If you are looking to buy a new bike, taking out a two- wheeler loan in Indore is a great way to finance the purchase without breaking into your savings. Two- wheeler loans are easy to get and they get sanctioned relatively quickly too, allowing you to complete your purchase in the minimum possible time. Before you sign up for any kind of loan, you must remember that this is a financial responsibility that will affect you for a fairly long term. That is why, it is crucial to understand the implications thoroughly before taking a loan. A very useful tool that helps you with this is the online EMI calculator.
What is an EMI?
EMIs or Equated Monthly Instalments are the repayments on your loan that you make to the lender. The duration over which you have to pay them is determined by the tenure or length of your loan. The amount of each EMI is determined by both the loan amount you opted for and the interest charged. Each EMI consists of a principal amount plus an interest amount.
In the initial months, the interest payment component is higher and the principal payment amount lower and this reverses as the loan approaches maturity.
Why check EMI outgo on priority?
When you take your online bike finance, one of the first things to check is your EMI payments. This is because knowing what you will need to pay each month enables you to plan ahead for the liability. If you fail to pay your EMI on time, you risk attracting a penalty, which adds to the overall cost of your loan. If you miss several payments and the lender believes you have defaulted, that is failed to repay, the loan, the bike you purchased with the loan amount may be repossessed too.
Delayed EMIs or defaulted EMI payments leave a black mark on your credit history and pull down your credit score dramatically. Just like your online bike finance provider, any other lender too first takes a look at your credit history before approving your loan. A poor credit score makes you a big risk for lenders and hence, makes getting a loan a very difficult process for you in future.
How to use an EMI calculator?
There are numerous EMI calculators available online to help you figure out exactly how much you will be shelling out each month when you opt for online bike finance. You can use these to compare the terms offered by various lenders too. Comparing EMIs tells you how much outgo each lender’s loan will impose on you and you can decide which one is most affordable for you.
To use an EMI calculator, you need to have at hand the total amount of two wheeler loan in Indore you want to take, the interest rate charged and the tenure, that is, the loan duration. Simply input these three details in the given boxes and the online EMI calculator will crunch the numbers and give you your monthly EMIs. Just repeat this process for various combinations of loan amount- tenure- interest rate to compare how your monthly payment changes with each set of terms. That is why, it is crucial to understand the implications thoroughly before taking a loan. A very useful tool that helps you with this is the online EMI calculator.
Of the many online tools that help you make the right financial decisions, the EMI calculator is perhaps the most useful. If you have a plan to take out two wheeler loan in Indore, the EMI calculator is one of the first tools you must learn to use because it helps you get a very clear picture of how your loan will impact you financially.