Top 5 Ways To Calculate Two Wheeler Loan

Are you looking to purchase your dream bike but unsure about arranging funds? Keep your worries aside and utilise easy two-wheeler loans to own your dream bike.

A two-wheeler loan is an easy financing option to fund your two-wheeler purchase with small equated monthly installments (EMIs).

  • You can apply online with minimal documentation. Generally, a lender looks for your KYC documents and income proof. 
  • It is an unsecured loan. The loan is available without pledging your valuable assets as collateral. 
  • If you select a lender based on thorough research, you can get as high as up to 100% of the vehicle’s on-road price. 
  • Affordable interest rates start at 0.99% with leading lending institutions in India.

It has never been this easy to buy a two-wheeler. 

5 Ways/Factors To Calculate Two-wheeler Loans

Here are the five ways/factors you should know that are considered to calculate your two-wheeler loan.  

1. Know the LTV ratio calculation 

Loan to value (LTV) for a two-wheeler loan is the maximum loan amount that a lender considers offering you as a percentage of the vehicle’s value on the road. If you are eligible, you can enjoy up to 100% LTV. You can approach well-established lending institutions offering a high LTV. The LTV ratio calculation for a two-wheeler loan depends on various factors, including the choice of the two-wheeler. You will not surely want to indulge in a situation where your desired two wheeler’s value is Rs. one lakh and the lending institution offers a LTV of Rs 60,000. Therefore, select the loan provider that disburses an appropriate loan amount to fulfil your needs.

2. Know Annual Percentage Rate (APR) 

Using the APR, you can compare the interest rates of different lending institutions and decide on borrowings efficiently. APR is a simple percentage that reflects the annual cost of the borrowings that include the applied interest rate and any yearly fees associated with the transaction and the privilege of borrowing. 

3. Evaluate Your Credit History

Checking your credit score is a healthy habit. If you have a good credit history and score, your loan can be calculated at a lower interest rate. You can find lending institutions providing two-wheeler loans without having a strong credit history. Such a loan helps to improve your credit score if you keep paying your EMIs on time. 

4. Know Additional Costs of Loan

There are some charges applied to two-wheeler loans. A processing fee is charged at the time of application as a percentage of the loan amount. You should check for foreclosure charges. It is a nominal fee that adds to your two-wheeler loan cost.

5. Approach Muthoot Capital 

Muthoot capital is a name with goodwill, providing two-wheeler loans to apply for scooters and bikes online at an affordable rate. You can approach it to know a special loan scheme for you and understand your two-wheeler loan. These are low-interest rate loans with no hidden charges. You can use their loan calculator to know your EMIs. And to add to their benefits, Muthoot Capital does not look at your credit score when approving the loan.

Utilise Two Wheeler Loan Calculator

A two-wheeler loan EMI calculator is a ready-to-use online calculator. You can calculate your EMI based on your input. You need to enter: 

  • Loan amount
  • Interest Rate 
  • Loan Tenure

Within seconds, it will show you the monthly EMI calculation. You can check values for the different loan and tenures amounts as many times as you need to. Once you get an EMI amount you are comfortable with, you can apply online for a two-wheeler loan.

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