India will soon become a developed nation and the driving force behind India’s success will be its young population. More than sixty-five per cent of India’s population is below the age of thirty-five.
Although India is teeming with young adults, one would still see a lot of bikes on India roads than cars. To put things into perspective, more than fifty-four per cent of Indian traffic consists of motorcycles.
Does the above information indicate that Indians don’t have money to spend?
Not at all!
The overall spending capabilities of young Indians have improved since India became a global economic powerhouse. However, young adults in India prefer to spend their money wisely. In simple words, the youth of India tend to purchase things that would not become a financial burden on them.
Speaking of financial burdens, a car is a liability, to be honest. The ex-showroom price, taxes, registration costs, insurance costs, maintenance costs and fuel surcharges of a car are astronomical.
On the flip side, a bike doubles up as a vehicle for daily commutes. A bike also works well as a vehicle for recreational rides like a bike trip. The best part is that, compared to a car, a bike will not be financially burdening for the owner. Bikes are fuel efficient and their running and maintenance costs are nominal. But what about the pricing?
Well, sure the price of a bike is always lower than a car unless it is a superbike. But in recent years, especially after the COVID-19 restrictions were lifted, bike prices have risen sharply. And the prices are not coming down. Bike manufacturers have incurred huge losses during the lockdown days and they are fighting to restore the glory of their respective brands.
Does this mean that the demand for motorcycles in India has waned in light of the soaring ex-showroom prices?
Not at all!
Despite the incessant price hikes, the national sales graphs of motorcycles from all categories in India are at an all-time high.
How is that possible?
The answer is the easy availability of motorcycle loans from banks and Non-Banking Financial Companies.
Why finance a motorcycle and not buy the vehicle with idle cash?
People choose to apply for a bike loan as financing a bike allows one to enjoy an array of benefits. Some of the most compelling benefits of bike finance are mentioned below.
- Motorcycle loans are approved within a few hours. One can simply head over to a bike dealership and apply for a loan on-site. Most bike dealers have strong relationships with leading lenders. It means that one would not even have to apply for a loan before they visit the bike dealership.
- Lenders offering two-wheeler loans offer low interest rates, custom tenures and even convenient debt repayment options to borrowers.
- Lenders these days don’t penalize their customers when the latter chooses to pay their debt before the tenure is up.
- Buying a bike through finance allows one to keep their savings and related emergency funds intact. Bike loans act as a financial cushion that borrowers can fall back on to cover hefty expenses like purchasing bikes.
- Applying for a bike loan also allows one to create a stellar credit history. Furthermore, people can boost their credit scores by simply paying the EMIs for their bike loans on time.
How can one calculate the tentative EMI for a bike loan?
One can check the tentative EMIs for a bike loan scheme they fancy by using a two-wheeler loan EMI calculator.
EMI calculators are free-to-use online tools that one can find on the official websites of lenders and leading bike portals. One can also use these tools to select the best downpayment + tenure combination. By carefully selecting the downpayment and tenure of a loan, one can get low interest rates on the debt incurred. Furthermore, one can also alter the EMI for their loan by increasing the downpayment and reducing the tenure for the loan.
All of the above benefits can be availed when one uses an EMI calculator.
How do EMI calculators work?
EMI calculators are designed to work using the mathematical formula P x R x [(1 + R)N/((1 + R)N – 1]
The variables used in the formula above stand for the following.
- (P) is principal
- (R) is rate of interest and
- (N) is the tenure of the loan scheme.
One can also use the formula to calculate the EMI of a bike loan offline using a pen and paper!
To learn more about EMI calculators, please consult a professional financial advisor.