Bajaj Finance Limited is one of India’s most diversified non-banking financial company (NBFC) investing heavily in technology, people, and processes. Bajaj Finserv believes in focussing on both existing as well as new customers. A personal loan serves as a huge financial support in times of need and helps us achieve many goals in life. The personal loan offered by Bajaj Finserv can be availed online with approval in five minutes and disbursal within 72 hours. Bajaj Finance Limited grants personal loans of up to Rs.25 lakh which you can repay within 24 to 60 months.
The Bajaj Finance Personal Loan can be repaid in EMIs (Equated Monthly Installments). EMIs consists of the principal amount along with the applicable interest charges. Before applying for a loan, it is important to understand the breakup as well as the EMI amount. Knowing the exact amount helps you in financial planning as you would be paying this amount as repayment towards the loan over a fixed period of time.
The Personal Loan EMI Calculator of BankBazaar is a comprehensive tool that helps in determining the instalment amount of the loan. It also gives a detailed breakup of various charges. The online tool uses an amortisation table to give instant output. To use the BankBazaar loan EMI Calculator, all you have to do is visit the homepage and click on the drop down menu on the extreme right. From the list, select finance tools and then ‘EMI Calculator’. The page prompts you to enter loan details such as loan amount, tenure, and rate of interest, processing fee and whether or not you would like to make pre-payments. Click on calculate to generate the monthly EMI that you will incur towards the loan and other details.
You must enter the loan amount you want to borrow and other details in the online EMI calculator. The formula that the calculator uses is:
E = P x R x (1+R) ^n/ [(1+R) ^n-1]
Where, E is the EMI that is required to be paid monthly
P is the amount to be borrowed
R is the interest rate on a monthly basis
n is the loan tenure in months
Apart from these basic components, the calculator also uses processing fee sometimes to calculate the EMI. It is different at different NBFC as it is typically a certain percentage of the loan amount borrowed from the lender. The processing fees can be anywhere between 1% and 3%.
Determination of EMI:
The online EMI calculator accurately calculates the exact EMI to be paid towards the Bajaj Finance Personal Loan. This enables advance planning of our monthly budget and expenses. Also, the figures from this tool can be used to negotiate with the lender to provide better rates.
Use of Amortisation Table:
The amortisation table in the calculator enables generation of a detailed breakup of the principal amount and interest charges required to be paid monthly until the end of tenure. This can also provide assistance for considering and calculating loan repayment terms like pre-closure.
Finance Charges Details:
The online tool also displays a pie-chart presenting a breakup of the financial charges towards the loan. Being aware of information such as processing fee and interest charges may help you in attaining a better deal with the NBFC.
Usually, the calculations are done on a reducing balance principal and are almost accurate. However, it may vary from each lender based on the method of calculation.
Yes, the calculator allows you a clearer idea of the EMI as it gives a detailed breakup of the same. By using this tool, you can compare the change in interest charges applied on the outstanding loan balance.