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Two-Wheeler Loan EMI Calculator by Reducing Balance
EMI
Reducing Balance
Flat Rate
Balloon Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Copy
Share
EMI
2100
Interest
26011
Principal
100000
Total
126011
26 K
5
Year
100,000
21 K
Year
Original
Reduced
𝒊
2100
will be
EMI
for
100000
(100 K)
Loan Amount
for
5
Year
Loan Tenure
at
9.50%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(1 K)
(2 K)
(3 K)
(4 K)
(5 K)
(6 K)
(7 K)
(8 K)
(9 K)
(10 K)
in
0
1
2
3
4
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
5 year
26011
Reduced
4 year
21994
Saved
1 year
4017
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
36 K
27 K
18 K
9 K
0
-
-
-
-
-
2024
2026
2028
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Two-Wheeler Loan EMI by Reducing Balance
A Two-Wheeler Loan EMI by Reducing Balance calculates interest on the outstanding principal amount, which decreases as you make repayments. This results in gradually reducing EMIs over time, as interest is charged only on the remaining balance. This method generally results in lower overall interest costs compared to flat rate loans, as the interest burden decreases with the reducing principal. Calculate your two-wheeler loan EMI with our Two-Wheeler Loan EMI Calculator by Reducing Balance. Get detailed breakdowns of monthly payments, interest, and principal to help you plan your loan repayments and ride home your new bike or scooter.
Calculate Two-Wheeler Loan EMI by Reducing Balance
Enter loan details like loan amount, interest rate, tenure, and choose months or years to calculate two-wheeler loan EMI by reducing balance.
Click Calculate to view your initial breakdown and calculate two-wheeler loan EMI by reducing balance based on your inputs.
Customize payment options with three inputs to help you calculate your two-wheeler loan EMI by reducing balance effectively.
Select extra EMIs per year to reduce your two-wheeler loan EMI tenure.
Increase EMIs by a percentage to manage your two-wheeler loan EMI more efficiently.
Select a lump sum payment in a specific year to lower your two-wheeler loan EMI interest.
Adjust inputs as needed and click Recalculate to dynamically update your tenure and interest for your two-wheeler loan EMI.
Reducing Balance EMI formula
To calculate Two-Wheeler Loan EMI, use the Reducing Balance EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E
M
I
=
P
×
r
×
(
1
+
r
)
n
(
1
+
r
)
n
-
1
EMI
= Equated Monthly Installments
P
= Principal loan amount
r
= Monthly interest rate
n
= Number of monthly installments
Eligibility Criteria for Two-Wheeler Loan EMI by Reducing Balance
Age Requirement:
Applicants must be at least 21 years old and not older than 60 at the end of the two wheeler loan EMI tenure.
Income Criteria:
A stable source of income, with minimum salary requirements typically around INR 10,000 per month for salaried individuals and INR 50,000 annually for self-employed individuals seeking a two-wheeler loan EMI by reducing balance.
Employment Status:
Salaried individuals should have at least one year of work experience with six months in the current job; self-employed individuals should have a stable business for a minimum of one year to qualify for two wheeler loan EMI.
Credit Score:
A good credit score, usually above 650, is preferred to ensure loan approval and better interest rates for a two wheeler loan EMI.
Two-Wheeler Loan EMI Calculator by Reducing Balance FAQ
How does Reducing Balance EMI differ from Flat Rate EMI?
Reducing balance EMI charges interest on the decreasing principal, leading to gradually lower payments and lower total interest. Flat Rate EMI charges interest on the full principal throughout the term, resulting in fixed payments and generally higher total interest costs.
What are the advantages of a Two-Wheeler Loan EMI by Reducing Balance?
Two-wheeler loan EMI by reducing balance EMI results in lower overall interest costs, as interest is recalculated on the decreasing principal balance. Borrowers may pay off their loans faster and benefit from a transparent amortization schedule that shows how each payment reduces both principal and interest.
What are the disadvantages of a Two-Wheeler Loan EMI by Reducing Balance?
Two-wheeler loan EMI by reducing balance EMI may have slightly higher initial payments compared to flat rate EMIs, as interest is calculated on the original loan amount. While it offers cost savings, the method is more complex, requiring borrowers to understand how reducing interest rates affect their repayments.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
26011
1 Extra EMI/ year
5 year
▶ 0 year
23878
▶ 2133
2 Extra EMI/ year
5 year
▶ 0 year
22147
▶ 3864
3 Extra EMI/ year
4 year
▶ 1 year
20755
▶ 5256
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
26011
Increase EMI by 1%
5 year
▶ 0 year
25627
▶ 384
Increase EMI by 3%
5 year
▶ 0 year
24926
▶ 1085
Increase EMI by 5%
5 year
▶ 0 year
24304
▶ 1707
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
26011
Pay 10% in 2nd year
5 year
▶ 0 year
23000
▶ 3011
Pay 20% in 3rd year
5 year
▶ 0 year
22791
▶ 3220
Pay 30% in 4th year
4 year
▶ 1 year
24761
▶ 1250
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
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