How Is Interest Rate Calculated on a Bike Loan?

The bike loan EMI calculator is an essential tool available online for calculating the monthly instalment required to pay off the loan amount when purchasing a bike.

The EMI loan calculator takes the following input:-

  • The amount borrowed
  • The interest rate, which is charged on the principal amount
  • The period within which the loan is to be paid off

How EMI Calculated On A Bike Loan?


Before jumping on to interest rates, let’s take a look at the steps involved in calculating the EMI:

  • Choosing the principal loan amount
  • Choosing a suitable duration
  • Selecting the interest rate, which varies according to the choice of two-wheelers.
Additional Read: How To Get A Two Wheeler Loan At Best Interest Rates?

If you’re wondering how interest rate is calculated, then the answer is pretty simple. The interest rate is dependent on the overall income of the customer who avails it. Self-employed people are offered higher interest rates, whereas salaried ones are provided with lowered interest rates. The starting interest rates are pre-decided by the lenders and vary according to your financial details and loan requirements.

Apart from the steps involved, the interest loan calculation itself can be subjected to specific ways, these are:-

  • Simple Interest

It mainly applies to short-term loans, and the procedure involved is quite simple to deduce the loan calculation.

  • Amortizing Loans

Initially, a heavy sum is made to pay, but gradually on reaching the deadline, the amount decreases to less or null.

Additional Read: What Is The Processing Fee And Other Charges For A Bike Loan?

Bajaj Auto Finance- Your Ultimate Bike-Loan Destination


Two-wheelers have become an affordable and convenient mode of transportation due to low-interest bike loans. Bajaj Auto Finance, the auto finance division under one of the most diversified NBFCs- Bajaj Finance Limited, provides vehicle loans to their customers to purchase Bajaj bikes of their choice.

Bajaj Auto Finance offers attractive interest rates, with an additional processing fee is 1% onwards*. The maximum tenure is around three years but can be adjusted up to 5 years per the customer’s choice.

Moreover, they provide the bike EMI calculator, which is relatively easy to use. Once the input is provided, immediately, there is a reflection on the EMI calculation status. The calculation is undoubtedly accurate, and you can use this online bike EMI calculator anywhere and anytime. No login is required to make the calculation, and it is accessible on all devices.

Products Offered By Bajaj Auto


Some of the Bajaj bikes and KTM bikes are mentioned here, along with their on-road prices and approximate EMI amounts. The latter has been calculated using the general interest rates and tenure period offered by Bajaj Auto Finance as mentioned above.

Bajaj Bikes

Bikes On-Road Price EMI
Pulsar RS 200 ₹ 1,97,643* ₹ 18,640 p.m.
Pulsar NS 200 ₹ 1,72,138* ₹ 16,210 p.m.
Pulsar NS 160 1,46,149* 13,763 p.m.
Pulsar 220F 1,62,411* 15,294 p.m.
Pulsar 150 1,25,416* 11,811 p.m.

KTM Bikes

Bikes On-Road Price EMI
KTM Duke 125 ₹ 1,91,388* ₹ 18,023 p.m.
KTM RC 125 ₹ 2,04,880* 19,293 p.m.
KTM Duke 200 ₹ 2,30,579* 21,713 p.m.
KTM RC 200 ₹ 2,62,683* 24,736 p.m.
KTM Duke 250 ₹ 2,79,435* ₹ 26,314 p.m.



Bajaj Auto Finance provides convenient facilities to its customers- low-interest rates, low EMIs, and a flexible repayment period. They also extend hassle-free documentation, special offers, and multiple benefits to the customers. If you’re looking for financial aid to buy your dream bike, then Bajaj is the undisputed, best choice.

Apply for Loan Calculate Your EMI

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