How To Calculate Two Wheeler Loan EMI?

Indians have an undying love for motorcycles. There are many reasons for this sentiment. First of all, the majority of Indians cannot or will not buy a car.


For starters, the cost of owning a car is far greater than owning a bike. Secondly, the price of essential fuels like petrol is being hiked sporadically. Hence, a car will only add to the financial woes of the common Indian. A bike, on the other hand, will not as they are known for their fuel-efficient nature.

In this context, it would be unwise to acknowledge that the price of motorcycles in India is also increasing periodically.

Hence, the average person can’t buy their preferred bike with cash.

So what is the solution?

Well, one can always apply for a bike loan.

What are the benefits of buying a bike via a motorcycle loan?

There are many. 

Some of the most compelling ones are mentioned in the sections below – 

  • There is a difference between personal loans, business loans and motorcycles loans. The difference lies in the low-interest rates that entail motorcycle loans. The low-interest rates of motorcycle loans allow the loan applicant to keep their monthly budgets intact.
  • Back in the day, bike loans were dreaded by bikers as they came with non-flexible terms. That is not the case anymore. Traditional lenders and NBFCs now offer motorcycle loans with flexible debt repayment options.
  • Bike loan applicants can customise the motorcycle loan scheme in a bid to keep EMIs affordable and interest rates low.
  • Applying for a bike loan back in the day was a gruelling process. One had to pay several visits to the lender’s office in a bid to get their loan application approved. That is not the case anymore. Thanks to the internet, leading traditional lenders as well as NMFCs now offer paperless bike loans. By applying for paperless bike loans, borrowers can get their applications approved in no time. Secondly, all necessary documents can be uploaded remotely.
  • The best part about applying for a motorcycle loan these days is that one can get their loan sanctioned in a single business day. This ensures that one can take their bike home the same day.
  • One also has the option to apply for 0 downpayment loans. This particular variant of bike loan allows one to buy a bike without paying the dealer a single penny. The whole sticker price of the bike will be paid by the lender. There is a catch though – 0 downpayment loans come with hefty EMIs and high-interest rates.

How are EMIs of a motorcycle loan calculated?

Before answering the above question, one should be familiar with the term EMI.

EMI is the abbreviation for Equated Monthly Instalment. It is a portion of the borrowed money + interest that is paid to the lender by the borrower every month.

EMIs are calculated with the help of EMI calculators!

These days, one can calculate the EMI that would entail a motorcycle loan by using a bike loan EMI calculator. These tools are available on the websites of banks as well as NBFCs. One can also find these tools in the leading bike portals in India.

The working principle of a bike EMI calculator tool is simple. The tool will have blank spaces in it for certain parameters. The parameters are as follows – 

  • Tenure of the loan
  • Principal amount (borrowed sum) and
  • Rate of interest.

The user would need to fill up the blank spaces with parameters that they find suitable to their unique needs. After that, they would need to press the ‘calculate’ button. The result would show the number of EMIs one would have to pay to their preferred lender. The result will also show the tentative EMI amount.

It is best to remember that the results shown in an EMI calculator are approximate values. Accurate values will only be available when one applies for the loan at their preferred lender.

For more details, it would be best that one consults with the spokesperson of their preferred lender. 

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