How Does Bajaj Finance Personal Loan EMI Calculator Help Plan Your Repayment?

Bajaj Finance has somewhat made a name for itself in the personal loan segment with exciting offers to lure the customers around. Its personal loans have helped many renovate their homes with impressive decors, travel around the world and even meet the wedding finance. All in all, a wide range of needs are fulfilled via its personal loan.

Even though needs are fulfilled, the costs can pinch you if you are not aware of it. You could argue that you are aware of its interest rate. But that’s the broader cost applicable to a loan, you need to delve deeper by checking the EMI applicable. For that, you must glance at Bajaj Finance Personal Loan EMI Calculator, which is best suited to check the installment. So, are you ready to study the function of the calculator? If so, then you would find this article an interesting read.

Three Pivots of Bajaj Finance Personal Loan EMI Calculator

The calculator performs its operations mainly on three elements - loan amount, tenure and interest rate. With powerful algorithms, the calculator gives accurate results of EMI payable from a borrower. Consequently, the total interest amount payable would also be shown, making the repayment summary transparent for you to take a right call. So, why don’t you use the calculator?After all, it’s there online for use. Just enter the three variables said above to calculate the installment.

How Much Interest Rate Chargeable on Bajaj Finance Personal Loan?

Bajaj Finance offers a personal loan at 10.99%-16% per annum, quite reasonable when you look at the market in general. At the same time, you can be given a loan of up to ₹25 lakhs for a period of 12-60 months. Now that you know all three elements, let’s calculate using the following example.

Example - Ravi Malhotra applies for a personal loan worth ₹12 lakhs at Bajaj Finance, which lends him the same at 13% interest rate for a period of 5 years. In Ravi’s case, the EMI and interest payable would be ₹27,304 and ₹4,38,221, respectively.

What Percentage of Your Income Should the EMI Constitute?

For you to enjoy a smooth repayment, it’s imperative that the EMI, which stands for equated monthly installment, must remain within 30%-40% of your net monthly income. If the proposed EMI is more than that, you should then use a bit of your savings to reduce the loan amount and the installment. Also, when the loan repayment is on, make sure to cut down on a few spends you were making before your credit journey. The definition of income must change post the repayment. So, if your net income before loan used to be ₹40,000, it should change to ₹28,623, a sum arrived after deducting the EMI of ₹11,377 taking into account a loan of ₹5 lakhs, the interest rate of 13% and tenure of 5 years. So, spend according to the new income so as to keep out the hassles away from your repayment sojourn.

Well, the interest rate and other offers of Bajaj Finance Personal Loan just add to the temptation. A close look at the EMI calculator may just be the due diligence you need to make before applying for a loan.