1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation helps determine the fixed monthly payment amount for a personal loan, including both principal and interest components, over the loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (decimal)
• \( N \) — Number of monthly installments
• \( EMI \) — Equated Monthly Installment (INR)

Explanation: The formula calculates the fixed monthly payment required to pay off a loan over a specified period, accounting for both principal and interest.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, understand their repayment capacity, and make informed decisions about loan amounts and tenures.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect EMI amount?
A: EMI amount is determined by three main factors: principal amount, interest rate, and loan tenure.

Q2: How does tenure affect EMI?
A: Longer tenures result in lower EMIs but higher total interest paid, while shorter tenures mean higher EMIs but lower total interest.

Q3: Are there any hidden charges in EMI calculation?
A: This calculator shows only principal and interest components. Actual loans may include processing fees, insurance, or other charges.

Q4: Can I prepay my Bajaj Finance personal loan?
A: Prepayment policies vary. Check with Bajaj Finance for their specific prepayment terms and conditions.

Q5: Is the interest rate fixed or floating?
A: Most personal loans have fixed interest rates, but confirm with Bajaj Finance for their specific product details.