EMI & Interest rates for 2-wheeler loan – How to calculate?

If you are planning to purchase a 2-wheeler, you would need to consider the cost involved. While some 2-wheelers may fall within your budget, others may require financing. 

To make the process of financing your 2-wheeler easy, lenders offer 2-wheeler loans that allow you to repay the cost over a period in EMIs. The EMI or Equated Monthly Installment is the amount that you pay every month to repay the loan amount along with the interest. 

In this article, we will explore the tools and tips to help you calculate your 2-wheeler loan EMI and interest rates and ensure that you choose the best loan for your needs.

Calculating 2-Wheeler Loan EMI

EMI calculation is crucial because it helps you understand the loan amount that you can afford to pay every month. There are several factors that determine the EMI amount such as loan amount, loan tenure and the interest rate. To calculate the EMI, you can use online tools that make the process easy and hassle-free. Let’s look at some: 

Online EMI calculators 

One of the most straightforward and reliable ways to calculate your two-wheeler loan EMI is by using an online EMI calculator. Several banks, financial institutions, and loan aggregator websites offer EMI calculators on their websites. 

All you need to do is enter the loan amount, interest rate, and loan tenure, and the calculator will give you the monthly EMI. Most online EMI calculators are user-friendly and provide instant results. You can also play around with the numbers to understand how the EMI changes when you vary the loan tenure or interest rate. 

Some EMI calculators also provide a detailed amortization schedule, which helps you understand the loan repayment schedule. To use these EMI calculators, all you need is an internet connection and a few minutes to spare. Make sure you enter accurate information to get precise results. 

Mobile Apps 

In addition to online calculators, several mobile apps can help you calculate your two-wheeler loan EMI. Most of these apps are available for free on iOS and Android platforms, and they offer a user-friendly interface to help you calculate the EMI. Some popular mobile apps for calculating two-wheeler loan EMI include Loan EMI Calculator, BankBazaar, and EMI Calculator. 

One such tool is the Bajaj Finserv Two-Wheeler Loan EMI Calculator. All you need to do is provide your loan amount, interest rate and loan tenure, and the calculator will instantly give you a breakdown of the EMI amount, interest amount, and the total amount payable.

For instance, if you are planning to purchase a 2-wheeler worth ₹75,000 and plan to pay the loan back in 3 years or 36 months, with an interest rate of 11%, the EMI for the loan would be ₹2,466. The interest charge for the loan would be ₹16,776, and the overall payout for the loan would be ₹91,776. This easy-to-use tool makes it easy to plan and budget for your 2-wheeler loan.

Excel sheet templates 

If you're looking for a more customizable option, you can use Excel sheet templates to calculate your two-wheeler loan EMI. Several templates are available online, and you can download them for free or at a nominal cost. Excel templates offer the flexibility to customize the inputs, such as interest rate and loan tenure. You can also modify the formulas used in the template to suit your requirements. 

Additionally, an Excel sheet allows you to see the calculations and formulas used to arrive at the EMI, making it a great learning tool. However, using Excel sheet templates requires some level of proficiency in using Excel. 

If you're not familiar with the software, it may take some time to understand the formulas and customizations. 

Factors Affecting 2-Wheeler Loan Interest Rates

When looking for 2-wheeler financing, the interest rate forms a significant aspect of the decision-making process. Knowing the factors that determine the interest rates can help you make the right choice.

1. Credit Score: Your credit score is an essential factor that affects the interest rate that you may be charged. Lenders prefer to offer loans to individuals with a high credit score, as it indicates their likelihood to repay the loan on time.

2. Loan Amount and Tenure: When applying for a 2-wheeler loan, the loan amount and tenure play a significant role in the interest rate. Typically, a higher loan amount and an extended tenure may result in higher interest rates.

3. Type of 2-Wheeler: The price and make of the two-wheeler also affect the interest rate charged. Higher-end two-wheelers may attract a higher interest rate compared to lower-end ones.

4. Income: Another factor that determines the interest rate is your income. Higher-income groups are more likely to be charged a lower interest rate on their loan.

Choosing the Right 2-wheeler Loan

When looking for a 2-wheeler loan, it is crucial to use online tools such as loan eligibility calculators and EMI calculators to help you navigate the decision-making process. Aside from this, look for lenders that offer affordable interest rates, flexible repayment tenures, and prompt customer service.

One such lender is Bajaj Finserv, which offers quick and affordable 2-wheeler loans with zero prepayment charges. The loans come with a host of benefits such as an EMI network card, loan payment protection, and a doorstep service.

To apply for a 2-wheeler loan with Bajaj Finserv, it is easy to download the app, where you can create an account and apply for a 2-wheeler loan in a few simple steps. Committed to offering transparent and beneficial services, the app allows you to get a loan of up to ₹1.5 lakhs, with doorstep service, quick disbursal, and the ability to track your loan in real time.

In Conclusion

When considering a 2-wheeler loan, it is essential to understand the EMI and interest rate calculations. Using online tools, you can understand the EMI breakdown and loan affordability to make informed decisions related to your finances. Additionally, it is crucial to work with a reliable lender that offers affordable rates and excellent customer service. Choosing an app like Bajaj Finserv can help you apply for a loan within minutes, with hassle-free documentation, and flexible repayment.