To purchase bikes or scooters, individuals inevitably lean towards bike loans as most of them are not capable of financing the purchase using their savings.
Since borrowers usually avail a substantial loan amount to purchase two-wheelers, the EMIs automatically are high. To ensure they do not miss their EMI payments, it is essential to use a bike loan EMI calculator. Navi has made such financial tools available to borrowers for free. It enables them to compute the EMIs within a few seconds!
For better financial planning, it is crucial for borrowers to know how much they have to pay each month to repay the loan. Having a proper idea of the exact amount they need to bear along with other financial liabilities, they can continue paying on time. This way, it gets easier to maintain a decent credit profile as well.
A two-wheeler EMI calculator enables you to compute your fixed monthly obligations for this high-value purchase you have made using the obtained loan amount. After having a detailed idea, you get to plan your repayment better.
This tool is available online for free, and you can find it on various financial websites.
The formula used for this EMI calculation is given below:
EMI = [P x R x (1+R)^N]/[(1+R)^(N-1)]
Here, P stands for the principal amount, R denotes the rate of interest, and N signifies the number of months you will have to bear the EMIs.
When you use the bike loan EMI calculator, it will require you to provide the aforementioned values. You can easily adjust or change the inputs to compare different combinations of the loan amount, tenor and interest rate. After entering such details, you will be able to see the exact amount you have to pay on a monthly basis as your bike loan EMI.
Here are some benefits you will get by using this financial tool:
Unsecured loans enable individuals to opt for substantial funds without having to pledge any asset as collateral against it. Navi offers personal loans of up to Rs. 20 lakh at attractive interest rates. To get immediate financial assistance for financing the purchase of your new bike, download the Navi app and apply for a personal loan.
You should also remember that assessing one’s repayment capacity is essential to manage the loan smoothly. A bike loan EMI calculator helps borrowers to plan everything out beforehand and avoid falling into a debt trap.
Now that you know how a two-wheeler loan calculator can be advantageous for you, you should know how to use it. Navi has made this financial tool available on both its website and app. Here are the steps you need to follow to use it:
Step 1: Visit the online portal of Navi first to compute your equated monthly instalment amount.
Step 2: Choose the Navi two-wheeler loan EMI calculator. Now, you have to enter all the necessary values, such as principal amount, repayment tenure, and interest rate. Note that Navi also lets borrowers choose their own EMIs depending on their budget.
Step 3: After entering these details, click on ‘Submit’ to get the exact EMI value.
You can compare different combinations of repayment tenure and loan amount to check what amount will be easy for you to bear each month. Based on that, you can come up with your own repayment strategy and manage other liabilities smoothly.
Before purchasing high-value products, it is essential to check whether you will be able to bear the additional costs it comes with. If you are planning on availing of a bike loan to finance such a purchase, you should be aware of its intricacies as well. In this regard, calculating your monthly obligations using a bike loan EMI calculator is not enough. Look out for the associated charges, eligibility parameters, document requirements, etc. as well.
Ans: Lenders usually charge a processing fee on bike loans. However, the exact fee percentage can vary from one lender to another. Keep in mind that processing fees are additional charges which you cannot compute using a bike loan calculator.
Ans: Lenders provide bike loans at varied rates depending on borrowers’ eligibility and other factors. You can find out the quoted interest rate by contacting your chosen financier. In some cases, you can also get this information from a lender’s official website.
Ans: The easiest way to lower your monthly instalment is to opt for a longer repayment tenure. Additionally, you can choose to borrow a limited amount and pay a portion of your bike’s cost from your pocket.
Ans: For any loans, foreclosure refers to paying off the dues before the tenure runs out. Borrowers need to pay a lump sum amount to clear their outstanding principal and foreclose a loan. Bike loan foreclosure can reduce your total interest cost on a loan.
Ans: Generally, you need a credit score of 750 or more to avail of unsecured loans. However, if you have a long-standing relationship with your chosen lender, they may allow you to avail a loan at high-interest rates.
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