Purchasing a vehicle without a loan is not financially viable for most people. As a result, many people turn to loans for convenient repayment of the vehicle. Since bikes are a highly mobile form of transportation, especially in India, a bike loan will help you borrow an amount of money based on the bike’s price. Subsequently, you will be repaying the money monthly, in the form of EMIs, along with interest. 

Before applying for a loan, one must consider who is the right lender for them. It would be best if you chose this based on affordability. To see what you can and cannot afford, a bike loan calculator is a great tool. With the help of an online EMI calculator, you can calculate the EMI of all kinds of loans based on the loan amount and tenure. Doing this before the application also gives you insight into which lenders are right for you. Hence, narrowing down the search for an apt financial institution to borrow from.

Formula for Calculating EMI

Experts have carefully crafted the EMI calculator to be as accurate as possible. The formula behind online calculators for EMI is as follows:

( P * I ) * ( 1 + I ) ^ N

[ ( 1 + I ) ^ N – 1 ]

P = Amount of Money borrowed.

I = Rate of Interest

N = Number of instalments

This is the algorithm behind online EMI calculators. When using the tool online, one does not need to apply this formula, and it is easy to use. All you need to do is enter the required details. To calculate the EMI online, you will have to enter: 

  • The amount of money you wish to borrow 
  • The interest rate
  • Number of instalments 

After entering this information, you will get a detailed outline of the EMI you will have to pay out each month for a specified time period. That said, it is important to remember that the actual EMI you will pay after your two-wheeler loan’s online approval might differ from the bike EMI calculator’s results.


All lenders have a few standard conditions for granting loans, and they have others that differ from organisation to organisation. These eligibility criteria are set in place to analyse the creditworthiness and repayment capacity of the borrower. 

The actual down payment for the bike depends on many factors, such as:

  • Type of two-wheeler 
  • Monthly salary
  • Credit score (ideally a credit score of 750 and above) 

Before applying for the loan, you must cross-check the eligibility criteria and discuss the terms with your lender first. If you are thinking about which scheme to commit to, you must access the website for the lender and make sure you fit the criteria. 

Keeping all the documents handy is also important, apart from checking whether you are eligible to apply for a bike loan. You can check the lender’s website for information on the same. A thorough background check helps avoid a poor reflection on your credit score and a situation where your loan might get rejected. 

With the digitisation of loan taking, it has become easier for potential borrowers to access financing opportunities. Evaluating the points mentioned above, the importance of calculating your EMI before an application, ensuring proper documentation, and fitting the eligibility criteria is evident.

Many loan providers today offer instant approval and disbursal of loans. However, you can only avail of these benefits if you are eligible and apply online. Therefore, calculating your eligibility online alongside your interest can help you determine which loan is ideal for your needs.