1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is paid off. It consists of 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 required to repay a loan over a specified period, accounting for compound interest.

3. About Bajaj Housing Finance

Details: Bajaj Housing Finance offers home loans starting at 7.49% p.a. interest rate with flexible tenure options up to 30 years. Their loans come with minimal documentation and quick approval process.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (default is 7.49%), and loan tenure in years. The calculator will show your monthly EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for Bajaj Housing Finance?
A: Rates start at 7.49% p.a. and vary based on loan amount, tenure, and applicant's profile.

Q2: How is monthly interest calculated?
A: Annual rate is divided by 12 to get monthly rate. Interest is calculated on the reducing balance.

Q3: Can I prepay my Bajaj home loan?
A: Yes, Bajaj allows prepayment with certain terms and conditions. Prepayment charges may apply.

Q4: What factors affect my EMI amount?
A: Principal amount, interest rate, and loan tenure are the three main factors affecting EMI.

Q5: Is the EMI fixed for entire loan tenure?
A: Yes, EMI remains fixed unless interest rates change (for floating rate loans) or you make prepayments.