Bajaj Home Loan EMI Calculator

EMI Calculation Formula:

\[ PMT = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Monthly EMI (PMT):

Total Payment:

Total Interest:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount made by a borrower to a lender at a specified date each calendar month. The formula accounts for both principal and interest components of the loan.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ PMT = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( PMT \) — Monthly EMI payment
\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Number of monthly installments (loan tenure in years × 12)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified term.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan offers. It's essential for budgeting and ensuring loan affordability.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three main factors: loan amount, interest rate, and loan tenure. Higher amounts or rates increase EMI, while longer tenures reduce EMI.

Q2: How does prepayment affect my EMI?
A: Prepayment reduces the principal amount, which can either lower your EMI or shorten your loan tenure, depending on the terms you choose.

Q3: Are there any other charges besides EMI?
A: Bajaj may charge processing fees, prepayment penalties, or other administrative charges. These are not included in the EMI calculation.

Q4: What is the difference between reducing balance and flat interest rate?
A: This calculator uses reducing balance method where interest is calculated on the outstanding principal. Flat rate calculates interest on the full loan amount throughout the tenure.

Q5: Can I change my EMI amount after taking the loan?
A: Some lenders offer EMI restructuring options, but terms vary. Check with Bajaj Finance for their specific policies.