So now that you have decided to take a loan for your bike, the next thing you must know is how much monthly instalment you need to pay in order to pay off your loan. If you have been worrying all this while about your financial planning, don’t worry anymore. Lenders offer an extremely useful tool- the Bike Loan EMI Calculator to help to easily calculate your EMI. But, first of all, let’s have a look at what are the factors which affect the value of EMI –
- Principal amount- It is the total amount you wish to borrow for your two-wheeler loan.
- Rate Of Interest – it is the interest rate charged on the principal amount you have decided to borrow.
- Tenure/ Duration – it is the time frame you and your lender have agreed upon for your loan repayment.
These three factors determine the value of EMI for your loan. You can calculate the EMI Offline via a formula or an Online EMI calculator. We have listed both options to calculate the EMI easily.
Now, Let’s learn how to calculate Bike Loan EMI –
Mathematical Formula
EMI = P × r × (1 + r)n/((1 + r)n – 1)
P = the principal amount
R = the rate of interest
N = tenure(in months)
Using this formula, one can calculate the EMI.
Calculate Bike Loan EMI Online –
But don’t get perplexed by this complicated formula, most lenders have an online Bike Loan EMI Calculator which will help you calculate EMI in the blink of an eye. You just need to know the above mentioned three factors and once you input these values in the calculator, you will get the results.
Keep in mind the following things while using our online calculator –
- In loan amount/principal amount, enter the total amount you wish to borrow.
- Fill in the interest rate offered by the bank in the interest rate section.
- In the tenure, fill in the time frame you need to repay your loan (in months).
A Two wheeler loan from Bajaj Auto Finance can help you fulfil the dream of owning a bike. With popular models like Pulsar, Avenger, Platina, Dominar and KTM bikes, you can make a great style statement without having to worry about finances.
One important thing to know is that the value of your monthly instalments are directly proportional to the rate of interest and the principal amount whereas, it is inversely proportional to the tenure of your loan. The more the principal amount and the interest rate, the higher is the EMI and the more the tenure, the lesser is the EMI value. So, the monthly instalment of your bike loan will decrease as the duration of your loan (tenure in months) increases.
Use the Bike Loan EMI Calculator on our website so that you have a fair idea of how much amount you will have to pay monthly in order to repay your total loan amount.
After the calculation of EMI, you get an idea about the payable amount. Also, prepare your required documents for a bike loan. Here we have listed some required documents for loan-
Salaried Person:
·ID Proof: Passport /Photo credit Card/Pan Card /Driver’s License /Voter’s ID/Aadhaar Card/ Identity card with applicant’s photograph issued by Central/ State Government Departments, PSU.
·Two recent passport size photographs
·Address Proof: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. / Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
· Last 3 month’s salary slips/ Form 16/Latest ITR
· Last 3 month’s bank statement is mandatory
Self Employed:
·ID Proof: Passport /Pan Card/Driver’s License/Voter’s ID/Aadhaar Card
· Password Size Two recent passport photographs
· Proof of Address: Passport/Driver’s License /Voter’s ID/Utility Bill/Aadhaar card/Bank account or Post Office savings bank account statement. It should be computerized documents issued by PSU, Pvt Sector or MNC Banks only. (All banks except corporation bank)/ Property or Municipal Tax receipt; Address proof in the name of the applicant’s spouse or parents name is acceptable
· Latest Income Tax Return (ITR)
· Last 3 month’s bank statement is mandatory
Keep your documents ready for the further process, also maintain a good CIBIL score to get instant approval on loan.
