How to calculate interest rate for two-wheeler loan


We all want to own a two-wheeler someday and plan on investing in it at some point. One important thing to consider while taking a two-wheeler loan is the bike loan interest rate. The monthly instalments and cash outflow per month are decided and calculated based on the interest rate. Various factors affecting the rate of interest are mentioned below. 

Factors impacting Two Wheeler Loan Interest Rate

Type of Vehicle:

The type of vehicle you are buying makes all the difference. The interest rate depends on whether you plan to buy a motorbike, moped, scooter, or something else. 

This is another crucial factor that affects the bike loan interest rate. If you are a salaried professional, you get a higher chance of getting a loan with a low-interest rate than a non-working individual with no salary.

Repayment Capacity:
This factor plays an essential role in determining the interest rate as the repayment capacity is considered before granting the loan.

Two Wheeler Loan Calculator Formula

The two-wheeler loan calculator formula depends on:

The amount of loan availed
The rate of interest per month
The tenure of the loan is taken in months like twelve months, six months, etc. 

How to use Two Wheeler Loan Calculator

You must know the EMI amount before availing of a two-wheeler loan. You can calculate the cash outflow and the monthly instalment using the two-wheeler EMI calculator to keep track of your finances. 
You should keep track of your monthly budget if you plan to take a bike on EMI, and you should know the amount you can pay as an EMI every month.
You can use the two-wheeler loan EMI calculator and fill in the required details such as the amount, interest rate, and loan tenure. 
You can put in various amounts, interests, and tenure till the time you get the amount that suits your needs. 

You can adjust the EMI options with various tries and know the amount you can pay every month. The EMI calculator acts as a guide, and you can calculate the amount based on the interest rate and tenure. There are numerous schemes, and the interest rates vary from one to another. The rate of interest you can get also depends on your credit score and credit history. Once you have all the details, it becomes easy to put everything in the calculator and get the exact amount.

Benefits of EMI Loan Calculator

EMI calculator helps you manage your finances as you know the amount you have to pay every month as an instalment. 
You don’t have to crunch numbers and break your head at calculations, which might go wrong manually. The EMI calculator helps you calculate the amount at a click. 
You can choose the tenure according to your requirements, and the interest can also be minimal on estimating the tenure, helping you select a suitable EMI.
You can also choose the loan after comparing the costs and select the one that suits you the best. 
Another benefit that you can get is that it becomes easy for you to bargain for the interest rate and the processing fee. 
You can also gather information and details about the charges involved, which makes you understand the apparent breakup of the payment. 

Therefore, the rate of interest depends on various factors and can be calculated according to those factors. The interest rate on two-wheeler loans also helps you calculate the equated monthly instalments using the EMI calculator, enabling you to keep your finances in check and choose everything based on what suits your needs.