Two wheeler loan guide with EMI calculator for bike loan

The Indian bike industry is one of the largest two-wheeler markets in the whole world. It is holding more than 40% of total global sales. But buying a new bike can seem challenging to general people, that’s why there are bike loans available for everyone with a source of income. Bike loans offer 10,000 rupees to 10,00,000 rupees. But before choosing a bike loan, it is always recommended to calculate the monthly installments payable depending on the interest rate, using an EMI calculator for bike loan. The interest rate applied on the EMI can be either a flat rate or a reducing balance rate depending on the loan institute.

Choose a bike that fits your needs

There are different models of bikes for everyone. The rider should always keep in mind the following 3 factors before fixating on a particular model of bike.

Engine size

The engine is the heart of a bike and the size of the engine influences the whole performance of the bike.

A large engine is powerful but not fuel efficient. Bikes with large engines are mainly helpful when cruising out on the highways. But on the other hand bikes with smaller engines can be used to ride in cityscapes as they are high “fuel efficient” but not very good at quick acceleration.

Overall bike theme

Every bike has its theme. Choose a bike with a theme that delivers your desired mileage, headlights, tire size, color, and other customs. Some of the popular themes are sports, cruisers, off-road, standard, etc.

Resale value

Older bike models can always be superseded by newer models, So if you are certain that a few years later, you will sell the bike for a newer one. Then first you need to assess the resale value of the bike. If it turns out that the bike will lose value over time due to its depreciation and market price decrease, then go for a bike with better resale value.

What is a bike loan EMI calculator?

So you finally chose the bike that you want to buy. Now all you need to do is file for a bike loan! But wait before you choose any loan agencies to avail of the loan money. You need to make a plan about your repayment strategies and for that, you need an EMI calculator for bike loan. An EMI calculator helps you calculate the equated monthly installments depending on the loan amount, interest rate, and repayment period. A bike loan EMI depends on the two types of interest methods, if the interest is calculated using the flat method then every year a fixed rate of interest shall be charged on the total loan amount availed. But if the interest is charged using the reducing balance method, then on each paid installment, only the interest will be charged on the balance amount left.

Advantages of bike loan

A bike loan repayment is easy as it provides a tenure of up to 24 months to any Indian nationals over 18 years of age having a salaried job or a profession. This loan only requires basic documents such as KYC documents proving the identity and residence of the borrower, Income proof, and a passport-size photo of the borrower. Buying a bike on loan may take some time to repay but the borrower becomes the legal owner of the bike as soon as he pays the down payment (primary installment). Also, bike loans only take 24 to 48 hours to get approved depending on the borrower’s submitted documents. Bikes loans do have a high LTV (Loan To Value) percentage (95%) on hero motocorp selected bikes. For that, the hero glamour down payment can be as low as 5% of the total value.


Bikes provide freedom from public transportation. Two-wheelers such as scooters do provide a secure mode of commute for girls, women, and also men. Buying a bike, whether it’s new or old, it is always good to check out the financing procedure before deciding anything. Knowing the interest rate and calculating using the EMI calculator for bike loan beforehand will allow the borrower to chart their monthly budgets accordingly. Also, it may help the borrower become conscious of any extra monthly expenses.

Scarlett Watson

I am a professional writer and blogger. I’m researching and writing about innovation, Health, technology, business, and the latest digital marketing trends.

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