You would prefer to choose an EMI according to your pocket so that you repay the loan according to the time table without even having a thought about anything.
What is a Two Wheeler Loan EMI Calculator?
Two wheeler EMI loan calculator is a basic calculator that tells you how much you would pay per month if you take a loan with you. It is calculated on basic inputs such as loan amount, loan repayment tenure, and interest rate. If you enter the above values, the calculator tells you about the exact EMI amount you would have to pay.
It is simple to use and available in most sites. You do not need to have technical knowledge to utilize it. Within two clicks, you get to know how much you will pay per month and whether a given plan of the loan will be workable or not for you. It saves you future shocks and provides you with a clear view of how your future will look.
How to Utilize Two Wheeler Loan EMI Calculator
It is as simple as possible to compute EMI with the help of a two wheeler loan EMI calculator. You just need to provide three very significant inputs: loan amount which you want to avail, loan tenure or repayment duration and loan interest rate for the bike. As soon as you input these details, the calculator computes your monthly EMI.
You can try out all the different combinations and see what will decrease your EMI if you alter the tenor or the monthly payment. If you pay in advance, i.e., then your EMI would be more but you would be making a prepayment against the loan. If you pay after some time lapse, i.e., then your EMI would be less, but you'll be paying higher interest in the long run.
Significance of Interest Rate Percentage in Bike Loan
The most positive aspect of a loan is the interest rate percentage in a bike loan. It is the rate at which they are going to charge you on the loan with interest. The lower your percentage, the less amount you would have to pay, and the higher your percentage, the greater amount is going to be charged on the loan.
Interest rates will vary with the lender, your credit record, and repayment duration. Compare and contrast different interest rates before you finalize one. A small variation in the interest rate will save you a considerable amount in the long run.
How Interest Rate Affects Your EMI
Your two wheeler loan interest is the same as your EMI balance. The more interest you have, the more EMI and the less interest, the less EMI you will have. So you need to keep in your hand a two wheeler loan EMI calculator—it will show you precisely how much you will be paying monthly and what would be to you the cost of borrowed money.
For example, if two people have taken a loan of same amount for the same period but with higher rate of interest, then they will be paying higher EMIs. It is because of this reason that it is easy for one to take wise decisions and not take loans which prove costly in the long run.
Benefits of using an EMI Calculator
Two wheeler EMI calculator gives you the convenient and simple way of financing your purchase. Instead of an estimate or a wait for calculation, you simply put in your loan inputs and see your EMI. It makes you the master of your own fate, as well as gets you committed to the buy.
The calculator is also useful as you move ahead to purchase loans. You never know how much to borrow as a loan if you were thinking of payment amount versus payment terms or variable interest rates. It thus makes the choice optimum with a great trade-off of low cost and low monthly.
Responsible Planning for Loans
Receiving loan money as a loan is not a very grave task. Be careful to see that the money would be decently comfortable for you to roll over the EMIs on a repeating schedule. In most cases, the money can be managed most conveniently by making an advance plan with the assistance of a two wheeler loan EMI calculator. Once you got your EMI ready, then you would be able to prepare all your other expenditures and ensure that you would be having adequate money so that you would be able to repay your loan.
Also take into consideration how much you pay back the loan. The longer tenure is easy because you pay less EMI but more interest. Lowering tenure saves interest but would be more in monthly payments. The calculator keeps your hand game balance.
Securing a Better Loan Deal
If you are seeking a two wheeler loan, it will be easy to obtain a good rate of interest. Timely payment record, steady income, and planning will make it easy for you to get a good deal without any trouble. If you are seeking a loan, comparing loan schemes of loans and bike loan interest from other sources will be necessary.
You may even reduce the overall loan amount by giving some extra money as down payment. I mean, you are giving small money and small interest. Down payment in small amounts reduces your EMI too, and the loan will be trouble-free. Small-small things like that make loan easy for you and will even save your money in long run.
Final Thoughts
It is always a wise decision to buy a two-wheeler, and with the finance facility, you can make it even easier. Even if you are buying for the first time or if you are trading an old bike with one new enhanced bike, a financial management on the right note can enable you to buy your favorite bike without draining your account. Calculators such as the two wheeler loan EMI calculator assist you by providing you with an exact figure of your approximate month's payment and assisting you in managing your finances once again.
You need to manage your two wheeler loan rate of interest. Not only does it affect your EMI, but also your repayment. Using the EMI calculator and rate of interest, you can make a logical choice and own your two wheeler without any problem.
Plan first is the motto of savvy buying. Good tools and good research, your two wheeler dream can be a stress-free, hassle-free and budget-friendly drive.