How can I Reduce My Bike EMI?

Posted on Tuesday, May 16th, 2023 | By IndusInd Bank

Summary: Using a bike for your daily needs is essential, but paying hefty EMI amounts for your bike loan need not be. You can conveniently reduce your EMIs with better planning such as, applying for a loan amount you can afford, opting for a convenient tenure, prepaying your loan, or using an EMI calculator to determine your monthly outflow. Read more here.

As transportation plays a vital role in both work and daily life, owning a personal vehicle has become a necessity. While cars may be expensive, bikes are generally affordable to most. And with easy EMIs that many lenders offer you on two-wheeler loans, purchasing a bike is no longer a challenging task.

However, there may be times when the EMI might be too much for you, and you’d like to reduce it. Today, we tell you how you can lower your bike EMI without having to break a sweat! 

Steps to Reduce Your EMI for Your Bike Loan

1. Know How Much You Can Afford 

This might be a commonly covered step, but it can be the most important one. Because you need to pay a relatively significant amount to own your bike, knowing how much you need to spend can help. For instance, if you plan to buy a bike costing Rs 80,000, then you should determine the minimum and maximum loan amount you can afford.

This can tell you how much of a down payment you can make and what you can take as a loan. So if you choose to make a bigger down payment initially, you’ll need to apply for a lower loan amount and fetch much lesser bike loan interest rates, which will, in turn, reduce your EMI. 

2. Use an EMI Calculator

Before you take a bike loan, you can get a good understanding of how much you need to pay using an EMI calculator. For instance, you may want to choose between various lenders offering different amounts, tenures and interest rates. With an EMI calculator, you can see how much your bike loan EMI will change depending on the factors and pick the right loan depending on your affordability.

3. Opt for an Extended Repayment Schedule

A short-term bike loan might attract a higher EMI. Inversely, when your tenure is longer, you’ll be able to reduce your EMI substantially. However, you must also keep the bike loan interest rates in mind when opting for a longer term. They tend to increase when the tenure is more extended, even if the overall EMI you pay each month is less.

4. Consider Prepayment of the Loan

Specific lenders may offer the option of prepaying an existing bike loan after a period of time. When you have excess funds that you can spare, you can use that money to pay off a massive chunk of your loan. This will not only reduce the total amount of the outstanding principal but will, consequently, reduce your EMI too. 

5. Choose a Lender with an Existing Relationship

If you have a reliablet working relationship with your bank, this relationship can help you get loans easily too. For example, In the case of a bike loan, you can request your lender to see if you can get good bike loan interest rates, as you’ve been their regular customer for a long time. 

You can easily reduce your bike EMI with lesser interest rates and save more money. Making use of your existing relationships is a sure way to buy your bike without making any significant expenses.

Buying your next bike

With all these steps in mind, you can now be more confident in purchasing a bike. However, as two-wheeler loans are becoming more commonplace, you would still need a trustable source to approach. At IndusInd Bank, you can avail of bike loans that match your expectations. With attractive interest rates, generous tenures, and easy documentation processes, you can quickly get a loan to purchase your bike today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.