Planning to buy a bike on loan? Knowing your EMI (Equated Monthly Instalment) beforehand is crucial. It helps you determine your monthly financial commitment and choose a loan plan that fits your budget. Whether you apply for a two-wheeler loan online or offline, knowing how your EMI is calculated can help you plan your finances effectively.
This blog will help you learn how to calculate your bike loan EMI easily and how the EMI calculator available on IDFC FIRST Bank’s website can be very useful while planning your purchase.
What is a bike loan EMI?
A bike loan EMI is a monthly instalment you pay to the bank for repayment of your loan over the selected tenure. It includes both the principal as well as the interest amount. The EMI depends on the total loan amount, rate of interest, and loan term. Here is a simple example of an EMI calculation:
It isn't easy to compute EMI manually. Thankfully, banks like IDFC FIRST Bank provide an easy-to-use online EMI calculator for this purpose.
What affects your bike loan EMI?
The following factors play a crucial role in determining your EMI amount.
Loan amount: The higher the loan amount, the higher the monthly instalment.
Interest rate: The higher the interest rate, the higher your EMI.
Loan term: When you opt for a longer loan term, you can decrease your monthly instalment load but end up paying more interest in the long term.
How to calculate bike loan EMIs using IDFC FIRST Bank's EMI calculator
IDFC FIRST Bank provides a simple and easy-to-use EMI calculator on which you can rely to calculate your monthly payments properly. Here's how you can do so:
Visit the IDFC FIRST Bank website.
Go to the 'Loans' section and choose 'Two-wheeler loans' from the menu.
You'll find an online EMI calculator where you can enter details.
Enter the amount you wish to borrow as a loan.
Choose your preferred loan tenure ranging from 6 to 48 months from the slide bar.
Enter the rate of interest charged.
The calculator will immediately display your monthly EMI, the total interest you’ll end up paying, and the total amount paid as a repayment (principal + interest).
This is an entirely digital process and one that gives you instant and precise results.
Features of IDFC FIRST Bank’s two-wheeler loans
Here are a few reasons why borrowing from IDFC FIRST Bank for your two-wheeler is a wise decision.
You can get a bike loan of up to ₹20 lakhs to buy your two-wheeler, making it easier to buy the bike of your dreams.
The bank offers flexible repayment terms of up to 60 months; therefore, you can select a tenure of your choice at your convenience.
The entire process is quick and online, and hence, you can apply and get approvals either through the website or mobile application.
Competitive interest rates mean that your EMIs are affordable and manageable monthly.
Documents are minimal. So, the process of submitting your loan application is smooth and trouble-free.
IDFC FIRST Bank’s two-wheeler loans are also available at partner showrooms, where dealers assist you personally through the process.
Why should you use an EMI calculator?
A bike loan EMI calculator is worth using because:
It provides you with an error-free monthly payment figure.
It enables you to compare various loan deals based on tenure and interest.
It enables you to plan your finances properly and avoid any financial hassles in the future.
It is free, quick, and available online.
Conclusion
Calculating your bike loan EMI doesn't have to be troublesome. With IDFC FIRST Bank's EMI calculator, you can easily get a clear understanding of your payment schedule and make the right decision. This allows you to choose the best loan amount and a suitable tenure that fits your income and budget.
Disclaimer: This content is part of a marketing initiative.