Dreaming of getting your dream bike with a loan? This video can help you better understand two-wheeler loan EMIs.
First, we’ll explain what an EMI is and discuss the main factors that affect EMIs. These include the loan amount (principal), interest rate, and loan tenure (duration). You’ll also discover that most banks use the reducing balance method to calculate EMIs. This means that each payment reduces your outstanding balance, which in turn lowers the interest for the next month.
Then, you’ll look at how EMI is calculated using a formula. It considers your principal, interest rate, and tenure to determine a fixed monthly payment. This allows you to repay the loan fully by the end of the tenure. You’ll also understand the role of interest rates. Higher interest rates could lead to higher EMIs and a larger total repayment.
Next, the video will walk you through the process of using an online EMI calculator for your bike loan. Here, you can enter your loan details, i.e., the principal, rate, and tenure, to get an estimate of your EMI, total interest, and total amount payable.
So, plan your finances wisely and bring home your dream bike! Stay tuned to Academy for more insights into two-wheeler loans!
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