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Bike Loan EMI Calculator

Two wheeler loan emi calculator

Last Updated 11th May 2021

  • Bike loan interest rates begin from lowest two wheeler loan 11.60%.
  • Lowest bike loan EMI per lakh for a tenure of 5 years is ₹ 2,204
  • A Bike EMI calculator is an effective and reliable tool to plan your two wheeler loan.
Loan Amount EMI for 1 Year Loan EMI for 2 Year Loan EMI for 3 Year Loan
₹ 50,000 ₹ 4,433 ₹ 2,344 ₹ 1,651
₹ 1 Lakh ₹ 8,866 ₹ 4,689 ₹ 3,302
₹ 2 Lakh ₹ 17,732 ₹ 9,377 ₹ 6,605
Apply for Two Wheeler Loan @ 11.60%*

Two Wheeler Loan EMI, Bike EMI - All Banks

Bank Lowest EMI Per Lakh Loan Tenure
Axis Bank 10.85% ₹ 217 for 5 years
SBI 16.05% ₹ 352 for 3 years
HDFC Bank 9.10% ₹ 249 for 4 years
PNB 9.55% ₹ 210 for 5 years
Bajaj Auto Finance 13.26% ₹ 338 for 3 years
IndusInd Bank 21.00% ₹ 377 for 3 years
Allahabad Bank 10.40% ₹ 214 for 5 years
Andhra Bank 9.90% ₹ 212 for 5 years
Bank of India 7.45% ₹ 200 for 5 years
Union Bank of India 9.90% ₹ 322 for 3 years
United Bank of India 9.55% ₹ 210 for 5 years
Corporation Bank 9.90% ₹ 322 for 3 years
Indian Bank 10.40% ₹ 214 for 5 years
Karnataka Bank 8.48% ₹ 205 for 5 years
Jammu And Kashmir Bank 8.70% ₹ 206 for 5 years
Canara Bank 9.00% ₹ 318 for 3 years

Bike EMI Calculator

In today's fast-paced time, owing to the convenience and to save themselves from traffic and maintenance charges, many prefer bikes or cars. However, purchasing a bike may cost a lot for people who don't have enough savings and earnings. In such situations, it is the bike loan or the two-wheeler loan that comes to the rescue.

A bike loan is a credit facility that allows the borrower to purchase a bike with a loan amount. However, similar to all loans, bike loans require a repayment of the loan amount. While the repayment of a bike loan is a compulsory thing to do, it can be hard-hitting and confusing for many. Thereby, it is important to preplan the bike loan in advance, so that expenses can be well planned. This can be done using a bike loan EMI calculator. Bike loan calculator is an online tool that functions on a mathematical algorithm. The calculator gives an estimate of EMI based on an expected loan amount, interest rate and loan tenure.

Two Wheeler Loan Amortization Schedule

A two-wheeler loan calculator amortization schedule refers to a complete table of periodic bike loan payments presenting the principal and interest that comprise each EMI until the loan amount is repaid. In simple terms, it provides a roadmap of spreading out a credit option like two-wheeler loans into a series of fixed repayments. While each monthly EMI remains the same, the payment is made up of components that vary over time. It assists banks and financial institutes in keeping track the outstanding balance or interest at any point of the repayment schedule.

Bike Loan Amortization Calculator

A two-wheeler amortization schedule is a table of periodic loan payments that shows the principal and the interest amount that comprise each bike loan EMI payment until the loan is paid off at the end of its term.

In the Amortization schedule, your bike loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Two Wheeler Loan Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Two Wheeler Loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Two Wheeler Loan of ₹ 50,000 for 4 years at an interest rate of 11.60%. EMI calculated for this loan amount is ₹ 1,307 and the total annual EMIs to be paid annually is ₹ 15,683. The EMI schedule of loan for 4 years is explained below in the table –

Amortization Schedule for a Two Wheeler Loan of ₹ 50,000 over the 4 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 3,639 ₹ 6,816 ₹ 10,455 ₹ 43,184
2022 ₹ 4,423 ₹ 11,260 ₹ 15,683 ₹ 31,925
2023 ₹ 3,045 ₹ 12,637 ₹ 15,683 ₹ 19,287
2024 ₹ 1,499 ₹ 14,184 ₹ 15,683 ₹ 5,104
2025 ₹ 124 ₹ 5,104 ₹ 5,228 ₹ 0

Each Two Wheeler Loan EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Two Wheeler Loan of ₹ 50,000 , taken at the lowest interest rate of 11.60%, EMI paid is ₹ 1,307 and an annual total of EMIs is ₹ 15,683, the interest component is ₹ 5,257 while the principal component is ₹ 10,425 in year 1 of loan disbursement. You repay only 20.85% of the total principal after paying 12 EMIs during the first year.

In year 4, the interest component of EMI is around 6.01%, while the principal component is around 93.99%. Upto 4 years, you have cumulatively repaid 100% of your total Two Wheeler Loan.

Two-wheeler EMI Calculator Formula

In addition to the online two wheeler loan EMI calculator, you can also calculate your bike loan monthly EMI with a mathematical formula. This can be done by using the below-mentioned formula:

E= P. r. (1+r)^n/[(1+r)^n -1]

Here,

  • P is the principal loan amount that you want to apply for
  • r is the rate of interest charged per month which is calculated as the rate of annual income/ (12*100)
  • n is the loan tenure in months
  • E represents the monthly payments or the EMI

Benefits of Bike EMI Calculator

Two-wheeler EMI calculator calculates your bike EMI and has multiple benefits, which are listed below -

  • Time-saving: Bike loan EMI calculator can save your time by calculating EMI in seconds and does not waste your time in doing tedious and time-consuming calculations. You'll get the output immediately as and when you'll enter the loan related details.
  • Accuracy: Doing manual calculations can sometimes lead to wrong results which can change your two-wheeler loan EMI and can make you change your decision while taking a bike loan. That's why it is well-advised to use an online two wheeler EMI calculator to get correct results.
  • Helps in planning finances: Bike loan EMI calculator tells you about EMI and also lets you know that you would be able to pay that amount back or not. It is better to go for the amount that won't affect your budget and your credit score
  • Allows evaluation of multiple schedules: Two-wheeler loan calculator also allows you to view the amortization schedules and EMIs for different combinations of loan tenures and interest rates, thus allowing you to choose the EMI that suits your repayment or servicing capabilities.

Two-Wheeler Loan Interest Calculator - Impact on EMI

The interest rate offered on a bike loan is of two types, that is the Flat rate and Reducing balance. The Bike loan EMI is this impacted on these two interest rate types, as detailed below: Your two-wheeler loan EMI will be higher in case of the loan availed of on flat rate while EMI will be lower with reducing rate.

Flat interest rate: Here, the interest rate is calculated on the actual principal amount for the entire period. So, if you opt for a loan of ₹ 1 Lakh at 7.45% flat rate of interest for a period of 2 years, the EMI to be paid will be ₹ 4,498 and the total interest per year will be ₹ 3,972. Thus, total interest in 2 years will be ₹ 7,945. This interest, along with the principal amount, is distributed over the entire loan tenure to arrive at monthly bike loan EMI payments. Here, the impact of repayment of capital is not considered.

Reducing balance method: In this EMI calculation method, the interest rate is charged only on the outstanding loan amount. Generally, in this case, the interest rate is higher than the flat rate, but actually, it may turn out to be cheaper as the interest is paid only on the remaining principal amount. Every month some part of EMI goes towards the principal amount; thus, the interest is charged on the remaining amount. Hence, there will be a gradual reduction of the principal amount, and as a result, the same interest will be applicable to the lesser amount. So, if you opt for a two-wheeler loan of ₹ 1 Lakh at 7.45% for two years, the EMI will be ₹ 4,498.

BIke Loan EMI - Modes of Payment

BIke Loan EMI - Modes of Payment

  • ECS mandate in favour of the bank from which the vehicle loan has been availed. One can issue an ECS mandate from one's salary account or normal bank account. There is no risk of cheque bouncing due to signature mismatch or any technical issue when payments are made via this mode.
  • Other modes can include post-dated cheques and payments by demand drafts, though these are rarely used nowadays.

FAQs

What is the EMI range for a bike loan?

Lowest bike loan EMI per lakh for a tenure of 5 years is ₹ 2,204 .

Which is a better personal loan or bike loan?

Personal loans and bike loans are credit facilities that offer financial aid. However, they are distinct from each other in many ways. While a personal loan is unsecured and can be used for any personal use, bike loans are secured loans in consideration of the bike as the security. Also, these bike loans can be used only for the purchase of a two-wheeler or bike. Personal loans can be used to purchase bikes, but the interest rate offered on personal loans is higher in comparison to bike loans. Thus, depending upon one s need one may decide which one is better.

How is EMI calculated on a two-wheeler?

Bike EMI can be calculated using the mathematical formula, E= P. r. (1+r)^n/[(1+r)^n -1] where P is the principal amount, r is the rate of interest and n is the loan tenure in months. In addition to the manual calculations, you can also use the two-wheeler loan EMI calculator to calculate the two-wheeler EMI. These calculators are more reliable in terms of accuracy and efficiency in comparison to manual calculations.

How to reduce your two-wheeler loan EMI?

You can reduce your two-wheeler loan EMI by opting for a longer loan tenure, or by prepaying the loan amount via part-payment or prepayment facility.

Does loan tenure affect two wheeler loan EMI?

Yes, two-wheeler loan tenure does affect your loan EMI. Opting for a longer tenure reduces the EMI burden, but extends it over the years, while opting for a shorter loan tenure, increases the EMI burden but gets the loan repaid quickly.


Two Wheeler Loan News - May 2021
  • 2021-04-30 : PNB Housing Finance posted ₹127-cr net profit in Q4
    PNB Housing Finance reported a consolidated net profit of Rs 127 crore in Q4 backed by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during January-March was down at Rs 1,834 crore from Rs 1,952 crore in the same period of 2019-20. Interest income dropped over 7% at Rs 1,670 crore during the quarter as against Rs 1,803 crore a year earlier.
  • 2021-04-30 : Bajaj Finserv reported a Q4 profit of ₹979 crore
    Bajaj Finserv posted a net profit of ₹ 979 crores in the January-March quarter, which marked an increase of 5 times from the profit of ₹ 194 crores during the same quarter last year. The NBFC reported the surge in profit backed by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with business and mudra loan.
  • 2021-04-30 : AU Small Finance Bank Q4 net profit up 38 per cent at Rs 169 cr
    AU Small Finance Bank reported a 38% hike in its net profit at Rs 168.98 crore for the last quarter of the fiscal ended March 2021. The profit was boosted by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during Q4 FY21 rose to Rs 1,569 crore as against Rs 1,366.60 crore. Interest income moved up to Rs 1,292.37 crore during the reported quarter from Rs 1,183.45 crore in the year-ago period.
  • 2021-04-27 : Bank credit increased by 5.33%; deposit rose 10.94%
    Reserve Bank of India reported that Bank credit which includes retail loans like home, LAP, personal, two-wheeler, car, education and doctor loan along with business and mudra loan grew by 5.33% to Rs 108.89 lakh crore. Further deposits which include fixed and recurring deposits rose 10.94% to Rs 152.15 lakh crore.
  • 2021-04-27 : ICICI Bank reported a massive hike of 261% in its Q4 profits
    ICICI Bank reported a 260% jump in its net profit at Rs 4,403 crore for the quarter ended March 31, 2021. The profit was boosted by retail loans like home, LAP, personal, two-wheeler, car, education and doctor loan along with business and mudra loan. Further, the bank reported a total income of Rs 23,953 crore in January-March from Rs 23,443.66 crore in the year-ago quarter.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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