A bike is one of the most convenient modes of transport and a lot of people first buy a bike and then move on to buying a car. A bike loan is a convenient way to purchase a bike. There are many tools to find out the monthly liability on taking a car loan. Before you take a bike loan, it is better to check the monthly outgo through a bike loan EMI calculator online. These calculators usually have different inputs such as the loan amount, the bike model number, the manufacturer of the bike, the rate of interest. With the help of all of these, the bike loan calculator calculates the monthly outgo.
How to use bike loan Calculator?
Using a bike loan calculator is very simple. These calculators have been made very simple so that even a layman would understand how to operate them.
There are a few things you absolutely need to know before you use a bike loan EMI calculator:
● Cost of the bike (landed or ex -showroom)
● Rate of interest on the loan
● Tenure of repayment
Some other things that you should know are:
● Manufacturer of the bike
● Model number
Not all calculators ask for the manufacturer and model number. Most of them calculate the bike loan EMI in with the loan amount, interest rate, and repayment period.
Once you know these, you can input them in the bike loan calculator and it will show the EMI amount. The calculator does not show the formula for calculating the EMI. It simply calculates the EMI and makes it simple for the user. It is easy to change the loan, interest, and tenure and see the impact on the EMI. It is to be noted that for smaller repayment period, the EMI will be higher, but the interest component will be lower since more amount of the EMI will go towards repayment of principal.
Some bike loan EMI calculators also show the amortization schedule, which shows either the monthly or yearly bifurcation into interest and principal. This helps to know the amounts paid as interest and the changes in this depending on the change in interest rate or repayment period.
A bike loan calculator can also be used in case you already have a bike loan and are thinking of pre-paying. If the loan calculator provides an amortization schedule, you can know the amount you will need to pre-pay and the added EMI in case the repayment tenure is changed.
How to use bike loan Calculator?
Using a bike loan calculator is very simple. These calculators have been made very simple so that even a layman would understand how to operate them.
There are a few things you absolutely need to know before you use a bike loan EMI calculator:
● Cost of the bike (landed or ex -showroom)
● Rate of interest on the loan
● Tenure of repayment
Some other things that you should know are:
● Manufacturer of the bike
● Model number
Not all calculators ask for the manufacturer and model number. Most of them calculate the bike loan EMI in with the loan amount, interest rate, and repayment period.
Once you know these, you can input them in the bike loan calculator and it will show the EMI amount. The calculator does not show the formula for calculating the EMI. It simply calculates the EMI and makes it simple for the user. It is easy to change the loan, interest, and tenure and see the impact on the EMI. It is to be noted that for smaller repayment period, the EMI will be higher, but the interest component will be lower since more amount of the EMI will go towards repayment of principal.
Some bike loan EMI calculators also show the amortization schedule, which shows either the monthly or yearly bifurcation into interest and principal. This helps to know the amounts paid as interest and the changes in this depending on the change in interest rate or repayment period.
A bike loan calculator can also be used in case you already have a bike loan and are thinking of pre-paying. If the loan calculator provides an amortization schedule, you can know the amount you will need to pre-pay and the added EMI in case the repayment tenure is changed.
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