Today, you can easily buy a bike by applying for a loan. Lenders such as banks and NBFCs have simplified the loan application process too. You can apply for the loan online, directly through their websites. If you are eligible, the lender sanctions the loan almost instantly. However, since a loan is just a fancy word for a debt, it is better to know how much it will cost you. There is one way in which you can find out the cost of the loan, even before sending your application to the lender – you can use a bike loan EMI calculator. Here are answers to some common questions about this electronic tool.
What is a two-wheeler loan EMI calculator?
A two-wheeler loan EMI calculator is an online tool that enables borrowers to instantly and accurately compute the EMI amount payable against a bike loan. It is an electronic tool that helps borrowers to understand the exact sum they would have to put aside each month towards the EMI payment of their bike loan.
How to calculate the EMI payable against the bike loan?
To calculate the EMI payable against your bike loan, you need to visit the website of your chosen lender and find the bike loan section. For instance, if you decide to avail a loan from Bajaj Finance, you need to Google ‘bike loan EMI calculator Bajaj Finance’. The internet search will pop up the Bajaj Finance page wherein you’ll find the calculator. Once you’ve located the calculator, you need to enter the principal amount you need, the interest rate you can afford and the tenure of the loan. The calculator will then compute the EMI amount payable in seconds. You must check the interest rates provided by the lender and input a value that is higher than it. Also, check the maximum loan eligibility amount and repayment tenures before entering the figures.
What happens if the EMI amount computed by the calculator does not fit into my budget?
In case the EMI of bike loan does not fit into your budget, you can clear the fields and use the calculator again. You can enter different permutations and combinations of interest rate and tenure into the calculator, and use it as many times as you like until you finally arrive at an EMI amount that fits your budget. If your credit scores are good, you may even be able to negotiate the interest rate when you approach the lender with your loan application.
Why should I use the EMI calculator? What are the advantages?
Using the bike loan EMI calculator before approaching a lender can work to your advantage. For one, the calculator computes the exact amount you’d have to pay as EMI when you take on the loan. It enables you to check whether or not you can afford the loan. Moreover, it helps you plan your monthly budget so that you can accommodate the EMI amount. Furthermore, using this calculator allows you to compare the interest rates levied by various lenders, thereby enabling you to choose the right lender for your loan.
What happens if you don’t use the EMI calculator before applying for the loan?
There are no severe consequences of not using the two-wheeler loan EMI calculator. However, if you apply for the loan without checking if you can afford the EMIs, there is a good chance that your loan will be rejected. Even if your loan request is accepted, you may find that you cannot afford it and may end up defaulting.
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