Buying a two-wheeler can get quite expensive depending on the model and the company. However, with several banks and financial institutions giving out two-wheeler loans, it is easy to take a loan to finance the purchase of your dream two-wheeler.
However, before taking a two wheeler loan, it is best to use a two-wheeler loan EMI calculator to find out the financial commitment. An EMI calculator tells you the monthly instalment amount for your loan of choice. A two-wheeler loan eligibility calculator will also show you the amount of loan you are eligible for. Most lenders do not finance the entire amount of the vehicle. The LTV or loan to value ratio for two-wheeler loans is generally around 70% to 80% of the value of the car. This means you will need to finance the remaining out of your savings. The two-wheeler loan eligibility calculator will calculate the EMI based on the amount of loan you are eligible for.
The two wheeler loan EMI calculator uses a formula to arrive at the EMI amount:
P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]
Where:
P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of the investment in years
Some two wheeler loan EMI calculators calculate the LTV and accordingly the EMI whereas others ask you to input the principal amount and calculate the EMI. However, remember that the bank or financial institution will not fund the entire loan amount. So, the adjust the principal amount accordingly.
How to use a two-wheeler loan EMI calculator?
1. The first step is to decide the company and the model of the two-wheeler you are looking to purchase. The price of the two-wheeler will depend on the company and the model. The EMI calculator will require the on road price of the model on which the LTV (loan to value) will be decided.
2. Input the details that the two-wheeler loan EMI calculator requires. Some of the information that these calculator needs are:
• Principal outstanding
• Rate of interest
• City of residence
• Date of birth
• Type of residence, i.e. rented or owned
• Name of company
• Model number
• On road price
• Type of employment
• Annual income
• Whether you have an account with the bank
• Any other information
3. Submit the information. The calculator will decide the principal amount and accordingly calculate the EMI. Depending on the EMI from different lenders, you can determine the lender who is giving you the best deal on your two-wheeler loan.
However, before taking a two wheeler loan, it is best to use a two-wheeler loan EMI calculator to find out the financial commitment. An EMI calculator tells you the monthly instalment amount for your loan of choice. A two-wheeler loan eligibility calculator will also show you the amount of loan you are eligible for. Most lenders do not finance the entire amount of the vehicle. The LTV or loan to value ratio for two-wheeler loans is generally around 70% to 80% of the value of the car. This means you will need to finance the remaining out of your savings. The two-wheeler loan eligibility calculator will calculate the EMI based on the amount of loan you are eligible for.
The two wheeler loan EMI calculator uses a formula to arrive at the EMI amount:
P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]
Where:
P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of the investment in years
Some two wheeler loan EMI calculators calculate the LTV and accordingly the EMI whereas others ask you to input the principal amount and calculate the EMI. However, remember that the bank or financial institution will not fund the entire loan amount. So, the adjust the principal amount accordingly.
How to use a two-wheeler loan EMI calculator?
1. The first step is to decide the company and the model of the two-wheeler you are looking to purchase. The price of the two-wheeler will depend on the company and the model. The EMI calculator will require the on road price of the model on which the LTV (loan to value) will be decided.
2. Input the details that the two-wheeler loan EMI calculator requires. Some of the information that these calculator needs are:
• Principal outstanding
• Rate of interest
• City of residence
• Date of birth
• Type of residence, i.e. rented or owned
• Name of company
• Model number
• On road price
• Type of employment
• Annual income
• Whether you have an account with the bank
• Any other information
3. Submit the information. The calculator will decide the principal amount and accordingly calculate the EMI. Depending on the EMI from different lenders, you can determine the lender who is giving you the best deal on your two-wheeler loan.
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