1. What is EMI Calculation?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For Bajaj Finance business loans, this includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan (principal + interest) over the loan term.

3. Importance of EMI Calculation

Details: Understanding your EMI helps in financial planning, assessing loan affordability, and comparing different loan options before making a borrowing decision.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate in percentage, and loan tenure in years or months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Bajaj Finance's typical business loan interest rate?
A: Interest rates vary based on credit profile but typically range between 12% to 24% per annum for business loans.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there any prepayment charges on Bajaj business loans?
A: Bajaj Finance may charge prepayment penalties, typically 2-5% of the outstanding amount. Check current terms before prepayment.

Q4: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the primary factors. Processing fees may also affect total cost.

Q5: Can I change EMI during loan tenure?
A: Generally, EMI remains fixed unless you opt for restructuring or prepayment. Some loans offer step-up/step-down EMI options.