Having a two-wheeler facilitates a daily commute and is more convenient. Acquiring a scooter or bike is a significant expenditure. Most people use financing alternatives to better absorb the cost. While taking a loan, understanding the calculation of the Equated Monthly Installment (EMI) becomes essential.
The Two-Wheeler Loan EMI Calculator assists the applicant in arriving at an estimated monthly payment amount before applying for a loan. This calculator gives a good idea of how much they have to pay every month depending on the loan amount, interest rate, and duration.
Have a look at this tutorial on how to calculate the EMI of a Hero FinCorp Two-Wheeler Loan. Knowing all these calculations will assist in opting for the best repayment schedule without any financial stress.
What is an EMI?
An EMI is the amount of money a borrower remits monthly to repay a loan. It has two elements:
- Principal Amount – The amount of the actual loan borrowed by the borrower from the lender.
- Interest Amount – The extra payment charged on the loan amount by the lender.
EMIs are constant during the loan term, making it easy to repay. The EMI can be calculated using a Two-Wheeler Loan EMI calculator based on various loan parameters.
Factors Influencing EMI of a Two-Wheeler Loan
Various factors decide the EMI on a Two-Wheeler Loan. It is crucial to know these factors to make informed financial decisions.
1. Loan Amount
The amount borrowed from the lender directly affects the EMI. A higher loan amount results in a higher EMI. Borrowers should choose a loan amount that suits their financial capacity.
2. Interest Rate
Lenders charge interest on the loan, which impacts the EMI. A lower interest rate means a lower EMI, reducing the total repayment amount.
3. Loan Tenure
The loan period is also very important while calculating EMI. If the tenure is long, then the monthly EMI is low, but the interest paid in total is higher. If the tenure is short, the EMI will be high, but the debt will be repaid soon.
4. Down Payment
The larger down payment decreases the loan amount, hence decreasing the EMI. The borrowers need to pay a decent down payment to make repayment easier.
5. Processing Charges and Other Fees
There are lenders who impose processing fees and other such concealed charges, which impact the loan amount. These need to be taken into account while determining the EMI.
A Two-Wheeler Loan EMI Calculator assists in balancing these parameters to arrive at an EMI that is within a budget.
How to Calculate EMI Manually?
Though online calculators make it easy, borrowers must know the manual calculation process to check the EMI amount.
Where:
P = Loan amount (Principal)
R = Monthly interest rate (Annual rate divided by 12)
N = Loan tenure in months
Example Calculation
Assume a borrower borrows Rs 50,000 at an annual interest rate of 14% for 24 months.
Monthly interest rate = (Annual rate/12)/100
= (14/12)/100 = 0.0116
EMI = Rs 2401
Rather than calculating complex math by hand, lenders can apply a Two-Wheeler Loan EMI calculator to find instant answers.
How to Apply Hero FinCorp’s Two-Wheeler Loan EMI Calculator?
Hero FinCorp offers a simple EMI calculator that borrowers can use to estimate their monthly instalments. The calculator makes loan planning easier and enables borrowers to change loan parameters according to affordability.
Steps to Apply the EMI Calculator
- Go to the Hero FinCorp official website.
- Open the Two-Wheeler Loan EMI Calculator tool.
- Enter the loan amount.
- Enter the interest rate applicable.
- Choose the loan tenure (in months).
- Click on “Calculate” to see the EMI.
The tool automatically shows:
- Monthly EMI amount
- Total interest payable
- Total repayment amount
This enables borrowers to select the optimum loan terms best suited to their financial requirements.
Why Should You Use a Two-Wheeler Loan EMI Calculator?
A Two-Wheeler Loan EMI calculator is a useful tool that helps borrowers make intelligent financial choices before availing themselves of a loan.
1. Assures Accurate Calculation
The calculator does away with errors that happen due to manual calculations. It gives accurate EMI values depending on the loan details entered.
2. Saves Time
Rather than employing intricate mathematical formulas, borrowers are able to obtain instant EMI estimates with a few clicks.
3. Assists in Financial Planning
Knowing the EMI in advance enables borrowers to manage their monthly budget properly. This avoids financial pressure in the future.
4. Facilitates Loan Comparisons
Borrowers can compare loans of various amounts, tenure, and rates of interest to determine the best loan for them.
With the use of the Two-Wheeler Loan EMI calculator, borrowers are able to select a repayment plan compatible with their financial potential.
What is Two-Wheeler Loan Eligibility?
Before they apply for a loan, the borrowers must satisfy the Two-Wheeler Loan eligibility criteria. This will enhance the prospects of the loan being sanctioned and also obtain good terms for the loan.
Eligibility Criteria
Borrowers are eligible for a Hero FinCorp Two-Wheeler Loan if they:
- Are 18 years or older.
- Have a regular source of income to repay the loan on time.
- Have a good credit record for improved loan terms.
Documents Required for Loan Approval
- Applicants must provide the following documents:
- Identity Proof (Aadhaar Card, PAN Card, Passport)
- Address Proof (Utility bill, Voter ID, Driving License)
- Income Proof (Salary slips, bank statements)
Satisfying the Two-Wheeler Loan eligibility criteria makes the loan approval process smoother.
Advantages of Availing a Two-Wheeler Loan from Hero FinCorp
Hero FinCorp provides various benefits that facilitate easy repayment and loan affordability.
1. Flexible Repayment Options
Borrowers can select a repayment term of their choice.
2. Competitive Interest Rates
Reliable lenders like Hero FinCorp offer affordable interest rates, which make repaying the loan easy.
3. Fast Loan Processing
Loan processing and disbursement are quick and hassle-free. Borrowers may check the Two-Wheeler Loan EMI calculator before applying to choose the most appropriate repayment schedule.
Conclusion
EMI calculation before loan procurement facilitates better financial decision-making by borrowers. The Two-Wheeler Loan EMI calculator is a fantastic tool that helps you get accurate computations. By using this tool, you can get a precise estimation of your monthly obligations. Besides this, check your Two-Wheeler Loan eligibility criteria beforehand to go through a smooth processing.
Disclaimer:
The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader’s discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.