Bajaj Finance Home Loan EMI Calculator

Bajaj Finance Home Loan EMI Calculator

Buying a home is one of the biggest financial decisions you will make in your lifetime. With home loan amounts often running into lakhs or crores, understanding how much you must pay every month. Bajaj Finance home loan EMI calculator is a user-friendly tool that helps you estimate your monthly payments, plan your finances better, and select the right loan tenure. 

With just a few inputs, such as the loan amount, interest rate, and repayment tenure, the Bajaj Finance housing loan EMI calculator provides an accurate breakdown of what you can expect to pay each month, helping you decide on a loan that suits your budget. 

What Is a Home Loan EMI Calculator?

A home loan EMI calculator is an online tool that helps you compute the equated monthly instalments (EMI), the repayment amount you must pay every month. The EMI is influenced by three primary factors: the principal loan amount, the interest rate charged by the lender, and the loan tenure. 

With the Bajaj Housing Finance EMI calculator, you no longer need to do complex calculations manually. Instead, you can instantly see what your payments will be, helping you adjust the loan amount or tenure based on what works best for you. 

How Does a Home Loan EMI Calculator Work?

The Bajaj Housing Loan EMI calculator works based on the compound interest formula. Compound interest is interest calculated on both the principal amount (home loan borrowed) and interest accumulated over time. The calculator takes the values for loan amount, interest rate and tenure and uses this formula to calculate EMIs. 

The following formula is used to calculate home loan EMIs:

EMI = P x r x (1 + r)^n / [(1+r)^ (n – 1)]

• Where P is the principal home loan amount
• r is the rate of interest per month
• n is the tenure in months 

For example, if you input a loan amount of ₹30 lakhs with a 20-year tenure and an interest rate of 8.50% p.a., the calculator will display your monthly EMI, along with a breakdown of the principal and interest component of each EMI. 

In the above example, the EMI amount will be ₹26,035, while the total interest will be ₹32,48,327. The total amount payable (principal + interest) will be ₹62,48,327.

Key Factors That Affect the Home Loan EMI

Before you go to a bank to get a home loan, you must try different plans to find the one that works best for you. Here are the three most important factors that directly affect your EMI payment each month.

Loan Amount:

The principal loan amount is the total amount you have borrowed from the lender. Higher loan amounts naturally result in higher EMIs. Your eligibility for the loan amount depends on your income, credit score, and other factors determining your repayment capacity.

Interest Rate:

The yearly rate of interest you must pay to the lender also affects the EMI. A lower interest rate means lower monthly instalments and vice versa. It is advisable to compare various lenders to find the best interest rates. The interest rate you can get depends on factors like your credit score, repo rates, LTV ratio, etc. 

Loan Tenure:

The loan tenure refers to the period over which you will repay the loan. Longer tenures spread the payments over a longer period, thereby reducing the monthly EMI. However, a longer tenure also means paying more interest over the life of the loan. In contrast, a shorter tenure will increase your EMI but will save you on interest in the long run.

By adjusting these factors in the Bajaj Finance home loan EMI calculator, you can explore various combinations to find a balance between the EMI and your financial comfort.

Benefits of Using a Home Loan EMI Calculator

When planning for a home loan, one of the most efficient ways to calculate your EMI is through an online calculator. Here are some of the key benefits:

Time-Saving:

Calculating EMIs manually can be a time-consuming and tedious process. With the online Bajaj Finance home loan calculator, you get instant results. You just need to enter the loan amount, tenure, and interest rate, and the tool will generate your EMI within seconds.

Accurate Calculations:

Manual calculations are prone to human errors, which can lead to incorrect EMI estimates. The Bajaj Housing loan calculator eliminates this risk by providing precise results based on your input.

Compare Loan Offers:

The tool allows you to simulate different loan scenarios, helping you compare loans from different lenders. You can adjust the loan amount, interest rate, and tenure to see how different combinations will affect your debt obligations.

Plan Finances Better:

Knowing your EMI beforehand helps you budget better. You can understand how much of your income will go towards loan repayment and make adjustments accordingly. For instance, if the EMI is too high, you can either increase the tenure or opt for a smaller loan amount.

Free and Easy to Use:

The Bajaj Finance home loan interest rate calculator is available for free, and you can use it as many times as you want to explore various loan scenarios.

Bajaj Home Loan Interest Rates

Interest rates for home loans can vary depending on whether you are a salaried or self-employed individual. Bajaj Finance offers competitive interest rates, but it is important to know what to expect before applying for a loan.

Salaried Applicants

Bajaj Finance offers home loan interest rates ranging from 8.50% to 15.00% per annum for salaried individuals. These rates depend on factors such as your credit score, the loan amount, and the tenure you choose.

Self-Employed Applicants

If you are self-employed, interest rates typically range from 9.10% to 15.00% per annum. The higher rate is because lenders generally consider self-employed individuals at higher risk than salaried applicants.

By using the Bajaj Finance home loan EMI calculator, you can calculate your EMI based on these interest rates and choose a tenure that best suits your financial situation.

Bajaj Finance Housing Loan for Different Loan Tenures

The Bajaj Finance home loan EMI calculator compares EMIs across different loan tenures. This is particularly useful because the tenure of the loan directly impacts your monthly EMI. For instance:

By comparing EMIs across different tenures, you can select the tenure that best fits your budget. While a shorter tenure results in higher EMIs, it also reduces the total interest you pay.

Bajaj Finance Housing Loan for Different Loan Amounts

Similarly, you can use the Bajaj home loan calculator to compare EMIs across different loan amounts. This allows you to see how much you can afford to borrow based on your current financial situation. For example:

What is the Home Loan Amortisation Schedule?

A home loan amortisation schedule is a detailed table outlining loan repayment, breaking down principal, interest, and balance over the loan tenure, helping borrowers track progress and understand their repayment journey.

Spanning the full loan period, this schedule helps borrowers track how their payments gradually shift from covering mostly interest to reducing the principal, providing a clear picture of the repayment journey.

Most Bajaj Finance home loan calculators provide a detailed amortisation (repayment) schedule showing the details of each instalment over the chosen tenure. 

How Does Loan Amortisation Schedule Help in Paying EMI?

A loan amortisation schedule is a table that details each EMI payment throughout the loan tenure. It breaks down the EMI into two parts, principal repayment and interest payment, and shows how each part evolves. Here is why an amortisation schedule is useful:

Interest Component Decreases Over Time

In the initial years of the loan tenure, a large portion of your EMI goes towards interest payment. As the loan progresses, the interest component decreases, and a larger portion of the EMI goes towards repaying the principal amount.

Provides Clear Repayment Plan

An amortisation schedule gives you a clear picture of your repayment plan. It helps you understand how much you still owe at any given time during the loan tenure. This is particularly useful if you are planning to repay the loan, as you can see the exact amount required to settle the remaining loan.

Plan for Future Prepayments

By understanding how your EMI breaks down between principal and interest, you can strategize when to make additional prepayments to reduce your loan burden faster. For instance, prepaying early in the tenure reduces the total interest payable, thus saving you money in the long run.

Transparency

An amortisation schedule is a transparent document that keeps you informed of your payments. It eliminates any surprises and helps you stay on top of your loan repayment.

A typical amortisation schedule for a ₹30 lakh home loan with a 20-year tenure at an 8.50% p.a. interest rate would look like this:

This schedule provides a transparent view of how the loan repayment process unfolds over time, helping you track your financial progress and plan better.

How can NoBroker Help with Home Loan Assistance and Application?

NoBroker is an online resource that facilitates the search for and acquisition of real estate and the related tasks of arranging a mortgage. To help you get the best home loan rates possible for your specific condition and needs, NoBroker has established relationships with numerous banks and non-banking financial companies. You can get the best loan for your situation with the help of NoBroker’s home loan and real estate experts.

Comparing several loans by looking at their interest rates, housing loan repayment schedules, and other details is possible when you have access to the free Bajaj Finance home loan EMI calculator. Get in touch with NoBroker’s expert today and come one step closer to owning your dream home.