As the popularity of two wheeler loans has increased, so has the need to be well aware of the offers extended by lending institutions so one selects the most reasonable funding option. Today, there are a number of lending institutions that provide bike loans with varying features, benefits, interest rates and other terms of borrowing. This makes it all the more essential to be prudent with your financing choice. One of the best ways to do so is to check your bike loan affordability and choose a loan amount and associated tenure accordingly.
Reputed lending institutions have thus also introduced dedicated financial tools like two wheeler EMI calculator. These tools allow one to assess his/her borrowing decision from various perspectives to make the right choice. If you are planning to avail a bike loan in the near future and are not sure on the loan amount and instalments payable to select, the calculator shall assist you well. Below is a detailed insight on how you can use the calculator along with the benefits that it brings to help with crucial decision making.
How to Use a Two Wheeler EMI Calculator?
A two wheeler EMI calculator comes with an intuitive interface that requires only a handful of entries for you to arrive at the result. Many reputed lenders host these calculators for free on their official websites; so, getting access to one should not be a problem. Now, let’s proceed to the calculation process.
Step 1: Visit the website of your selected lender and navigate to the bike loan EMI calculator hosted on the site.
Step 2: Next, enter the essential details required in the calculator. Which mostly include the loan amount, the tenure for repayment and the interest rate applicable on the loan.
Final Step 3: Once you have made the necessary entries. The loan calculator will immediately reflect the results which primarily include the following.
- The EMIs payable for the entire loan tenure
- The total loan liability payable
- The interest accrued and payable on the loan
While using the calculator to find the EMIs easy. You must be wary of the fact that different values entered reflect on the EMIs differently while also impacting your total loan affordability. Below is a look at how you can make the right borrowing decision based on the following impacts.
- The loan EMI is directly proportional to the EMIs and the total interest payable. Thus, an increase in the loan amount selected increases both the EMIs payable and the total interest on your loan.
- Tenure entered in the EMI calculator has an inverse relation with the EMIs while it is directly related to the interest accrued. Thus, if you choose a long tenure, it sure reduces the EMIs payable, thus bringing down the EMIs payable. However, it increases the interest payable, thus resulting in a higher overall loan liability.
Hence, when making a borrowing decision related to your two wheeler loan. You must consider the impact of these changes on your total loan liability before making the final borrowing decision. Some of the top benefits of a two wheeler loan calculator include quick assessment. Accuracy of calculation and the likes, which make it crucial to use the tool before applying for the advance.