EMI-based financing has simplified bike ownership for all purchase aspiration segments of the economy. Not only does it enable financing for first-time bike purchase but also provides financing for upgradation to a newer, better bike model. Further, the availability of traditional and zero down payment bike financing helps the aspiring borrower choose a suitable loan option to finance their bike with. To further make borrowing simple, lenders also provide a dedicated financial tool called EMI calculator for bike loan.
This calculator enables computations of various types to equip the borrower with the necessary information that helps make an informed and affordable borrowing decision. When planning to finance your bike purchase with a two wheeler loan, it can be useful to know how an EMI calculator can help with your borrowing decision. Let’s get into the details regarding what an EMI calculator for two wheeler loan comprises. Also, we will touch a bit on how you can use it to make the most of its available features.
What is a Bike Loan EMI Calculator?
A self-help financial tool designed to help users assess their borrowing decisions, an EMI calculator for bike loan is a great introduction to the financial scape. It helps the aspiring borrower to assess how much they should borrow so as to accommodate the EMIs easily into their monthly income.
The calculating tool computes closely accurate results and is quick to bring the results. It is also easy to use with its simplified interface and can be useful to all borrowers, irrespective of their demography. The financial tool is mostly available for free on lender websites and can be used by customers as well as site visitors for their borrowing assessment requirements.
How Can You Make the Most of an EMI Calculator for Bike Loan?
Use it to assess how much you should borrow
Once you have made all the entries to an EMI calculator for bike loan, the results obtained can be used to assess if the borrowing amount you selected is suitable or not. Accordingly, you can increase or decrease the loan value to keep it payable as well as accommodative in your income.
Note that you need to make a certain down payment as well to avail the loan, So, in case you are purchasing Hero Glamour, the loan amount will be the price of the market bike model minus the Glamour down payment payable subject to your eligibility.
Check how your tenure decision impacts your repayment liability
You can also use the computed results to check if the tenure selected is suitable or not. Make changes to the tenure value to tweak the EMIs and interest payable, and decide on a suitable repayment term accordingly.
Go through the principal plus interest break-off of the amortization schedule
The calculator’s amortization schedule offers a detailed understanding of how each loan EMI is chargeable of the total principal and interest component. Based on these break-offs and the loan outstanding after each year of tenure completion, you can decide on whether to choose a prepayment option, like foreclosure or part-prepayment, or not.
Along with an EMI calculator for bike loan, reputed financial institutions also provide other useful financial tools like eligibility and foreclosure calculator. These computational tools combine to make borrowing as well as managing the loan an easy financial path to walk on. Also, if you have borrowed the loan at floating rates, you must, from time to time, keep a check on interest rate changes in the market. A significant reduction in the rates should prompt you to go for bike loan refinancing as it can help save remarkably on the total cost of your loan. In that case, a balance transfer calculator is another financial tool that should be put to use.