Key Highlights
- Online Bike Loan EMI calculators deliver speed, efficiency and precision, significantly surpassing conventional offline methods in computing monthly repayments
- The bike loan EMI calculation formula is [P x R x (1+R)^N]/[(1+R)^N-1]
- Undertaking a two wheeler loan EMI calculation online is much easier as compared to offline methods.
- It just requires the input of principal, rate of interest and tenure of loan to give estimates to calculate EMI using bike loan calculator.
Did you know that over 13.5 million two-wheelers were sold in India in 2022 alone? This number reflects the surge in demand for bikes, with many individuals opting for two wheeler loans to make their purchase easier. Understanding how to calculate EMI for bike loan is crucial to managing finances effectively while fuelling your dreams of owning a two-wheeler.
It is essential to learn how to calculate EMI for bike loan if you are planning to take out a two-wheeler loan. EMI calculators can be helpful tools for managing finances by providing a clear understanding of the monthly repayment obligations for loans, enabling better budgeting and planning. Read on to discover how to calculate EMI for bike loan.
Bike Loan EMI Calculation Formula
The EMI for bike loan depends on the loan amount, the interest rate and the loan tenure. But, how to calculate EMI for bike loan? Let's delve in.
Bike loan EMI calculation formula is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where:
- P = principal amount or the loan amount
- R = monthly interest rate (annual interest rate/12/100)
- N = number of installments or the loan tenure in months
For instance, let's say you want to calculate the equated monthly installment (EMI) for a loan with the following details:
Principal amount (P) = ₹ 2,00,000
Annual interest rate (R p.a.) = 11.5%* p.a.
Loan tenure (N) = 36 months
To calculate the monthly interest rate (R), we divide the annual interest rate by 12 (months) and then divide by 100:
R = 11.5 / 12 / 100 = 0.0095833
Now we can substitute the values into the EMI formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
EMI = [200000 x 0.0095833 x (1+0.0095833)^36] / [(1+0.0095833)^36-1]
If you solve this equation, you will find that your EMI would be ₹ 6595.
This Two-Wheeler Loan EMI calculation offline method can be time-consuming and prone to mistakes if done manually. Comparing different interest rates can also become a hassle using the offline method.
Calculate EMI Using Bike Loan Calculator
Wondering how to calculate EMI for bike loan online? Online method of two-wheeler loan EMI calculation is done via bike loan EMI calculators. It is not only fast but also highly accurate, reducing the chances of human errors. Follow these steps to calculate EMI using bike loan calculator:
- Step 1: Fill in loan details such as principal amount, interest rate and tenure of the loan
- Step 2: Adjust the figures with the given slider
- Step 3: Loan amount, interest payable and EMI will be calculated as per your inputs
With Shriram Finance, you gain access to online tools like our Bike Loan EMI Calculator, making the loan process straightforward and transparent. Don't wait, explore Shriram Finance's two-wheeler loan options today!
