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Bike Loan EMI Calculator – Calculate amount for Two Wheeler Loan

Written by - Rudri Rawell

July 24, 2022 5 minutes


In a country like India, given the condition of our roads and need for immediate accessibility, lack of good public transport, two-wheelers have become the go-to solution for most Indians. India is considered to be among the top 5 markets in the two-wheeler segment. This industry also saw one of the highest impacts of the covid pandemic as sales of the industry giants in the country plummeted one after the either. However, the industry is slowly seeing an upswing, especially in the electric two-wheeler segment which is seen an overall growth of 132%. 

Although two-wheelers are definitely cheaper than four-wheelers, they are still out of reach for many Indians. Catering to this need, there are multiple lenders that provide easy bike loans at affordable interest rates for a short-term tenure ranging from 12 months to 5 years (depending on the lender). Borrowers have to repay this loan within the tenure through EMIs failing which they may have to pay a penalty or their vehicle stands hypothecated as per the agreement with the lender. 

For this purpose, it is important to understand the meaning and calculation of EMI. 

What is a bike loan EMI?

The loan taken for the purchase of any two-wheeler comes in the bike loan category. This also includes loans for the purchase of electronic vehicles. The loan for purchasing a two-wheeler has to be repaid within the tenure as per the agreed repayment schedule. This repayment is in the form of fixed monthly payments known as EMI (Equated Monthly Instalments). This EMI can be repaid through various options as per the convenience of the borrower. 

The three main components in the calculation of bike loan EMI are the loan amount required, the rate of interest, and the tenure of the loan. Using these three components the mathematical formula for calculating bike loan EMI is mentioned below.

EMI = EMI = P x r x {(1+r)^n/ [(1+r)^n-1]}

In the above formula, 

P = The loan amount given by the lender.

r = The prevailing rate of interest charged by the lender for the loan. An important point to remember is that this formula requires ‘r’ to be the per month rate. Therefore, it is calculated as r/12/100.

n = The tenure of the loan and is represented as the total number of months in the tenure (for example, tenure of 3 years is represented as 36 months in the above formula).

Let us consider an example to understand the calculation of bike loan EMI in a better manner. 

Mr. X purchased a bike by taking a loan of Rs. 80,000 from ABC bank at the rate of 10% per annum for a period of 3 years. The EMI calculation, in this case, is given below.

EMI = 80000 * 0.008333 * {(1+0.08333)^36 / [(1+0.008333)^36 – 1]}

EMI = Rs. Rs. 2.581

What is a bike loan EMI calculator?

Bike Loan EMI calculator is a very efficient tool that is available for the benefit of the borrowers on the website of all the lenders as well as other websites that aim at customer awareness. This tool also uses the three components mentioned above to calculate the EMI. The USP of the bike loan EMI calculator is that it reduces the efforts of the borrower and provides a 100% accurate calculation. This tool provides the EMI calculations within seconds of inputting the data and allows the users to compare competing loan options from different lenders. Additionally, the bike loan EMI calculator will also help in computing the total interest that is to be paid by the borrower on the loan. 

How to use the Finity bike loan EMI calculator?

The bike loan EMI calculator is available on FInity under the tab ‘Resources’ on the homepage of the website. This tool is available free of cost and can be used multiple times by the users to calculate their bike loan EMI by altering the data as per their needs. 

The steps to use the Finity bike loan EMI calculator are,

  1. Click on the resources tab on the homepage and select ‘Bike Loan EMI calculator’
  2. A new page will be displayed on the screen, where users will have to enter the required data i.e.,
    1. Loan amount
    2. Tenure of loan
    3. Rate of interest
  3. After the data is provided, the tool will immediately display the amount of EMI to be paid by the borrower over the tenure of the loan. 


The bike loan EMI calculators have become the first point of reference for the borrowers looking for a bike loan to purchase any two-wheeler. This tool helps in speeding up the process and assures accuracy at the same time without any charge. This makes it quite useful for every borrower to assure that they get the best loan at the lowest EMI that suits their needs


1. What are the advantages of the Finity bike loan EMI calculator?

The prime advantages of a bike loan EMI calculator are,:
a) It is free of cost
b) It can be used multiple times
c) Easy mode of comparing the available loan options.d)  Helps in calculating the interest cost of the loan.  

2. Can the bike loan EMI calculator be used to calculate the EMI of loan for purchasing an electric two-wheeler?

Yes, a bike loan EMI calculator can be used to calculate the EMI of loan for the purchase of any two-wheeler. 

3. Does the bike loan require the borrowers to make any downpayment?

The requirement of a downpayment for the purchase of a bike using a loan depends on the guidelines of the lender.

4. What is the maximum tenure for a bike loan?

*The maximum tenure for bike loans offered by most lenders is up to 5 years. 

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