Important news for Royal Enfield Classic 350 buyers! After 1 lakh down payment, how much EMI will be paid per month?

If you are planning to make a down payment of Rs 1 lakh while buying the Classic 350, the remaining amount can be taken as a loan. So one can easily buy a bike in one’s own name by paying a fixed monthly installment. However, it is important to think about the duration of the loan. (Royal Enfield Classic 350)

Currently, the on-road price of the base model of this bike is around Rs 2.14 lakh, while after paying Rs 1 lakh upfront, you will have to take a loan of around Rs 1.14 lakh. On this amount, the bank fixes monthly installments along with interest.

How much EMI for 3 years loan?

Many customers opt for a 3-year term, as this option offers a good balance between monthly installments and total interest. If the loan carries an interest rate of around 9.5 per cent per annum, the EMI can be around Rs 3,650 per month.

This option is considered suitable for people who do not want to stress on monthly expenses and at the same time do not want to spend a lot of money on interest.

If the loan is to be paid off in 2 years…

Some decide to become debt free as soon as possible. In such cases 2 years option can be selected. The EMI increases during this period and can go around Rs 5,200 to 5,300.

Even if the installment is high, the loan ends quickly. Therefore, the total interest cost also remains relatively low. This option can be beneficial for customers with regular income.

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How profitable is a 5-year option?

If monthly expenses are to be kept low, then 5 years term can be chosen. The monthly EMI in this option can be around Rs 2,400. Hence financial stress is felt less. But one thing has to be remembered in this. As the tenure of the loan increases, the total interest payable to the bank also increases.

Check these things before taking a loan

Before financing a bike, it is important to compare the interest rates of different banks or finance companies. Also understand the processing fees, early repayment charges and other terms. This does not create any financial confusion later on.

If you have the capacity to make a higher down payment, the loan amount will be reduced and it will directly benefit the EMI and interest.

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Royal Enfield Classic 350 can be easily purchased with proper financial planning. So choose the loan tenure according to your income and take the final decision considering the future expenses.