Bike Loans are an excellent facility offered by banks. It helps you buy a motorcycle that you may be unable to afford in a lump-sum payment. You must pay interest rates on the principal amount and repay them over flexible EMIs. When applying for the Loan, use the Bike Loan EMI calculator. Here are some significant facts about the instrument that you must know.

Different Loan calculators

There are various Two-Wheeler Loan EMI calculators that potential borrowers can use to check monthly instalments and the overall loan cost. So, if you want to buy the bike on Loan, use the calculator. You could download an EMI calculator app on your smartphone. However, the preferred place for calculating EMIs is the bank’s portal. Using multiple calculators helps to cross-verify if the estimated amount is accurate.

Helps create a budget

Whenever you take out a Loan, you need to revisit your budget. Check if you can afford the EMIs, and how much of your monthly income you can contribute towards the EMI. You also need to readjust your budget, like cut down on a few expenses and so forth. You can achieve this only if you are aware of the exact EMI amount. The calculator not only helps understand the amount but also assists in creating a financial plan.

Free of costs and unlimited usage

These instruments are available free of cost. You can use them as many times as you like without worrying about charges or exceeding your usage, so you can arrive at an EMI amount you can afford. For instance, you can reset the EMI and Two-Wheeler Loan interest rate as many times as you want.

Accuracy

The most compelling reason to use the calculator is that its results are accurate to the last decimal place. You can immediately find out the exact EMI amount you need to pay against the loan. There is no scope for errors in calculations since the tool is electronic. So, you can rest assured about the EMI amount for the Loan and then apply for it.

Manual or electronic calculations

Besides the availability of an electronic calculator, you can use a simple formula to calculate the EMI amount. The formula is:

P*R*(1+R)^N/[(1+R)^N-1]

Where,

P = principal amount

R = interest rates

N = tenure

The Bike Loan EMI calculator also uses the same formula. Hence, there is no need to calculate EMIs manually.