Two Wheeler Loan EMI Calculator

EMI calculator is one of the online services that several banks provide these days. In these calculators, you can find an estimated EMI amount for your two-wheeler loans. You can add the details of the loans and get an EMI rate instantly.

The mathematical formula to manually calculate the equated monthly installment (EMI) for your bike/scooter loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^(N-1)]

Here, the variables stand for:

EMI – Equated Monthly Installment.
P – The principal amount that is taken as a loan for the two wheeler.
R – The yearly rate of interest.
N – The number of months for which you took the loan.

To understand it better, let’s take an example. Suppose, you took a bike loan of Rs. 50,000 from a bank at an interest rate of 12% for a period of 2 years (24 months). Then, by using this formula we can calculate the EMIs that you will be required to repay every month to the bank.

Firstly, we need to convert the annual rate of interest into a monthly rate of interest, so the outcome would be, 12/12 = 1%.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

EMI= [50,000 x 1/100 x (1+1/100)^24 / [(1+1/100)^24 – 1)

EMI= Rs. 2,354

Hence, the EMI to be paid every month on a bank loan of Rs. 50,000 for 2 years at an annual interest rate of 12% is Rs. 2,354. Here, the total interest amount to be paid will be Rs. 6,488 in 2 years. At the end of your loan tenure, you would end up paying a total amount of Rs. 56,488 against your principal loan amount of Rs. 50,000.

These calculators are useful because they allow you to compare several loans from different banks while being in the comfort of your room. Now, you don’t need to visit several banks to have an idea of which loan will be perfect for you. This makes the decision-making process faster. This paired with all the information needed on the website makes it quick for you to get a loan.

EMI calculators are pretty simple to use. There are some basic steps to follow before getting your EMI amount for your loan.

Follow the steps given below to get your EMI for a two-wheeler loan:

• Check Eligibility: Most bank websites provide services where you can check if you are eligible to get two-wheeler loans. Fill in the form they have and click enter. This gives you if you are eligible or not.
• Enter Loan Amount: Once you are eligible for the loan you can redirect to the EMI calculator and enter the loan amount you are looking to get from the bank
• Enter Interest Rate: The next step is to enter the interest rate of the loan you are looking to get from the bank. The interest rate details would be given on the information page of the bank website. In a lot of calculators, this field gets filled up automatically when you are eligible for the selected loan.
• Enter Loan Tenure: This is the tenure for your repayment of the loan. You can enter the tenure you are most comfortable with. The good thing here is, you can compare the EMI amount with different tenures and see what time period suits you the best.

With these steps, you are done. Just one click, and you will get to know the estimated EMI amount you need to pay in the desired tenure.

Most of these steps are common for all kinds of loans. If not, there are instructions given on the website to use the EMI calculator which are self-explanatory.

Here are some common features of two-wheeler loans:

• Manageable EMIs: Two-wheeler loans can have tenure between 6-12 months. This time period makes the monthly EMIs affordable and manageable for the working class individuals.
• Minimum Paperwork: These loans do not have elaborate paperwork. The documents required are always mentioned clearly and it is easier and faster than ever to avail these loans.
• Online Services: Most of the banks these days have several online services that can be very useful for customers. Some of these are automated repayment options, EMI calculators, detailed blogs about the loans, etc.
• Various Repayment Modes: with net banking and UPI, repayment of loans has become really easy these days. Banks have various facilities for repayments. Several net banking services provide scheduled payment options where you can schedule your EMIs and not worry about forgetting any dates.