Disclaimer
Results generated by the calculator(s) are indicative in nature. The interest rate applied on the loan will depend on the prevailing rates at the time of loan booking.
The calculator(s) is not intended to provide its users/ customers with results that are either certified by Bajaj Finance Limited (“BFL”) or are an obligation, assurance, warranty, undertaking or commitment, financial and professional advice by BFL, under any circumstances. The calculator(s) is only a tool that assists the users/ customers arrive at the results of various illustrative scenarios generated from data input by the user/ customer. The use of the calculator is entirely at the risk of the user/ customer, BFL is not responsible for any reason, for any errors in any outcome resulting from the use of the calculator.
Frequently asked questions
The EMI calculation formula to calculate loan EMI is as follows:
EMI = P x R x (1+R)^N / [(1+R)^N-1], where P is the principal, R is the rate of interest, and N is the tenure.
Enter the principal, tenure, and rate of interest to calculate the EMIs payable, and total interest payable and get a detailed amortisation schedule.
The amortisation schedule is a table or a schedule that shows how the loan's principal and interest are split up each month over the tenure of the loan.
The following factors influence your personal loan due amount:
- Tenure of the loan - A loan’s tenure can be reduced or extended at the borrower's choice. When you choose a longer tenure, your EMIs will be lower and, vice versa.
- Rate of interest – The interest rate is an important consideration when calculating your personal loan EMIs. A reduced interest rate can help in keeping the repayment low.
- Loan amount – The amount of the loan is a major factor in determining your monthly EMIs. When you choose a larger loan amount, your EMIs will be higher, and conversely, EMIs will be low when you borrow a lower amount.
Failing to make an EMI payment can result in incurring late fees, and a negative impact on your credit score. Utilising online EMI calculators or monthly EMI calculators prior to making a purchase can prevent this. They will help you plan repayments effectively, ensuring you make timely payments and maintain financial stability.
To calculate EMI with a reducing interest rate, use the formula: EMI = [P x Ix (1+I) ^T]/ [((1+I) ^T)-1)] where P is the principal, I is the monthly interest rate, and T is the tenure in months.
Yes. you can compute your monthly EMIs for various types of loans using an online loan EMI calculator. Using an EMI calculator is simple. Use the slider to select the loan amount you wish to borrow, the repayment term and the loan interest rate quoted. Once you have selected these three inputs, your EMI will be displayed on the screen.
The debt-to-income (DTI) ratio measures your monthly debt obligations compared to your income. A lower DTI indicates better financial health, improving your chances of loan approval, while a high DTI may reduce eligibility.
A floating rate EMI (equated monthly installment) calculation is based on a variable interest rate that can change over the loan tenure. Unlike fixed-rate loans, where the interest rate remains constant, floating rates fluctuate based on market conditions, typically linked to a benchmark like the Reserve Bank of India's repo rate. This means that your EMI can increase or decrease over time, depending on the interest rate movement.
Types of floating rate loans:
- Pure floating rate: The interest rate fully reflects market changes, adjusting periodically based on the lender’s benchmark rate.
- Hybrid rate: Combines fixed and floating rates, often starting with a fixed rate for an initial period before switching to a floating rate.
- Partially floating rate: A portion of the loan amount is subject to floating interest, while the rest is at a fixed rate.
Understanding these types helps borrowers choose the best loan option based on their financial stability and risk tolerance.
An EMI calculator in India helps borrowers estimate their monthly instalments by considering the loan amount, interest rate, and tenure. It allows users to compare different loan scenarios, plan budgets effectively, and make informed financial decisions. By adjusting parameters, borrowers can choose an EMI that suits their repayment capacity and avoid financial strain.