A 2 wheeler loan is an excellent way to fund a new bike purchase. Many things should be considered before applying for such a loan. The most critical aspect of applying for a loan is being able to repay the loan amount.
Suppose one takes a massive loan to purchase the latest two-wheeler and later realises they have insufficient funds to repay the loan. In that case, it hampers their credibility and adversely impacts their credit score.
And a low credit score causes difficulty in seeking loans or credit in the future. Applicants should assess their income and expenses carefully to understand their repaying capability to apply for a two-wheeler loan.
What is a Two-Wheeler Loan Interest Rate Calculator?
Applicants can understand the monthly instalments they would be obliged to pay upon taking the loan with the help of a two wheeler loan interest rate calculator. The calculator helps showcase a realistic picture of future debt obligations so that applicants can apply for a suitable loan amount, compare interest rates and choose the right repayment tenure.
Here is how the two-wheeler loan interest rate calculator works.
Step 1: The applicants should begin by selecting their desired loan amount
Step 2: Choose the applicable rate of interest
Step 3: Select the repayment tenure
The calculator generates the following results:
- Monthly instalments that the applicant needs to pay
- Total loan amount
- Total amount payable by the applicant
The two wheeler loan EMI calculator is a free tool that helps applicants compare and assess various options before finalising a two-wheeler loan.
How is the Two-Wheeler Loan Interest Rate Calculator Helpful?
The key advantages of using a two wheeler loan interest rate calculator are:
- Accurate Results – The two-wheeler interest rate calculator helps project the value of future Equated Monthly Instalments (EMIs). Applicants can use the calculator to assess if the EMIs are too high and may create trouble in repayments. In such cases, the applicants may look for a lower loan amount, better interest rates or a more extended repayment tenure. Conversely, if the EMIs are pocket friendly, the applicant can look to narrow down the loan tenure and finish off the debt sooner.
- Quick Comparison – Applicants usually shop multiple lenders to assess the best-suited offers before finalising a loan. The calculator helps them assess the best offer to make efficient decisions.
- Exact Estimation of Costs – The two-wheeler loan interest rate calculator can help applicants understand the cost breakdown associated with the loan, such as processing fee or interest rate. The calculator gives a more transparent estimate of these costs and helps uncover additional charges that may come with the loan. Applicants can bargain on the processing fee and interest rate and reduce additional costs that may have been tagged along with the loan.
How to Use The Two-Wheeler Loan Interest Rate Calculator?
Using the interest rate calculator for your two wheeler loan is simple and requires following these steps.
- Applicants must begin by estimating their future expenses. If loan applicants are planning to purchase a bike on EMI, the first step is to understand how much they can afford to pay as instalments each month without straining their finances.
- The second step involves the calculation of the Loan-to-Value ratio. Applicants need to understand the loan amount and EMI best suited to their income.
- Now click on the calculator and fill out the required details, such as the loan amount, interest rate and loan tenure.
- Finally, tweak the loan amount, tenure and interest rate values to arrive at the most suitable EMI.
A two wheeler loan interest rate calculator is essential for estimating future EMI costs. The calculator is free of cost and simple to use. Loan applicants must utilise this tool for various purposes, such as
(i) to understand the cost of their loan
(ii) to compare across lenders and offers
(iii) to estimate additional costs and bargain accordingly
(iv) to select a suitable repayment tenure
The calculator helps loan applicants gain a deeper insight into the components of the loan and make well-informed, efficient decisions.