1. Build your Credit Score
2. Reduce your Current Borrowing / EMI Costs
Before choosing a particular lender, it's eminent to understand the product to make sure we select the most suitable terms. With the advent of online banking making fiscal decisions have not only become easier, but also it has become extraordinarily lucid and straightforward. For the heightened convenience of customers, leading insurance providers, banks and third-party financial websites extend a dynamic tool on their portal known as the loan EMI calculator. The tool available on this website offers extensive assistance concerning the financial aspects involved in two-wheeler loan.
In the table described below, we can see the most economical two-wheeler interest rates and the lowest EMIs of leading banks in the country which provide two-wheeler loans. We will be assuming that a processing fee of 2% will be charged on these loans. The processing fee can vary from lender to lender. We have also assumed that the maximum tenure for these loans ranges from 2 to 5 years. This can vary from lender to lender. Let us also assume that the applicant is not interested in pre-paying the loan.
|Name of bank||Lowest EMI (in Rs.)||Lowest rate of interest (p.a.)||Maximum tenure|
|State Bank of India (SBI)||551||11.60%||5 years|
|HDFC Bank||514||8.61%||5 years|
|Punjab National Bank (PNB)||829||11.90%||3 years|
|Andhra Bank||535||10.35%||5 years|
|UCO Bank||554||11.85%||5 years|
|Allahabad Bank||552||11.70%||5 years|
|Oriental Bank of Commerce||809||10.20%||3 years|
|Bank of India||518||8.90%||5 years|
|Lakshmi Vilas Bank||559||12.25%||5 years|
|Nainital Bank||1,143||9.05%||2 years|
|City Union Bank||588||14.50%||5 years|
|Corporation Bank||559||12.25%||5 years|
|Saurashtra Gramin Bank||595||15%||5 years|
The most apparent use of this tool is the amortization table which provides a monthly breakup of principal and interest costs which go into determining the EMI amount.
A user-friendly loan EMI calculator can assist you in understanding the EMIs for purchasing a bike with a loan. It is always advised to know your exact EMI amount before you apply for a loan. This can ensure that you have a stable borrowing process without any financial struggle. You will also be able to determine the right loan amount according to your repayment ability and the interest rate.
Let us consider an example to discern how the two-wheeler loan EMI calculator works. We will consider that the rate of interest for a particular two-wheeler loan is 11.10% with a processing fee of 2%. Let us also suppose that the borrower doesn't want to make any pre-payments. The table shows the various amounts of EMI for different tenure and loan amounts.
|Loan amount (Rs.)||Interest rate (Mean)||Processing Fee (Rs.)||EMI for 2 years (Rs.)||EMI for 3 years (Rs.)||EMI for 4 years (Rs.)||EMI for 5 years (Rs.)||EMI for 6 years (Rs.)||EMI for 7 years (Rs.)|
Two-wheeler loan EMI calculators are beneficial as they help an individual in designing their loan expenses. A two-wheeler loan EMI calculator is an online tool which is very easy to use, and it can be appropriated by anyone who doesn't even have any prior knowledge of how it is calculated.
Below listed are the reasons why everyone should use the two-wheeler loan EMI calculator: