Personal Loan

How to calculate Two-Wheeler Loan EMI?


One of the best ways to manage finances when you fall short of funds is getting a bike loan or two-wheeler loan. It is one of the most popular financing options nowadays to buy a dream bike or any other two-wheeler of your choice. The two-wheeler loan options are available at an affordable interest rate for a tenure range from 1 to 5 years.  You can use a 100% loan to buy a bike or two-wheeler. It offers flexible repayment tenure options. You can experiment with different combinations of the principal amount and tenure with the two-wheeler loan EMI calculator. The calculator provides an opportunity to change the tenure and loan amount accordingly. You can use this calculator as much as you want.

The Two-Wheeler Loan Eligibility

  • The minimum age to get a two-wheeler loan is 18 years, and the maximum is 65 years.
  • Must have a stable job
  • Must be living at the same address for at least a year
  • Must have a good credit score of 750 or above.
  • Must have a valid KYC document.

 The Documents Required to Get a Two-Wheeler or Bike Loan

  • Identity Proof– PAN Card, Aadhaar Card, Driving License, or Voter ID card
  • Address Proof– Electricity Bill, property documents, Latest Phone Bill or water bill

Additional Documents are required for self-employed and Salaried


  • Offer Letter
  • Last two months’ salary slips
  • The latest six months’ bank statement record and ITR returns


  • ITR filing of the last three years
  • TDS certificate
  • Details of the sales tax
  • Company details

Steps to Calculate Two-Wheeler Loan EMI

The two-wheeler loan EMI calculator is a must-use financial tool when planning to apply for a two-wheeler loan. This tool helps you choose the right loan offer, including the interest rate and tenure. The two-wheeler loan EMI calculator in 3 minutes shares with you the monthly EMIs you will have to pay.

But to make the best use of the 2 wheeler loan EMI calculator, you must be aware of its main components.

Principal Amount- The amount of money you are willing to apply for, from an NBFC or bank. If your principal amount is higher, automatically, the interest incurred will also be higher. So, always borrow what you can repay quickly.

Interest rate- Apart from the Principal amount, another factor borrower needs to check is the interest rate. It is the rate at which your financial institution offers you a two-wheeler loan. The higher the rate of interest, the higher the loan cost. A borrower has no control over the interest rate.

Tenure– It is the loan repayment tenure. As mentioned above, the loan’s maximum term ranges from 1 to 5 years. You can choose the tenure as per your affordability. But always keep one thing in mind, the higher the tenure chosen, the higher will be the interest rate.

The formula for a Two-wheeler loan

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


  • P = Loan principal
  • R = Rate of interest/100
  • N = Loan tenure in months

Suppose you are planning to purchase a bike for Rs 10 Lakh on a 100% loan at a rate of 12%. You have

EMI = Rs. [1000000 x 0.12 x (1+0.12) ^60]/ [(1+0.12) ^60-1]

EMI = Rs.22,244.45

But overall, calculating manual EMI will be a time-consuming process. You may end up making errors too. A bike loan EMI calculator is just the right tool to minimize the chances of error and result in the wrong loan offer.

How Does an Online Two-Wheeler Loan EMI Calculator Work?

It’s the best way to plan your two-wheeler loan EMIs. The bike loan EMI calculator works only for three factors: principal amount, interest rate, and tenure. Once you put the required information, the two-wheeler loan EMI will display your instalment amount, which you need to pay monthly, along amortization schedule, and interest payable. Saves both time and effort for the borrower.

Steps to use

Log in to the lender’s website and click on the two-wheeler loan EMI calculator. Enter the interest rate, loan amount, and tenure. Once all the details are filled in, click on submit. The two-wheeler loan EMI calculator will automatically display the monthly EMI amount.

Benefits of Two-Wheeler Loan EMI Calculator

Get to know your EMI Value

The first and foremost benefit of the two-wheeler loan EMI calculator is planning your monthly EMIs; you must pay the chosen loan amount value accurately and quickly.

Helps in selecting the suitable tenure

After deciding on the EMI value, you can also select the suitable tenure with the help of an EMI calculator. The term of a two-wheeler loan ranges from 1 to 5 years. You can try various assignments in the EMI calculator and choose the one that fits well with your financial goals.

Loan Comparison

The 2 wheeler loan EMI calculator works well for loan comparisons. You can make the cost comparisons of loan offers available to you and choose the best loan offer and the lender.

Cost Break up

The two-wheeler loan EMI calculator not only shares the monthly EMIs, but also gives you the detailed break-up cost of your loans like interest rate, processing fee, and other charges. Here you get the exact loan distribution, which will be the principal amount, and how much will be the interest amount.

Minimizes the Default Chances

Through the Two-wheeler loan EMI calculator, a borrower is aware of advance-only monthly EMIs, and accordingly, the borrower can budget finances. This tool saves a borrower from paying high-interest rates. When you plan your finances well before applying for a loan, the chances of making a loan default are also gets minimized.

Bottom line

You can access the amortization table using the two wheeler loan EMI calculator. It shares the details regarding the exact loan amount and interest that will be incurred on the loan amount. You will be able to see the bifurcations of your loan payment. After understanding all the loan aspects, it becomes easier to plan two-wheeler loan repayment strategies and manage liabilities smoothly.