To get from one area to another, transportation has become a necessity. A two-wheeler is a low-cost mode of transportation that is both convenient and effective for getting around. Two-wheelers are popular among the general public because they require little maintenance and may assist people to move through congested regions quickly, especially in urban areas. A two wheeler vehicle loan is one of the most effective ways to finance two-wheelers.
You can use a vehicle loan EMI calculator for two-wheelers to figure out how much equated monthly instalments on the two-wheeler (EMI) you’ll have to pay over the course of the fixed period. You can also choose an EMI by modifying the tenure, principal, or rate of interest with the use of a vehicle loan EMI calculator. It aids in the planning of monthly EMIs and the timely repayment of motorcycle loans. So, let’s look at the benefits and terms that come with it.
How Does A Vehicle Loan EMI Calculator Work?
Three inputs are required to calculate the interest payment and EMI amount using the calculator. The principal value of the loan, the interest rate, and the term of the loan are the three factors to consider.
The total amount sanctioned by the lender is referred to as the principal value. It must be repaid over the loan’s term at the interest rate.
The rate levied against the principle value for the duration of the loan is referred to as the interest rate. It’s broken down into many categories. Fixed and floating interest rates are the two types of interest rates.
The overall duration or period for which the loan and interest are borrowed is referred to as tenure. The money is reimbursed in instalments over a set length of time. To avoid defaults, all borrowers must pay the whole amount due during the term.
The steps outlined below can be used to compute EMI
You must move the slider to the required value to determine the principal amount. Two-wheeler loans, for example, offer financing of up to 100%* of the on-road value of your two-wheeler.
In this stage, you must select the loan’s repayment term. This information is given in months. To match the number of months in which the EMI payments are made, adjust the slider right or left.
The interest rate for bike loans must be entered in the third step. The online rates for such loans at the Bank of Maharashtra start at 10.85% per annum. However, the borrower’s eligibility has an impact on the interest rate.
What Influences Two-Wheeler Loan Eligibility?
When it comes to issuing loans to borrowers, all lenders are cautious. This is done to determine the individual’s repayment capacity prior to payment. Before applying for such loans, the borrower must consider a number of criteria, including his or her financial responsibilities and income.
Income levels have an impact on the loan eligibility for two-wheelers. Because a two-wheeler loan is an unsecured loan, the applicant must demonstrate that he or she has a steady source of income. It’s crucial because increased revenue means lower interest rates.
Large outstanding debts are a major factor for such loans being rejected. To ensure a seamless delivery of the loan money, it is critical to meet all preceding loan commitments. The possibilities of payback grow dramatically when there are no past financial commitments. This leads to the formation of a lender’s reliability factor.