1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a home loan. It includes both principal and interest components, with the interest portion being higher in initial payments.

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 ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment

Explanation: The formula accounts for compound interest over the loan tenure, calculating a fixed payment that pays off both principal and interest by loan maturity.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan finances, and compare loan offers from different lenders.

4. Using the Calculator

Tips: Enter principal 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: Is this calculator specific to Bajaj Finserv?
A: While it uses standard EMI calculation methods, actual Bajaj Finserv loans may include additional fees or special terms.

Q2: What factors affect EMI amounts?
A: EMI depends on principal amount, interest rate, and loan tenure. Higher principal/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q3: Can I prepay my home loan?
A: Most lenders allow prepayment, often with some conditions. Prepayment reduces total interest and may shorten loan tenure.

Q4: Are there other charges besides EMI?
A: Home loans may include processing fees, insurance, and other charges not reflected in EMI calculations.

Q5: How does EMI change with floating rates?
A: For floating rate loans, EMI amounts may change when interest rates are revised by the lender.