The prices of motorcycles sold in India are being relentlessly hiked over the past two years. This means that the majority of motorcycles in India are out of reach for the common person. So, what can one do? As spending a boatload of cash is not a wise decision especially when cash is king in India.
The solution is to apply for a bike loan.
Why?
The benefits of a bike loan are many. Some of them are as follows –
- The loan will offer a financial cushion to the loan applicant and keep them from breaking their FD or savings.
- With each EMI paid on time, the loan applicant will be boosting their credit score and credit history.
- Bike loans can also help the loan applicant to reduce the financial burden on their shoulders. How? Well, bike loans come with flexible tenures, interest rates and repayment options. Hence, one can choose a loan scheme that suits their needs.
There is a catch though!
One should only apply for a motorcycle loan after they have used a bike EMI calculator.
What is that!?
A bike loan EMI calculator is a free-to-use tool that all NBFCs and banking institutions offer on their official websites. These tools allow borrowers to have a vague idea about the EMIs they would need to bear for the loan.
How does the tool work?
The EMI calculator tool works on the principle of the following mathematical formula –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
The meanings of the variable mentioned in the formula above are as follows –
- P is the loan amount.
- R is the rate of interest and
- N stands for the number of EMIs.
Users would need to put the values as per their preference along with the tenure in months. For more details, one must consult with their financial advisor as soon as possible.
Must read: How To Select The Best Two Wheeler Loan Based On Interest Rate
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