Are you are planning to purchase a bike on loan? Before you start the loan application process, it would be useful if you know the EMI (equated monthly instalments) amount that you have to pay. EMI consists of the principal and interest on a loan and it is a fixed amount every month. The bike EMI calculator is an online tool that you would find on the lender’s website. It would help you to plan your monthly budget comfortably and pay the EMIs as well. Based on the EMI value, you can decide on the amount of loan amount that you should apply for, and the repayment period.
Know about the EMI calculator in detail and the benefits that it can provide in the entire loan selection process:
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Helps you decide on the loan amount
With this simple tool, you can find out online, about the EMI amount and whether it would be possible for you to pay a specific amount of EMI every month. If you think that it would be difficult for you, then adjust the values to get an amount that you can pay easily. All the while, you have to maintain your other fixed expenses as well, for example, different bills, children’s education fees, etc. In the process, you would also be able to decide on the amount of loan that you should borrow.
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Plan your monthly budget by making some changes
Suppose you know the EMI in advance before you apply for the loan. It would have a role in planning your monthly budget. You can adjust certain expenses, carry on with the fixed expenses, and put some amount in your savings account as well. The time that you would get to make the required adjustments would help and you would not feel an additional burden putting you under financial stress. This way you would be able to avoid the defaults on the EMIs of your bike loan.
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Helps to avoid manual calculations
When you purchase a bike on EMI, you would see that the manual calculations would require a lot of time and there would also be chances that you would make mistakes. The EMI calculator is an automatic tool, so you would always get exact numbers even for making difficult calculations. It would also take the minimum amount of time for calculations.
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It is easy to use
The bike EMI calculator is easy to use as it is a simple tool. You only have to put in the numerical values like principal, interest, and the duration of the loan repayment period to get the EMI. There is no complex method involved in the process.
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A secured system of calculation
The calculator does not require you to log in, create an account or store your identity. So, there is no chance of your personal data getting shared. It is completely safe to use.
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The calculator is easy to access
You can use it from any remote location and during a suitable time. You can access it from any device like your smartphone, laptop, tablet, or desktop that has a stable internet connection.
To get the EMI value, you just require to key in three inputs that you have to use in the calculator:
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Loan amount
It is the actual amount of loan that you are planning to apply for. Remember that you have to repay this back along with the interest within a specified time or the loan term.
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The interest on the loan
It is the interest amount that the lender would fix, based on your eligibility and the repayment term that you have chosen. You must pay it during repayment and on time.
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Loan tenure
This is the time within which you have to pay back the entire loan amount along with the interest in the form of EMI.
If you feel that the EMI amount is very high and would be difficult for you to bear, you can reduce it by changing the following options:
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Long period of repayment
If you choose a longer period of loan repayment, the total amount would be spread over a longer time. This would bring down the EMI amount to some extent.
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Lower interest rates
Compare the interest rates that lenders are charging and go for the lender who offers the lowest interest rate. The low rate would reduce the total EMI.
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Pay a high down payment
It may be hard for you to increase the down payment amount. If you can manage to pay a high amount initially, it would reduce the EMI amounts.
With the help of a bike EMI calculator, you would know the exact monthly payment over a fixed period for clearing off the loan amount. And all these even before you apply. These may reduce your risk of defaults and help in maintaining a high credit score.
