A two-wheeler loan is a great product offered by banks and
NBFCs that can help you bring you’re your favorite two-wheeler – whether it is
a scooter or a bike. Often touted as the cheapest loan you can get, it can be
repaid in easy and budget-friendly equated monthly installments (EMIs) in
tenures lasting over 3 to 5 years, depending upon the lender you choose. But as
a practice, it is better to use a loan EMI calculator and understand the exact
EMI payable before you approach a lender. Here are 4 reasons why you need to
use a bike
loan EMI calculator before applying for the loan.
You can compare interest rates offered by different
lenders
Every lender provides the loan EMI calculator on their
website. You can shortlist a few lenders and use the EMI calculators on their
website to understand the EMI payable against the principal loan amount needed
and the various interest rates and tenures. You can note down these figures in
a separate Excel sheet by listing the EMI payable in one column and the lender
in the other and compare which bike loan deals works out the best for you. You
can also create an advanced sheet in which you can enter the EMI payable
against different interest rates and tenures, offered by the same lenders as
well.
You can get accurate and immediate results
The EMI calculator computes the payable EMI against various
interest rates and tenures to the last, accurate decimal point. Moreover, since
these are electronic calculators, the calculation is done in a fraction of a
second. You just need to know how to calculate two-wheeler loan EMI using the
calculator. Basically, you just need to enter the principal amount you wish to
borrow, the interest rate you can afford to pay and the tenure (in months), in
which you can repay the loan and the calculator will instantly compute the payable
EMI with 100% accuracy.
It prepares you before you approach a lender
Another good reason to use the two-wheeler loan EMI
calculator is that it prepares you before you approach a lender. Since you are
already aware of what the loan will cost, you would approach a lender only when
you are prepared to repay the loan. This research also eliminates any chances
of your loan getting rejected and your credit rating falling. Moreover, there
would be no surprises or any reason that causes disappointment if you use the
calculator before approaching a lender, because you can calculate the loan
processing fees and other basic charges while calculating the monthly payable
EMI amount.
It eliminates the scope of manual errors
Although you can use manual EMI calculators too, there is a
good chance that manually calculating the payable two-wheeler loan
EMI can result in various manual errors. These mistakes in calculation can
prove risky and even result in your loan being rejected, which can further have
a negative impact on your credit scores. Not to mention, the manual calculation
method is long, tedious and time-consuming and may not always provide accurate
results. As such, it makes more sense to use the electronic EMI calculator as
opposed to a manual one.
