How Are EMIs For a Two-Wheeler Loan Calculated?
It is not new that Indians have a pure love for motorcycles. To put things in perspective, India has witnessed record-breaking motorcycle sales over the previous few months.
This tendency was fueled by a number of factors. One of them is the continuous rise in the cost of fuel and other necessary fuels. Rising bike sales are also being driven by unchecked inflation. Even the wealthy are put off buying a vehicle because a bike has low maintenance costs.
Indian bike manufacturers keep a close eye on the market. The bike manufacturers made sure they didn’t lose out on any sales. This is the cause why Indian motorcycle manufacturers began raising the pricing of the motorcycles they sell here. Although it levels . In general, the price growth is ongoing. Due to this, even entry-level commuter bikes are now more pricey than INR 1 lakh! Thus, the notion of paying cash for motorcycles looks to be a thing of the past. One’s sole option is to apply for a vehicle loan to be able to ride their favorite bike.
The growing demand for two wheeler vehicle loans is being driven by factors other than bikes’ high MSRPs. The main one is the variety of advantages one can take advantage of when they decide to finance their bicycle.
The Sections Below Outline Some of the Advantages Stated Above:
It’s simple to apply for a loan to buy a bike. The simplicity of applying for a loan online is currently provided by all lenders. Even relevant documents can be uploaded online. The loan application is accepted in one day, which would be the finest part. The advantages of financing a bike at the dealership is another advantage. Most bike manufacturers have close links to notable lenders. By doing this, those looking to purchase a bike can avoid applying for a loan before going to the local bike shop.
- These days, there are motorcycle loans accessible with customizable debt repayment plans.
- Additionally, motorcycle loans are available with technical words, such as the ability to alter the EMIs for the loan.
- The benefit of cheap interest rates is another perk, provided the client satisfies the lender’s minimal qualifying requirements.
- Additionally, bike loans can help people improve their credit history and score. One would be able to obtain finance more easily in the future if they could have a clean credit history and a high credit score.
Undoubtedly, a motorcycle loan must be repaid.
Therefore, how can lenders or even borrowers calculate the EMIs for the debt?
Well, a bike loan EMI calculator would be used by both the loan officer and the borrower. A free online tool is an EMI calculator. The official websites of banks and non-banking financial institutions are set up with these tools. These tools are currently available on the websites of major car portals.
A standard EMI calculator is configured to calculate the expected EMI of a vehicle loan right away. The fundamental mathematical formula mentioned below is the one that all EMI calculators have been programmed to use.
P x R x [(1 + R)N/((1 + R)N – 1].
The variables in the mathematical formula above have explanations. The following lists the definitions of the variables.
P represents the principal sum. The sum in question is the one that the borrower borrowed.
R is the interest rate that the lender is levying on the principal sum.
N is the number of months that the debtor has to start repaying the borrower’s debt.
It should be noted that the material presented here is not professional advice. The reader is recommended to speak with a qualified financial counselor for more specific guidance.