Bike Loan EMI Calculator
Loan Amount
Tenure (Years)
Interest Rate (P.A)
Two Wheeler Loan EMI Calculator - An Online Tool

In the Indian market, bikes range from commuter ones to the higher-end sports models. Regardless of the two-wheeler you choose to purchase, financing it from out of your pocket can sometimes be difficult without availing a bike loan.
However, the first thing that comes to mind when thinking about availing such a loan is the repayment liability associated with it.
Availing a bike loan without understanding your EMI payments against it can be damaging to your financial security in the long run.
Therefore, you must utilise an online bike EMI calculator beforehand to assess how much you would need to pay every month to service this loan.
If you are in search of one such reliable calculator online, we, at Digit, have made one available right on our website! But, first, here is all you need to know about bike loan EMI calculator.
Table of Contents
What is Bike Loan EMI Calculator?

What is Bike Loan EMI Calculator?
When you avail a loan to purchase bikes or scooters, you need to repay the same through equated monthly instalments or EMIs. The exact monthly liabilities from the loan depend on three major factors.
A bike loan EMI calculator considers these three factors to determine just how much you would need to bear as EMI for a particular bike loan. These tools are generally available online, with free and unlimited access for all.
As a borrower, you need to enter the necessary information into this online tool. After doing so, the calculator will display your instalment amounts, along with other relevant data, including total interest payable and the amortisation schedule.
Therefore, with a bike loan calculator, you can form a good idea about your future EMIs even before applying for the loan.
Components of Bike Loan and Bike Loan EMI
Before you can get down to the calculation part of your bike loan EMIs, you should first understand the three major factors that determine your liabilities every month. These are the following:
What is the Formula to Calculate Bike Loan EMI?
If you want to avoid using the bike loan EMI calculator and determine your EMI manually, you can do so with the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Wherein,
● P = Loan principal
● R = Rate of interest/100
● N = Loan tenure in months
To illustrate, let us consider the following example:
To purchase a sports bike, you avail a bike loan of Rs.10 lakh at an interest rate of 12%. You opt for a tenure of 5 years for repayment of the amount along with interest.
Now using the formula, we get
EMI = Rs.[1000000 x 0.12 x (1+0.12)^60]/[(1+0.12)^60-1]
EMI = Rs.22,244.45
As you can see, manual calculations can take a while. Moreover, due to the intricacies, you may end up making a mistake while calculating your bike loan EMIs.
A bike loan EMI calculator is just the right tool to eliminate the chances of errors in the calculation.
How else does a bike loan calculator help you?
Benefits of Using Bike Loan EMI Calculator
Using the complicated formula that banks and NBFCs follow to determine your EMIs and implementing it to know your EMIs can be a cumbersome task.
While manual calculations are possible, using the calculator tool instead is the safer and more convenient option for the following reasons:
How Does Bike Loan EMI Calculator help in planning and purchase?
A bike loan calculator is instrumental while planning your repayment and financial future during the loan tenure. Here are some aspects that the tool helps you gauge:
What is the Bike Loan Amortisation Schedule?

What is the Bike Loan Amortisation Schedule?
In case of a bike loan, as stated previously, borrowers repay using EMIs. Although the EMI amount remains constant throughout the loan tenure, the components of these EMIs are subject to change.
Generally, EMI consists of a certain ratio of principal to loan interest. This ratio keeps changing with each passing month.
During the onset of the loan repayment, for example, EMIs primarily consist of the interest component, while the principal component is minimal.
As you reach the end of the repayment period, your EMIs would consist mainly of the principal portion, with almost minimal interest.
The complete breakdown of the interest and principal portions in your every month’s EMI is represented using a table.
This is known as the amortisation table or schedule. It can be extremely useful, especially when you decide to prepay or foreclose the bike loan in question.
Documents Required to avail a Bike Loan For Salaried Professionals
Now that you know everything about 2 wheeler loan calculators, here is some information regarding the documentation necessary when availing a bike loan from reputed lenders in India. Keep in mind that self-employed and salaried individuals need to furnish different documents.
Identity Proof
Aadhaar card, Voter ID, passport, driving license, PAN card, etc.
Address Proof
Aadhaar card, passport, driving license, Voter ID, utility bills, etc.
Signature Proof
You need to provide a proof of your signature to the lender, as it will authorise your purchase of the bike in question at the dealership.
Income Proof
Salary slips and bank account statement for a specified number of preceding months.
Documents Required to avail a Bike Loan For Self Employed
Identity Proof
Aadhaar card, driving license, PAN card, Voter ID, passport, etc.
Address Proof
Aadhaar card, Voter ID, driving license, passport, utility (electricity, water and gas) bills, etc.
Income Proof
Audited balance sheet of the business, profit & loss statement and income tax returns for the previous two years.
Signature Proof
A proof of your signature that denotes you as the buyer of the bike in question at the dealership.
Bike Loan Tax Benefits

Bike Loan Tax Benefits
If you are currently paying off your bike loan dues, you should know that you may be eligible for tax exemptions on the same.
However, you can only claim this benefit if the two-wheeler in question is operated for business purposes only.
This also means that salaried professionals cannot claim any tax deductions for their bike loans.
If you are a self-employed individual availing a loan to buy a bike for your business, you can enjoy three types of tax benefits. These are as follows:
- Save Interest as a Business Expense - You can claim a tax deduction on your bike loan’s yearly interest payments by including this amount under your business expenses.
- Depreciation Cost - a portion of the sum you spend to maintain your bike in perfect condition can also be claimed as tax deductions
- Transportation Cost - All your fuel expenses on the two-wheeler can be claimed as tax-free expenses in any given year.
Keep in mind that if the government finds any discrepancies regarding the usage of your claimed business two-wheeler, your tax deductions from the same may be revoked.
With the above information on bike loan EMI calculation and such, you can easily proceed to avail a loan to purchase your dream two-wheeler without reservations!
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