Tips to Plan your Bike Loan EMI Payment Smartly
A bike loan is a two-wheeler loan that can help you afford your dream pair of wheels without having to wait years to save enough money. This loan can help you finance a two-wheeler purchase in a convenient and hassle-free way. As two-wheelers are the vehicle of choice for many Indians, most leading banks offer this loan to aid the customers.
Another facility to make the loan repayment process easier for the borrower is an EMI or Equal Monthly Installments which is meant to take off the burden of repaying the whole amount from the borrower’s shoulder. You can calculate your two wheeler loan EMI through a two-wheeler EMI calculator that is available on most bank websites. You just have to enter the loan amount, the rate of interest as well as the duration of the loan to calculate the EMI.
(EMI = Principal Amount + Interest on Principal amount)
Here’s how you can plan your Bike Loan EMI smartly
Consider your monthly Income
The first thing a borrower must consider before applying for the EMI facility is their monthly income. If you have a stable and steady income then you will be able to manage your EMI smoothly. So keep your earnings in mind while planning the monthly installments.
Calculate your monthly expenditure
The next thing to calculate and keep in mind is your monthly expenditure which is connected to the standard of living. If you are able to manage your expenditure easily with your monthly earnings then that is a good sign. While calculating the expenditure, also think of your future and if there are any big purchases to be made in the future.
Check your Credit score
It is very easy to calculate the credit score with the help of cred score calculators available online or even by consulting your bank. Having a healthy credit score is a good way to determine whether a person is ready to take a loan or not. It will also help you plan your EMI more effectively.
The Rate of Interest and Loan Duration
The rate of interest or ROI offered by your bank will also be a factor in deciding your EMI amount. The rate of interest can change during the tenure of the loan. Hence, calculate the bike loan interest rates on the basis of the loan duration.
Don’t forget your age
Your age can also make a difference and be a contributing factor in planning your EMI. The reason for this is that a person in their 20s has lesser responsibilities as opposed to a person in their 30s who has to manage and balance various expenses. The income will also increase with age and thus, your age plays a part in planning your EMI.
The EMI can be managed easily if you keep all these factors in mind while planning. It is a convenient way to balance your loan repayment over a longer period of time, thus reducing pressure on your pockets and mind.