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# Planning to Buy a Bike? Calculate your EMI with Bike EMI Calculator

Personal Finance Calculator 23-11-2022 | 5 min read

Everyone is familiar with the concept of loans or EMI. When a product is purchased by taking a loan, or EMI, one needs to repay the same in instalments. Particular interest is also charged with it. So, while buying a two-wheeler on loan, one must calculate EMI. To do so, one can use the Two-Wheeler Loan Calculator. Many online calculators can be used these days. The borrower needs to fill in the details. The calculator will do the math for them. With this, they get a clear idea about the expense before making a purchase.

## Factors for bike loans

One’s liability every month depends on three things.

### Principal amount:

It is the total sum of money one needs to borrow. The larger the amount, the more EMI one needs to pay. One must try to finance as much as possible from their pocket. This keeps the EMI in check.

### Interest:

Besides repaying the original amount, one also needs to pay interest on it. The interest rate is the percentage that the bank charges on a loan. A higher interest rate means the loan cost increases. Try comparing company loans by using a Bike Loan EMI Calculator.

### Time:

This means the length of period one is trying to avail of the loan for. The longer the time one opts for, the higher the EMI will get. One should clear the dues fast if one wants to avoid paying a lot and one can find that out with the formula for the calculation of EMI. If anyone wants to do it on pen and paper, they can. However, using a Bike EMI Calculator is a lot simpler.

EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]

In the above formula:

P = Principal amount

R = interest/100

N = time in months

## Advantages of Two-Wheeler Loan Calculator

### Hassle-free and quick

The manual way of calculating the EMI is a lengthy process. It has a lot of steps and takes up too much time. It might also give wrong results if not done properly. Conversely, a calculator will yield results in a few seconds.

### Easy to operate

The interface of such calculators is easy to follow. The process of using it is also simple. One needs to put in the details, and it will do the math.

### Accuracy

While calculating it manually, one is always dubious about the results. A minor mistake in the calculation will give a bad result. Such risks can be avoided if one uses Bike Loan EMI Calculator.

### Know the value of EMI

By using these calculators, one gets to know the exact amount payable. Getting to know the amount will help them make a precise decision.

### Helps in selecting tenure

Selecting an ideal tenure can be tricky. By using a Bike Loan Calculator one can easily select the perfect tenure. They get to compare the periods and decide as per their needs and choice.

### The cost breakdown is provided

One will also get the breakdown of their expenses. They will get to know the charges required for processing fees and interest.

### Comparison

If someone has multiple options, then using a calculator is best. They know which loan provider is giving them the maximum value for money. Hence in return, they get to decide better.

### Negotiation

Once someone has a clear idea of their bike loan, they can negotiate it. The key factors are easily negotiable with the bank. They need to have well-established ground.

## Documents Required for the Loan

One needs to provide certain documents to take a loan or avail of EMI facilities. After knowing the details of their EMI using a Bike, or EMI Calculator, one needs to arrange the required documents. The documents that one needs are different for a salaried and self-employed person.

### Salaried Individual

• ID proof of any kind: PAN card, Aadhaar card, passport, voter’s card, etc.
• Proof of signature: One needs to provide signature proof. It will authorize the purchase of their bike.
• Income proof: salary slip and also the statement of the bank account.

### Self-employed person

• ID proof of any kind: PAN card, Aadhaar card, passport, voter’s card, etc.
• Proof of signature: One needs to provide signature proof. It will authorize the purchase of their bike.
• Income proof: Last two years’ income tax return, profit and loss statement, and business’s audited balance sheet.

One must keep these documents ready before availing of the bike loan. Besides using a Bike Loan EMI Calculator keeping the required documents handy will give one a smooth experience. This will ensure a faster process.

## Tax Benefits of Bike Loan

One is eligible for tax exemption on their bike loan. However, this can be claimed if the bike is used for business purposes. So, if someone is a salaried individual, they cannot avail of this facility. Self-employed persons can experience few tax benefits if they get the two-wheeler for business purposes.

• As a business expense, they can save interest: A tax deduction can be claimed. It can be claimed on the yearly interest payment of the bike loan. They can do so by including the amount in their business expense.
• Transportation cost: All fuel expenses on the bike can be applied as tax-free expenses.
• Depreciation Cost: Tax deduction can also be claimed on maintenance costs. The amount one spends on keeping their bike in proper condition is known as maintenance cost.

## Conclusion

So, from the above article, it is clear that if someone is taking a loan, they must use a Bike Loan Calculator. It will give them a clear idea of how much they must pay monthly and for how long. This hassle-free process will save one a lot of time and confusion. Two-Wheeler Loan Calculator has several benefits, as discussed. If someone is looking for a good personal loan option, they can check out Piramal Finance. They have nice blogs that can be read. One can also check out their different services and products.