Two-wheeler loan: How to use EMI calculator?

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.

How to use an EMI calculator?

An EMI calculator is an excellent tool to help find out the monthly instalment amount and the total interest paid on loan. There are EMI calculators for different types of loans:

• Car loans
• Credit card loans
• Personal loans
• Home loans
• Two-wheeler loans

EMI or equated monthly instalment is a sum that comprises of both interest payment for outstanding principal and principal repayment. The EMI amount remains the same for the entire loan duration unless the borrower opts for schemes that restructure the EMI amount based on the tenure.

The easiest way to find out the EMI for your loan is to use a loan EMI calculator. A loan EMI calculator will help you find out the monthly instalment amount and help you plan your budget. Most calculators allow you to adjust all the variables, which enables you to arrive at the EMI amount for different combinations of principal, interest, and loan tenure.

An EMI calculator requires three inputs:

• Principal amount
• Rate of interest
• Loan repayment tenure

For some types of loans such as two-wheeler loans or car loans that are dependent on the value of the item purchased, the EMI calculator also requires additional details, for example, the brand or model of the car/two-wheeler, the cost etc. In such calculators, the principal

The 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 loan in years

How to use an EMI calculator:

1. Input the three details: principal amount, the rate of interest, loan repayment tenure
2. If you're applying for consumer durable loan or a vehicle purchase loan, input details such as the company and the model number along with the showroom cost of the product.
3. Press calculate
4. The EMI calculator will give you the monthly EMI. Some calculators also provide a breakup of the EMI into principal repayment and interest payment. This helps you calculate the total interest paid throughout the loan tenure.

For some types of loans, there is a loan eligibility calculator. This calculates your eligibility based on your loan requirements as well as your income. Based on your eligibility, the calculator fixes a principal and calculates the EMI. Using such calculators helps you find out the amount of loan you can avail as well as the fixed monthly commitment. Planning better for your loan can help you get the right loan from the right lender.

Mobile banking: 5 reasons to use your phone for banking

With the advent of digital banking, one trend that has caught on is the use of mobile phones for banking. Each bank now has their mobile banking application which provides all the facilities that are available on Net Banking. This has enabled people to bank on their mobile phones at any time of the day without even needing to resort to net banking or visiting their branch.

 Indian mobile banking includes a whole range of services:

• Checking account balance
• Paying utility and other bills
• Transferring funds using NEFT, UPI, IMPS, RTGS
• Opening a fixed deposit
• Checking fixed deposit balance
• Reviewing historical statements, etc.

These mobile banking services form the bulk of the facilities that people usually want to get done with

Here are 5 reasons to use your phone for banking:

1. Convenience:
The first and foremost reason for using mobile banking services is the convenience. There is no need to visit the bank branch for updating your passbook when you can access your account statement in a matter of a few clicks. With mobile banking, there is no need to even log in to your net banking portal. Most of the services available on net banking are also available on mobile banking. This makes it highly convenient.

2. One-click payments:
Whether it is utility bill payments, credit card payments, or third-party transfers, the whole process can be done in a matter of a few clicks. This has highly simplified banking. There is no need to depend on bank hours since these transfers can be done in real time by using IMPS or the bank's UPI app.

3. Secure banking:
Most banks have security procedures in place for mobile banking. This ensures using the app is safe. To use the app, the customer needs to login using either an ID or the customer care number and the password. Each transaction is verified before being executed. These built-in safeguards improve the security of mobile banking.

4. Offers and discounts:
To make mobile banking more attractive to customers, banks roll out various offers and discounts. Using mobile banking can help you take advantage of these different offers.

5. A wide range of services:
Mobile banking is so efficient because of the wide range of services that it offers to its customers. Now, it is even possible to open a fixed deposit using mobile banking services. With user-friendly interfaces, mobile banking is fast replacing the need for human interaction in a bank branch. Mobile banking ensures the customer has ultimate convenience and banking at his fingertips.

How to use a recurring deposit calculator?

A recurring deposit is a type of deposit where a fixed instalment amount is invested every month, the catch being all these instalments mature at the same time. It is like opening a new fixed deposit every month with each fixed deposit having the same maturity date. Recurring deposit means one deposits fixed sum of money at a recurring period till maturity.

A recurring deposit is an excellent way of saving small sums of money for a particular purpose. Since all the funds mature at the same time, it can be used to collect funds for a specific purpose, especially for people who can’t take out too many funds all at once to invest in a fixed deposit.

One need not deposit in an RD scheme to find out the final maturity value. Most of the banking operations have completely shifted online which makes it very convenient to find out the rates of interest charged by different banks on their recurring deposits. Using a recurring deposit calculator, it is possible to find out the maturity value of the recurring deposit, and consequently, one can earn the interest on the recurring deposit.

Using an RD calculator is very simple. It requires a few inputs:

• Instalment amount:
This instalment amount can be any amount higher than Rs. 500. Most lenders set their minimum deposit amount at Rs. 500, however, it is advisable to recheck this amount with the bank. The recurring deposit instalment remains fixed for the entire duration of the deposit, so make sure that the instalment amount is something that can be easily set aside every month.

• The term of the recurring deposit:
Banks offer several different options for recurring deposits ranging from 6 months to 120 months. The rate of interest depends on the tenure of the recurring deposit.

• Date of commencement of deposit:
This date means from when the recurring deposit will start. The maturity date of the recurring deposit depends on when the deposit will start.

• Whether the investor is a senior citizen or not:
Senior citizens earn higher interest as compared to other depositors. Most lenders offer 0.5% higher interest on recurring deposits to senior citizens.

Steps to use an RD interest calculator:

• Input the details that a standard RD calculator requires.
• Submit the details
• The calculator will calculate the maturity value and also the interest earned on the recurring deposit.

An RD interest calculator helps to find out which recurring deposit combination can give maximum yield. This can help you plan your investments in the best possible way.

How to calculate personal loan EMI using EMI calculator?

A personal loan is one of the most popular loan options today. This type of loan is unsecured which means the borrower does not need to put up any security to avail this loan. The second most popular feature of this loan is that the lender does not put any conditions with regards to the use of funds. This means the borrower can use it for any purpose such as:

• Medical expenses
• Wedding expenses
• Travel expenses
• Home improvement expenses
• Business expansion expenses

Like all types of loans, you have to repay personal loans in EMIs. EMIs areis a fixed sum of money that you repay to the lender over the loan tenure. The EMI consists of two parts: the interest on outstanding principal and the principal repayment. Banks calculate the rate of interest on the outstanding principal, and the balance amount of the EMI is the principal repayment. The formula is:

EMI = Interest payment + Principal repayment

Over the tenure of the loan, the interest payment reduces you repay the principal outstanding. Thus, the initial EMIs have a higher interest component and vice versa in the last few instalments.

While some lenders provide a complete loan repayment schedule broken down into principal and interest payments, as a borrower, it is worthwhile to do your due diligence before you apply for a personal loan. This can be done by using a personal loan EMI calculator. A personal loan EMI calculator uses:

• Principal amount
• The rate of interest on the loan
• Repayment tenure

Using these three items, the personal loan calculator tells you the exact amount of EMI that a particular combination of interest rate and tenure will get you. By calculating the EMI based on interest rates from different lenders, you can decide on which lender to apply to.

Using a personal loan EMI calculator is very simple.  To use this calculator, you need three items, i.e. the principal amount, the rate of interest, and the repayment tenure. The personal 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 loan in years

On entering these different parameters, the calculator gives you the EMI amount. Some personal loan interest calculators also tell you the total interest that you pay over the loan tenure. The longer the repayment tenure, the more is the total interest outgo, even if the EMI amount is not large.

Using a personal loan calculator can help greatly to make the right decision and save money on interest.

What is Atal Pension Yojana?

One of the main problems in India has always been the lack of a Government-backed pension scheme making pensions available to all strata of the society. However, the Atal Pension Yojana (APY) looks to change that.

What is the Atal Pension Yojana?

The Atal Pension Yojana is a Central Government sponsored affordable pension scheme. A scheme is a form of universal social security for all Indians, especially for the underprivileged. The nature of the Atal Pension Yojana is a defined benefit plan where contributions will lead to a defined pension per month after the subscriber reaches 60 years of age.

The pension under Atal Pension Yojana will be between Rs. 1,000 to Rs. 4,000 per month. This pension amount will depend on the contribution that each subscriber makes to the scheme. The input to the APY scheme depends on:

• The age of the subscriber
• The targeted monthly pension post retirement

The Government has released a contribution chart with differing contributions for pensions from Rs. 1,000 to Rs. 4,000. The inputs for each slab of pension increase with age. For example, the contribution for Rs. 2,000 pension at 28 years of age is Rs. 194 monthly, Rs. 578 quarterly and Rs. 1,145 half yearly. Similarly, the contribution to a premium of Rs. 5,000 per month at 22 years of age is Rs. 292 monthly, Rs. 870 quarterly and Rs. 1,723 half yearly.

The minimum age to enter the APY is 18 years and contributions can be made until the subscriber reaches 40 years of age. All bank account holders can join the APY by activating the auto debit facility.

The APY account can be opened at the bank branch where the individual's savings account is maintained. Information about the scheme and auto-debit will be given via mobile. It can also be opened online.

Benefits of APY:

The APY is a scheme primarily based for the unorganised sector to receive fixed monthly pensions after reaching 60 years of age. As such, it provides a source of fixed monthly income to them.

To make the APY more attractive, contributions made to the scheme get an income tax deduction under Section 80CCD.

One of the Atal Pension Yojana benefits is that the pension becomes immediately payable to either of the spouse in case of death of the subscriber. 

The scheme is hassle-free for the subscriber since contributions are made via auto debit facility. The only caution that the subscriber has to take is to maintain an adequate balance in the savings account.

How to take a loan on credit card?

A credit card is one of the most popular modes of payment today. It is a plastic card that enables the holder to shop up to the particular credit limit of the card. The bank allows you to borrow interest-free up to the credit limit each month for different transactions done both online and offline.

However, that is not all that a credit card can be used for. It is also possible to get instant loans on credit card in case of emergencies when quick cash infusion is required. This cash can then be repaid over time. A loan on credit card is also called a loan against credit card. This is not the same thing as cash withdrawal from the credit card. Cash withdrawal on credit card results in a reduction in available credit limit whereas a credit card loan is an actual loan against the credit card.

Features of a credit card loan:

• These loans are quick loans on credit cards. Once applied for, they are instantly approved and the cash gets transferred to the bank account of the applicant.
• The repayment of a credit card loan is in the form of EMI which is billed in the regular credit card statements from the month it is borrowed. Interest is charged on the amount outstanding.
• There are no documents required for instant loans on credit card. As such, each cardholder is automatically approved for a credit card loan depending on a good credit relationship.
• Some bankers offer a system where the loan instalment amount is debited from the bank account of the cardholder instead of reducing the credit limit.

How to apply for instant loans on credit card?

• Internet or Mobile Banking:
You can apply for instant loans on credit card via Net Banking of the respective bank. You can also apply via the mobile banking application of the bank

• Customer care:
Another way to apply for a credit card loan is to call up the customer care centre of the bank. Alternatively, you can also talk to your relationship manager to get it processed.

• Visit the bank branch:
Visiting the bank branch and filling out a form is another way to apply for quick loans on credit card. The bank branch will process the loan, and the funds will get credited to your account.

A credit card loan is like a personal loan, without the need for documents. However, before applying for such a loan, it is better to inquire about the rates of interest from your bank and only apply for this in case of extreme emergency when funds are quickly required.