A two wheeler loan, also known as a bike loan, is a secured loan used to purchase a bike of the borrower’s choice, with the two wheeler serving as security. The two wheeler will be registered in the bank’s name at first, but once the loan is paid off, the bank will send a No Objection Certificate (NOC) to the borrower, who must use it to transfer ownership of the bike to your name.
In a big city where commuting has longer routes and distances, having your two wheeler handy is always a good choice. Applying for a two wheeler loan in New Delhi can be considered as a better choice although New Delhi has public transport but for shorted distance or near by location, a two wheeler is a necessary.
Let’s understand about two wheeler loan EMI Calculator
A two wheeler loan calculator is an online tool that helps you in evaluating the amount you’ll have to pay in EMIs to pay off your two wheeler loan. You only need to fill out the financial information to get the necessary information. Once you provide with the details like your down payment amount, the loan period, and the bike loan interest rate, the EMI calculation formula for the two wheeler loan will compute the EMI amount you will have to pay every month.
How to compute your EMI using a two wheeler loan calculator?
While calculating EMI, the following three variables are required to use a two wheeler loan EMI calculator:
It refers to the amount you borrow and has to be repaid over time along with any pertinent interest.
It is the rate chargeable as the interest on the principal loan amount.
It is the time in which the amount of loan, and interest, must be paid back in equal monthly instalments (EMIs).
Following are the steps to use a bike EMI calculator:
Step 1: Enter the principal amount utilizing the first slider. You can enter the value directly or adjust using the ‘+’ and ‘-‘ symbols.
Step 2: Adjust the two-wheeler loan interest rate to the correct value using the second slider. You can adjust the same with the ‘+’ and ‘-‘ signs, or type individually in the box.
Step 3: With the help of the third slider, you will get the desired loan term. You can use the ‘+’ and ‘-‘ symbols to increase or decrease the value, or manually enter it in the box.
Once you have completed all the above three steps, the calculator will show the precise EMI value. However, there can be substantial changes according to cities let’s say if you are looking for two wheeler loan in New Delhi, it can have different interest rate according to market and different in other city.
There are various benefits of utilizing a two wheeler loan EMI calculator. Some of them are described below:
Using the two wheeler EMI calculator enables you to know in advance if the bike EMI is within your financial capacity. If not, you have the choice to adjust the loan tenure value to figure out an EMI that suits you.
The calculator helps you to know your EMI value in advance which helps you in planning your monthly spending. By making sure you do not have a lack of funds for your bike loan EMI instalments and have sufficient funds for your other monthly financial commitments.
If two or more banks offer you to purchase a two wheeler, utilising this online tool will help you in comparing the costs involved will do the trick to choose the most feasible loan offer. All you will need is the quote and then utilize the calculator and note down the result to compare on particular specifications.
For using an online EMI calculator for a bike loan, you need to provide information – loan amount, rate of interest and loan tenure. The best part with the EMI calculator is that there is no other technicality involved.
While applying for two wheeler loan in New Delhi, you need to submit the below-mentioned documents-
- Completed loan application
- 3 Passport size photographs
- Statement of Bank Account/ Pass Book for previous six months
- Proof of residence (photocopies of recent Telephone Bills/ Electricity Bill)
- Proof of identity (photocopies of Voters ID card/ Passport/ Driving license/ IT PAN card)
- IT returns for the three years for self-employed professionals
- Form 16/IT returns for the last two financial years for salaried individuals
These were some important factors to remember when you apply for two wheeler loan in New Delhi, hope the processes mentioned help you get easy and smoothly loan for your two wheeler.