Best‌ ‌Way‌ ‌to‌ ‌Buy‌ ‌a‌ ‌Bike‌ ‌on‌ ‌EMI‌

The festive season is here, and you would like to indulge in some self-pampering or buy gifts for your loved ones? The latest and amazing bike can be a perfect gift! So, how do you fit this purchase within your budget?

You want a new bike, but your bank refuses to give you a loan. Or maybe you just don’t have a bank account. Maybe you’re a student and you aren’t allowed to have a loan.

And then, one day, someone told me about EMI or Equated Monthly Instalments. You know what EMI is, right? It’s when you buy something expensive on credit and pay for it in small monthly installments spread across several years. So if it’s an electronic item with a warranty of three years, the company will let you buy it in three-yearly installments.

Two wheelers are now available to buy on EMI at many online and offline stores. When you buy two wheeler on EMI, it allows you to pledge a convenient amount monthly/weekly/daily without overwhelming your budget.

How does it work?

Buying 2 wheeler without making significant commitments works in two ways:

One where you buy the product and then pay on EMI

It is what it sounds like, buy bike on EMI. This is simple – when buying two wheeler online, go for the EMI option.You can opt for flexible plans ranging between 3 to 24 months.

One where you join a saving scheme with a store

Think of it as a monthly investment plan. Here you will have to keep depositing a certain fixed amount every month with your preferred autoshop. The programs are generally for a minimum of 12 months.

Benefits of buying Bike on EMI

No big commitment
Who doesn’t want to possess brand new two wheeler without making it a huge spend at one go? Here’s the good news – buying bike with the access of checking two wheeler loan EMI calculator is convenient and does not break your monthly budget.

Flexible EMI periods
Several two wheeler brands and stores offer flexible tenures according to your affordability. The tenures start from 2 months and go up to a year. Some retailers, such as Muthoot Capital, also have daily and weekly options available when applying for bike loan online.

Fixed gold value
As you must know, the branded and luxury bike’s value fluctuates each day. And as an appreciating asset, the value is likely to go up rather than down. In addition, when you buy bike on loan, the value of the day it is purchased gets fixed, thus protecting you from price inflation.

How to avail of the Bike on EMI plans?

To avail of the EMI plans, you need to produce your PAN card, proof of address, and income. If these two criteria are fulfilled, verification will be done, and you will be approved to buy the best bike loan. For those who don’t know how to buy a bike on EMI, we have made a list of 9 steps as follows:

  • Calculate the bike price
  • Calculate the EMI amount
  • Calculate the interest amount for 1 year
  • Calculate the total interest to be paid for 10 years
  • Calculate the total interest to be paid for 5 years
  • Calculate the monthly instalment for 5 year EMIs
  • Check whether you can afford it or not by comparing the monthly instalments with your current expenses – that is, how much you can save per month after buying a new bike?
  • Compare the prices of different models available in your budget range and decide which one suits your requirements best.
  • Go to a bank and apply for a loan without guarantor to buy your dream bike

Nowadays most people prefer to buy goods with easy installment plans, which are mostly available through banks or through the Internet. Banks are most preferred because they are far better at it than the Internet.
The advantage of this system is that you can own a lot of things without spending much money.

Best Method to Calculate EMI on Used Car Loan

What is a Used Car Loan?

A used car loan is a loan offered by banks and NBFCs for pre-owned automobiles. Pre-owned products are those owned previously but now are in the market again to find a new owner. The most important benefit of buying a pre-owned car is buying the car of your dreams without hurting your budget.

What are the Factors that May Affect the Interest Rate?

The interest rate is assigned to a loan based on the risk associated with it. If the financiers identify that the loan amount is at a high risk of not getting repaid, the interest rate shoots up. Many factors may attack the interest rate on your used car loan. To secure the lowest used car loan interest rate, we suggest you keep the following factors in mind:

Source of income: A stable monthly source of income is an indicator of the loan amount coming back in full to the lender. If you can prove that you have a stable and regular inflow of money, chances are you will readily qualify for the loan and may also be able to secure a lower interest rate. For used car loans, Muthoot Capotal lists that a company employed borrower should have a minimum net salary of Rs 15,000/- per month while a self-employed borrower should have a net annual profit of Rs 1,50,000/-.

Credit Score: Having a good credit score almost guarantees that you will quickly get approved for a loan and that too on a lower interest rate. A credit score is an indicator of how well you manage your debt. A credit score of 750 and above will speed up the loan approval and disbursement process. To maintain a good credit score, ensure that your credit card scores and loan EMIs are paid on time.

Availability of all documents: To secure a loan, the lender required a few document proofs to verify and ascertain the risk associated. You must produce all the required proof to prove that money being lent to you is low risk. Failing to do so drives up the interest rate. The documents you may need to submit include proof of identity, income, proof of address, etc.

Down Payment: To get a lower interest rate, quicker approvals and low EMIs, Muthoot Capital suggests making a 20% down payment of the Insurance Declared Value. Making a down payment makes the EMI much more manageable as you have to repay a lower loan amount.

What is EMI, and How to Calculate it?

EMI is short for Equated Monthly Installment. It is the minimum fixed amount that you need to monthly pay the lender in the process of repaying the loan. EMIs are part payments made to repay the loan you have taken. EMIs take into consideration both the principal amount and the interest incurred.

To calculate your interest with a uased car loan EMI calculator, you need to know the principal amount, interest rate, and the period for which the loan is being taken. You will then need to divide the total loan repayment amount by the number of months in the loan period.

Let’s illustrate this will a simple example:

  • Loan amount(P): Rs 2,00,000/
  • Interest rate (R): 10%
  • Time period(T): 5 years (60 months)
  • Total repayment amount = Loan amount + interest incurred (P*R*T/100) = Rs 3,00,000
  • (the T here is to be put in years)

  • EMI = Total repayment amount/time period in months = Rs 5000
  • To sum up, if you take a 2 Lakh rupees loan on an interest rate of 10% with a repayment time of 5 years, you will need to pay Rs 5000 in monthly instalments. However, if all the calculations get too overwhelming, you can use the used car loan EMI calculator offered by Muthoot Capital on our website.

    Applying for a two-wheeler loan? Here’s what to look out for!

    Are you done with using public transportation and now want to switch to a more convenient option that saves time? Then buying a two-wheeler is the best bet for you – no hassle of finding parking space (or even driving space on a cluttered road) anymore. The good news is, owning a two-wheeler has become much easier today, thanks to two-wheeler loans from financial institutions. So today, let’s talk about how to buy a bike on EMI and drive your way right out of the traffic!

    While two-wheeler loans and several other financing schemes brings you closer to your dream of owning a vehicle, it is also essential to know a few things beforehand. Therefore, we bring to you the top 5 things you should keep in mind when applying for a two-wheeler loan:

    Which one are you buying?

    The market is brimming with different types of two-wheelers. While some boast of mileage, others have a lightweight design and style. So, when applying for a loan, you should know which one you want to buy. This will help you find out the on-road price of the two-wheeler, thus telling the exact loan amount you would need.

    How much do you need to borrow?

    If you have been planning to buy a two-wheeler for a long time, chances are you would be saving up for it. However, you might be falling short of a small amount and have been looking at loan options. Financial institutions such as Muthoot Capital fund 100% of the on-road price of the two-wheeler.

    Your eligibility for the loan

    Similar to any other loans, two-wheeler loans are also approved when the applicant meets the eligibility criteria. This may include documentation related to proof of identity, age, income, and proof of address. To buy bike on EMI, you should be at least 18 years of age. In addition, Muthoot Capital lays down several other eligibility criteria on its website.

    You credit score

    A good credit score is synonymous with getting a loan quickly. Your credit score showcases how well you manage your debt. The credit score goes up when you make payments of your loan or credit cards on time and goes down when you do not. A credit score of 750 is ideal to be able to get a loan sanctioned. Maintaining a good credit score may also make you eligible for loans on lower interest rates. If you have a low credit score, you might need to work on that before making a loan application.

    Best deal

    Interest rates are a component of loans that drive up the final payback. If you get a loan with a high-interest rate, you might pay a lot more than your two-wheeler’s cost. Hence, it is imperative to secure a loan at the lowest rate possible. For this, when looking for options, you must compare the offerings of different financial institutions. You can quickly do your research online before settling with an option. This will help you eliminate the options whose eligibility criteria you don’t qualify for or are giving loans at a higher interest rate than the market standards.

    Final Takeaway

    If you’re looking for a two wheeler loan, apply online for the best hassle-free experience. Before applying for the loan, you must know the loan amount you need and the eligibility criteria. Once you have gathered all the information regarding the eligibility criteria of Muthoot Capital, your next step is to fill up the application online, submit your documents for verification. Once the verification is done, and you are found eligible, the loan amount is approved. You are now on your way to buy your favourite bike on EMI and steer clear of public transports!

    All You Need To Know Going Into Trade On February 23

    Asian equities have inched lower this morning. Australian markets are fluctuating while those in South Korea trade lower. Japanese markets are shut on account of a holiday.

    The Bloomberg Commodity Spot Index rose to its highest since March 2013. Oil prices held on to gains while the gap between the five-year and 30-year yoelds touched the highest in more than six years.

    The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,740 as of 7:20 a.m.

     

    Let’s take a look at the factors that may influence equities in today’s session:

    • Futures on the Dow Jones are flat this morning. The index also ended little changed on Monday.
    • The S&P 500 fell for the fifth straight day, its longest losing streak in a year. The Nasdaq fell to a three-week low.
    • Concerns are rising that central banks may eventually start reconsidering emergency programs that supported the global markets to an all-time high.
    • “I wouldn’t be surprised if market returns are more volatile in the coming months. My approach to fixed income would be to look for opportunities to start to buy the long end again,” Chris Iggo of AXA Investment Managers said.
    • Bitcoin is down for the second straight day, after declining as much as 17% on Monday post Elon Musk’s tweet that prices of the cryptocurrency had risen too high and too fast.
    • Yield on the 10-year treasuries rose to 1.37% on Monday.
    • West Texas Intermediate crude rose 0.6% to $62.11 per barrel.

    Stocks To Watch

    • Reliance Industries: Says it has begun the process of carving out the O2C business into an independent subsidiary. The process for seeking approvals is likely to be completed by Q2FY22. The reorganisation of the O2C business will result in no change in the company’s shareholding. The company also aims to achieve net Carbon Zero by 2035.
    • Hindalco: Is targeting a $2.9 billion reduction in its debt load between June 2020 and end of 2022. The group’s gross debt is estimated to be $9.2 billion, or 3x its Ebitda, as of March 31, 2021. The company aims to achieve a net debt/Ebitda ratio of 2.5x in less than two years. The company’s Novelis unit plans to repay a $1.1 billion bridge loan by March. Further, the company will refinance $540 million of $810 million INR bonds due in 2022 and repay the balance $270 million. Further the company expects to generate $1 billion to $1.2 billion cash flow a year after normal working capital and maintenance capex. Allocation toward growth capex seen at $2.5 billion to $3 billion over the next five years. The company will also focus on higher shareholder returns which it plans to achieve through increase in earnings, lower leverage and higher dividends.
    • Bharti Airtel: Will meet global fixed income investors on or after February 23, post which the company will take a final decision on the issuance of foreign currency bonds, subject to market conditions. The company’s board had earlier this month approved a fundraising plan of up to Rs 7,500 crore via debt instruments such as debentures and bonds, in one or more tranches.
    • Bharat Forge: Has announced a pact with Paramount Group for production of armoured vehicles in India. The agreement was signed by both companies during the International Defence Expo (IDEX 2021) held in Abu Dhabi.
    • IndiaMART InterMESH: Announced closure of its QIP issue on Monday. To issue 12.42 lakh shares at Rs 8,615 per share, which is a 4.97% discount to the QIP floor price of Rs 9,065.6 per shares. The company has raised Rs 1,070 crore through the issue.
    • Info Edge (India): Zomato closed primary fundraise of $250 million from five different investors. The transactions value Zomato at a post-money valuation of $5.4 billion. Info Edge’s stake in Zomato now stands at 18.4% on a fully converted and diluted basis. Zomato had earlier raised $253 million from four investors in December last year.
    • Zuari Agro Chemicals: To sell its fertilizer plant in Goa and associated businesses to Paradeep Phosphates for an enterprise value of $280 million. The sale is subject to agreed adjustments for capex, cash, debt and working changes. Paradeep Phosphates plans to fund the acquisition partly from a public issue and balance from loans and internal accruals.
    • IRB Infrastructure Developers: Has approved the allotment of Secured NCDs aggregating to Rs 2,184.55 crore on a private placement basis to India Toll Roads for a tenure of 7 years at a coupon rate of 9.927% per annum.
    • Page Industries: Has approved the appointment of VS Ganesh as Executive Director & Chief Executive Officer of the Company for a period of 5 years effective June 1, 2021.
    • Vedanta: GR Arun Kumar has resigned from the post of Whole-Time Director & Chief Financial Officer of the company to pursue a career outside of the Group.

    Brokerage Radar

    Motilal Oswal On Oil & Gas Sector

    • Marketing margins continue to offset the pain of poor refining margins
    • Refining margins continue to record gradual uptick
    • While debt has reduced considerably year-on-year for OMCs, HPCL’s balance sheet remains debt ridden
    • Indian Oil remains the preferred pick among OMCs on the back of a diversified Ebitda mix and best free cash flow generation profile over FY22-23E
    • Upgrade BPCL to buy from neutral; price target raised to Rs 520 from Rs 419
    • Downgrade HPCL to neutral from buy on concerns over project execution risks and rising debt; price target cut to Rs 277 from Rs 301
    • Reiterate buy rating on Indian Oil with a price target of Rs 142

    Prabhudas Lilladher’s India Strategy

    • Q3FY21 saw a broad-based earnings beat
    • Estimate Nifty EPS growth of 11.7% in FY21, 32.7% in FY22 and 17.4% for FY23
    • Base-case Nifty target for March 2022 at 16,075 from 15,137 earlier
    • Bull-case Nifty target for March 2022 at 19,137 from 18,921 earlier
    • Auto, capital goods, infra, cement and metals have entered a cyclical uptick and should outperform in the medium term
    • Replace UltraTech with Ambuja among top picks given improved visibility on capacity expansion
    • Including Kalpataru Power among top picks given positive outlook on T&D, deleveraging and improvement in operational performance of subsidiaries
    • Retail L&T, ICICI Bank, Polycab and Dalmia Bharat among top picks given the long-term rerating potential

    Emkay On Tata Motors

    • Maintains buy rating
    • Price target of Rs 355
    • Targeting to reach almost zero consolidated net-automotive debt by FY24 on positive free cash flow, divestments and equity infusion
    • Remain positive on sales cycle recovery in JLR and India business, strong profitability growth on better scale / cost savings and deleveraging
    • Remains high conviction buy
    • Solara Active Pharma Sciences: Promoters Pronomz Ventures LLP, Chayadeep Ventures LLP and Chayadeep Properties revoked pledge of 7.22 lakh shares between February 16-19.
    • Wockhardt: Promoter Themisto Trustee Company created a pledge of 39 lakh shares on February 19.
    • Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 66.10 lakh shares on February 16.
    • Deepak Fertilisers: Promoter Robust Marketing Services created a pledge of 20.20 lakh shares on February 18.
    • Steel Strips Wheels: Promoter Dheeraj Garg revoked pledge of 24,839 shares on February 22.

    Bulk Deals

    • Muthoot Capital Services: Saif India VI FII Holdings bought 4 lakh shares (2.43%) at Rs 397.5 per share.
    • Gabriel India: Asia Investments bought 30.30 lakh shares (2.11%) at Rs 111.97 per share.

    Who’s Meeting Whom

    • Brigade Enterprises: To meet Axis Mutual Fund on February 23.
    • UltraTech Cement: To meet Capital World Investors on February 23.
    • UTI AMC: To meet Yes Securities on February 23 and Centrum Finance on February 25.
    • TVS Motor Company: To meet Life Insurance Corporation of India on February 23.
    • Manappuram Finance: To meet CLSA on February 23.
    • PSP Projects: To meet Spark Capital Advisors (India) on February 23.
    • Cipla: To meet Emkay Global Financial Services on February 23 and Capital Research Global Investors on February 26.
    • IRCTC: To meet Motilal Oswal Asset Management Company, Dolat Capital Market and Oaktree Capital Management on February 23. To meet Fred Alger Management on February 24.
    • GMM Pfaudler: To meet Duro Capital and Malabar Capital on February 24.
    • Advanced Enzyme Technologies: To meet Nalanda India Equity Fund on February 24.
    • Tata Steel: To meet Ishana Capital on February 24, Ambit Capital on February 25, and UBS Securities and ICICI Securities on February 26.

    Trading Tweaks

    • Price Band Revised From 10% To 5%: Suzlon Energy
    • Ex-Date Buyback: NIIT
    • Ex-Date Rights Issue: Arvind Fashions
    • Ex-Date Income Distribution: Tower Infrastructure Trust
    • Ex-Date Interim Dividend: United Drilling Tools, Ircon International, Cochin Shipyard, Zuari Global, SJVN, Precision Wires India, Oil India
    • Record Date Interim Dividend: Aurobindo Pharma, Goldiam International, ITC, Mercury Laboratories, Mazagon Dock Shipbuilders, NHPC, Natco Pharma, Selan Exploration Technology, Panchsheel Organics, Tube Investments of India, Shanthi Gears
    • Move Into ASM Framework: Karda Constructions
    • Move Out Of ASM Framework: Dewan Housing Finance Corporation
    • Move Into Short-term ASM Framework: Tejas Networks, Dewan Housing Finance Corporation, TCNS Clothing
    • Move Out Of Short-term ASM Framework: Affle (India), Arvind

    Insider Trades

    • Pidilite Industries: Promoter Anuja Ankur Shah sold 40,000 shares on February 19.
    • Alembic: Promoter Nirayu acquired 4.71 lakh shares on February 19.
    • APL Apollo Tubes: Promoters Veera Gupta and Romi Sehgal sold 27,800 shares between February 16-17.
    • Godrej Agrovet: Promoter Godrej Industries acquired 8,910 on February 16.

    Money Market Update

    • The currency ended at 72.49 against the U.S. Dollar as compared to Thursday’s close of 72.64.

    F&O Cues

    • Nifty February futures ended at 14,642; discount of 33 points
    • Nifty February futures shed 15.7% and 22,219 shares in Open Interest
    • Nifty Rollovers at 28.53%
    • Nifty Bank February futures ended at 35,168; discount of 91 points
    • Nifty Bank February futures shed 17% and 10,400 shares in Open Interest
    • Nifty Bank Rollovers at 29.47%
    • Nifty Put-Call Ratio at 0.68
    • Stocks In F&O Ban: BHEL, Canara Bank, SAIL, Vodafone Idea

     

    Originally Posted On: bloombergquint

    Why Shares Of Muthoot Capital, HOEC, AB Capital, Zuari Agro Rallied Between 6-18%

    India’s broader market is trading with gains, mirroring the benchmarks that have rebounded after five straight sessions of losses.

    1,293 stocks on the National Stock Exchange were trading with gains, while 523 suffered losses as of 11:00 a.m.

    Here are some of the broader market movers on Tuesday:

    Muthoot Capital Services

    • SAIF India VI FII Holdings acquired 4 lakh shares or a 2.43% equity of the financial services provider.
    • Shares, according to data available on the exchanges, were purchased at Rs 397.5 apiece.
    • According to shareholding as of December, SAIF India VI FII Holdings had a 7.1% stake in the company.
    • Shares gained as much as 14.3% — the most since January 2020 — to Rs 450 a piece.

    Zuari Agro Chemicals

    • The board of the agrochemical maker approved the sale of its fertiliser plant in Goa and associated businesses to Paradeep Phosphates Ltd. as a going concern and on a slump sale basis, aiming to consolidate bulk fertiliser operations.
    • The enterprise value for this deal is $280 million.
    • Paradeep Phosphates plans to fund the acquisition through a public issue and a combination of loans and internal accruals.
    • Shares of Zuari Agro gained as much as 18.2% — the most since January 2020 — to Rs 108 a piece.

    HOEC

    • All stocks that are sensitive to change in oil prices are trading with gains on higher crude prices.
    • Shares of HOEC gained as much as 12.1% — the most since August 2020 — to Rs 100.1.
    • Brent crude prices are up 1.8% at $66.41 per barrel, while WTI crude is up 1.6% at $62.66 per barrel.
    • According to Goldman Sachs, oil prices can top $70 per barrel in the near term. OPEC is set to meet on March 4 to discuss whether to supply more oil to the market from April onwards.

    Aditya Birla Capital

    • The financial services company is the second-best performer on the Nifty Midcap.
    • The stock has gained in six of the last seven trading sessions, rallying more than 25% during the period.
    • The stock’s volumes are more than triple its 20-day average, according to Bloomberg data. It is also trading in the overbought territory with the Relative Strength Index at 73. A reading above 70 indicates an overbought zone.
    • Shares gained as much as 6.4% to Rs 112.9 apiece — the highest November 2018.

     

    Originally Posted On: bloombergquint

     

    Elevation Capital raises stake in Muthoot Capital to 9.52%

    Elevation Capital VI FII Holdings (formerly known as SAIF India VI FII Holdings) has upped its stake in Muthoot Capital Services from 7.02 per cent to 9.52 per cent.

    In a regulatory disclosure, Elevation Capital said it acquired the shares of Muthoot Capital Services via open market purchase on Monday.

    Muthoot Capital Services, promoted by the Muthoot Pappachan Group, is a Non-Banking Finance Company (NBFC). It offers retail finance products such as two-wheeler loans and used car loans and an investment product in the form of fixed deposits.

    As of December-end 2020, the assets under management of Muthoot Capital Services stood at ₹2,199.6 crore (₹2,235.4 crore as of September-end 2020).

    “Used car loan business is spreading to other locations, albeit slowly; e-rickshaws disbursement has started, consumer durable will start in FY21; co-lending as a form of sourcing is also expected to start in Q4 FY21 in areas where our own presence is low,” the company said in a recent presentation.

     

    Originally Posted On: The Hindu Businessline

    Muthoot Capital Services LTD Share Price: Stock Increased an Energizing 206% in the Last Five Years

    1. Executive Summary

    Muthoot Capital Services Limited, a non-banking finance company (NBFC), provides fund and non-fund based financial services. The company offers two wheeler, used car, consumer durable, secured business, term, and loyalty loans; short-term and long-term deposit plans; and subordinated debts, as well as advisory services. It is also involved in buying loan portfolio of other NBFCs/micro finance companies. The company serves retail, corporate, and institutional customers through a network of branches in India. Muthoot Capital Services Limited was founded in 1994 and is based in Kochi, India.

    2. Share Price & News

    How has Muthoot Capital Services’s share price performed over time and what events caused price changes?

    3. Valuation

    Is Muthoot Capital Services undervalued compared to its fair value and its price relative to the market?

    14.64x

    Price to Earnings (PE) ratio

    4. Future Growth

    How is Muthoot Capital Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

    26.9%

    Forecasted Diversified Financials industry annual growth in earnings

     

    In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Muthoot Capital Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

    This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

    5. Past Performance

    How has Muthoot Capital Services performed over the past 5 years?

    17.6%

    Historical annual earnings growth

    6. Financial Health

    How is Muthoot Capital Services’s financial position?

    7. Dividend

    What is Muthoot Capital Services’s current dividend yield, its reliability and sustainability?

    8. Management

    How experienced are the management team and are they aligned to shareholders interests?

    6.0yrs

    Average management tenure

    9. Ownership

    Who are the major shareholders and have insiders been buying or selling?

    Insider Trading Volume
    Ownership Breakdown
    Top Shareholders

    10. Company Information

    Muthoot Capital Services Limited’s company bio, employee growth, exchange listings and data sources

     

    Originally Posted On: simplywall