Bajaj Finserv Personal Loan EMI Calculator

Bajaj Finance is one of the most popular NBFCs, and their primary area of lending is consumer finance. Besides this, they also provide online personal loans at the quickest time. If all the documents required are provided and their eligibility norms are complied with, the personal loan can be acquired within hours. The personal loan is provided at 11%, the most economical rate compared to the prevailing market rates. However, you can do an eligibility check before applying for the loan by using Bajaj Finserv personal loan EMI calculator. 

Bajaj Finance Personal Loans should not become a temptation as it is readily available. Borrowing impulsively will land you in a debt trap that will lead to financial stress. So you should borrow only if needed and should take care to watch your budget as well. For that, you should consolidate all the debts to arrive at the amount available to service the personal loan and limit the personal loan EMI to that extent. You can use the Bajaj Finance Personal Loan EMI calculator to arrive at the desirable EMI. Follow the given steps to understand how to use the Bajaj Finserv Personal Loan EMI Calculator.

• Visit the official website of Bajaj Finance.
• Choose ‘Personal Loan EMI Calculator’ under the ‘Calculator’ option on the dashboard.
• Enter the desired amount, interest rate and the tenure to arrive at the EMI
• You can use the Bajaj Personal Loan EMI calculator as often as needed until you arrive at the EMI that suits your budget.

The calculation of interest varies from lender to lender. Some calculate the interest at a flat rate, i.e., on the entire principal amount, and some apply the reducing balance method. The formula for EMI calculation depends on the process of interest calculation. Bajaj Finance uses the reducing balance method for interest calculation. The formula that will give an idea of the interest payable for the personal loan availed will be

EMI = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

P is the principal   
R is the rate of interest     
N is the tenure.

You can do the calculation using the Bajaj Finance Personal Loan EMI calculator and get the value in no time. Not only the EMI value but also the interest payable will also be calculated. With this, you will get an idea about the cost of the loan that will prompt you to plan for prepayments well in advance.

The Bajaj Finance Personal Loan EMI Calculator should be compulsorily used to understand your monthly obligation towards the proposed loan. It is a tool that will instil financial discipline to manage your commitments and seamlessly repay the personal loan. The various benefits of the Bajaj Finance Personal Loan EMI Calculator are given below:

• It will give you an idea about the additional expense that has to be managed with the monthly income. You can then plan your finances accordingly by cutting down on unnecessary expenditures, if any, to fit in the additional commitment.
• Once you are sure that the EMI will be within your budget and you will be able to service the loan promptly, you can confidently apply for the loan and enter into an agreement with the lender.
• The EMI calculation will be speedy and accurate. Manual calculation of the EMI will be cumbersome and confusing. You will not be able to get accurate results with manual calculation. You can avoid errors in calculation by using the Bajaj Finance Personal Loan EMI calculator.
• You can try various tenure options till you get the EMI that fits your budget. Choose a longer tenure if the surplus funds available for the proposed commitment is on the lower side. The interest cost will be higher if the tenure is longer. You can always make periodical prepayments whenever there are surplus funds to reduce the tenure.
• The amortisation schedule will give you a clear picture of the principal, and interest break-up for the EMI arrived at for the entire loan tenure. This will help you to decide at which stage the prepayments will make a difference to the interest cost.

The Bajaj Finserv Personal Loan EMI calculator will help you make an informed decision by giving you an accurate idea about the EMI and the overall cost of the loan.

The ease at which personal loans are available lures impulsive borrowing. You need to assess your repayment capacity before you even decide to apply for a personal loan. The loan amount and the tenure are decided by the affordable EMI, and this can be arrived at using the Bajaj Finserv Personal Loan EMI calculator. The reasons why the EMI calculator should use are:

• It gives the fundamentals of the loan along with the amortisation schedule. The amortisation schedule is a chart that gives the apportionment of EMI towards the principal and the interest for the entire loan term. It will also give you an idea of the cost of the loan for a given EMI.
• It helps you plan your finance so that you do not miss out on repayments and prevent any serious repercussions like a depleted credit rating.
• You can compare the EMIs with different interest rates so that you can choose the right personal loan.
• On arriving at the EMI, you can make necessary changes in your monthly budget to accommodate the new commitment.

The personal loan eligibility depends on the Credit Score, income, investments and employment type. But the key factor that decides the loan amount and the tenure is the EMI. Before applying for the personal loan, you should evaluate the surplus funds available out of the monthly income to service the personal loan without interruption. You can calculate the EMI commensurate to your repayment capacity using the Bajaj Finance Personal Loan EMI Calculator. All you have to do is enter the loan amount, tenure and the rate of interest, and you get the EMI value in a jiffy. Calculate the EMI several times until you arrive at the EMI that fits your budget.

The factors affecting the personal loan EMI are: 

Loan amount: The loan amount depends on the repayment capacity, employment type and CIBIL score. But the EMI depends on the loan amount. The higher the loan amount, the higher will be the EMI and vice-versa. It is advisable to go for a loan amount with an EMI that will fit your budget in order to have a stress-free personal loan experience.

Tenure: Bajaj Finance provides personal loans with a flexible repayment period ranging from 12 months to 60 months. Before applying for the personal loan, evaluate the affordable EMI and manage the tenure to suit the EMI that fits your budget. If the EMI is lower, then the tenure will be longer, and if the EMI is higher, the tenure will be lower. The overall cost of the loan will be higher if the tenure is longer. This can be managed by making periodical prepayments whenever there are surplus funds.

Rate of interest: The rate of interest plays a critical role in arriving at the EMI. The higher the rate of interest, the higher will be the EMI. The method of interest application also plays an important role in deciding the EMI. If the flat rate method is applied, the interest will be calculated on the original loan amount, and the EMI will remain constant. Even if prepayments are made, the interest will be calculated on the original loan amount alone. Whereas if the interest is on a reducing balance, the cost of the loan can be controlled by making periodical prepayments. You can either keep the EMI constant and reduce the loan tenure or keep the loan tenure constant and reduce the EMI. The EMI is slightly higher if the flat rate method of interest calculation is adopted.

If you think the cost of the loan is determined by the interest charged alone, you are mistaken. There are other bank charges that scale up the cost of the loan. While the Personal Loan EMI calculator can give you an idea of the interest payable for personal loan tenure chosen, the EMI Calculator cannot tell about the following:

Processing charges: Processing charges are collected at the rate of 0.5% to 2% of the loan amount either at the time of accepting the loan application or at the time of disbursing the loan amount, depending on the lender.

Prepayment charges:  Prepayment charges are collected at the rate of 2% to 4% of the outstanding loan amount.

Delayed payment charges: Penal Charges at 2% of the overdue amount will be charged for delayed payment of EMI.