Two Wheeler Loans
Transportation has become a necessity to travel from one place to another. A two-wheeler is a cost-effective means of transport that is convenient and effective to travel from one place to another. The two-wheelers are popular amongst the masses because they have low maintenance requirements and help quickly navigate heavy traffic, especially in metropolitan areas. One effective way of financing two-wheelers is with the help of a loan for two-wheelers. Muthoot FinCorp is the top reliable financer through which you can avail of the loan and repay it over the specified tenure.
With the help of its loan EMI calculator for two-wheelers, you can determine the amount of equated monthly installments on the two-wheeler (EMI) you need to pay for the fixed tenure. Moreover, with the help of a bike loan EMI calculator, you can choose an EMI by readjusting the tenure, principal or rate of interest. It helps in planning monthly EMI’s and paying off-bike loans without defaults. So, let us understand the advantages and terms associated with it.
How to Use a Bike Loan EMI Calculator?
For calculating interest payable and EMI amount using the calculator, three inputs are required. These are principal value or loan amount, interest rate, and tenure. These terms are explained below.
Principal Value refers to the total amount which the lender sanctions. It must be repaid with the interest rate over the tenure of the loan.
Interest Rate refers to the rate which is charged against the principal value for the tenure of the loan. It is divided into types. These are fixed and floating interest rates.
Tenure refers to the total duration or period for which the loan and interest are borrowed. The amount is repaid in the form of EMI over the specified period. All borrowers must pay the amount in the tenure to avoid defaults.
Also, Read- How To Use Two-Wheeler Loan Emi Calculator
Muthoot FinCorp’s bike loan EMI calculator uses these three factors to determine the EMI and the interest payable amount. It can be calculated by following the steps listed below.
You must determine the principal amount by adjusting the slider against the needed value. For instance, Muthoot FinCorp’s two-wheeler loans provide finances that are about 100%* of your two-wheeler’s on-road value.
In this step, you need to choose the tenure for which the loan is taken. This input is entered in months. The slider can be moved right or left to match the number of months in which the EMI payments are made.
In the third step, You must enter the interest rate for bike loans. At Muthoot FinCorp, the internet rates for such loans begin at 0.99% p.a. However, the interest rate is influenced by the borrower’s eligibility.
As the slider is moved, the figures for the EMI, total principal and the total loan amount are determined in real-time.
What are the Factors Affecting Eligibility of Two-Wheeler Loans?
All lenders are cautious while sanctioning loans to the borrower. This is to evaluate the repayment capacity of the individual before payment. The borrower must check numerous factors such as financial obligations and income before applying for such loans. These are explained below.
The loan for two-wheelers eligibility is influenced by income levels. This is because a two-wheeler loan is a type of unsecured loan; the borrower has to show evidence of a stable income source. It is essential since higher income results in lower rates of interest.
One key reason for the rejection of such loans is large outstanding debts. Therefore, it is essential to meet all prior loans obligations to ensure smooth disbursement of the loan amount. In the absence of prior financial commitments, the chances of repayment significantly increase. This leads to the development of a reliability factor for the lender.
Read more: What Are the Factors That Determine Two-Wheeler Loan Interest Rate?
Muthoot Blue has a reputation that has reflected high-quality practices, steady growth, and the highest level of customer satisfaction over the decades. Currently, Muthoot FinCorp, one of its flagship companies, is among the largest lending companies in the country. Its two-wheeler loans are designed to provide the most flexible repayment tenures and attractive interest rates to ensure maximum benefits for the borrowers. For more information, contact us.