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In India, Bajaj Finance is one of the most trusted NBFCs and provides a range of financial services for various funding needs. Also, this financier offers credit services like home loans with an easy application process and affordable charges for aspiring home buyers.

In terms of housing finance, Bajaj Finance can provide up to 80% of the property’s market value as a loan at minimal documentation. Thus, after selecting a property, buyers can approach this lender for housing loans with necessary documents.

Moreover, this financial institution also helps individuals to manage their finance with useful online tools like Bajaj Finance home loan calculator.

## Bajaj Finance Home Loan Calculator

A Bajaj Finance home loan calculator is an online tool that can assist borrowers with availing the right amount of loan as per their financial capacity. The calculator computes EMI amounts with individuals entering three fundamental components of loans such as principal amount, interest rate, and repayment tenure.

Homebuyers can also check different EMI options by tweaking the tenure or advance amount on the Bajaj Finance home loan EMI calculator and pick the most feasible instalment amount.

## What is the Process of Calculating Bajaj Finance Home Loan EMIs?

The Bajaj Finance home loan calculator uses the following mathematical formula to compute the EMI amount –

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

In this formula –

• P = Principal amount
• R = Rate of interest
• N = Number of monthly instalments

Following is an example that elaborates how the Bajaj Finance housing loan EMI calculator uses the mathematical formula for EMI calculation –

Radhika works in an MNC and has availed a home loan of Rs. 30 lakh at 9.2% yearly interest rate for 20 years.

Here, the calculator inputs are tabulated as –

 Principal amount or P Rs.30,00,000 Rate of interest or R 9.2% Number of payouts or N 240 months

According to the formula –

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

= [30,00,000 X 9.2% X (1 + 9.2)^240] / [(1 + 9.2%)^240-1]

= 27,379

So, Radhika has to pay a monthly instalment of Rs. 27,379 for the entire tenure. Moreover, with the help of the EMI calculator for home loan Bajaj Finance, she can also estimate the total payable amount, which is calculated as Rs. 35,70,871.

## What are the Factors that Affect Home Loan EMIs?

While calculating EMIs, a few factors can influence them –

• Interest rates

The rate of interest is one of the prime components that significantly influence loan EMIs proportionately. Bajaj Finance presents its home loan facility of up to Rs. 3.5 crore at competitive promotional interest rates of 7.5% onwards. Nonetheless, depending on the income, employment status, credit score, loan amount, etc., interest charges can vary, thus impacting the EMIs.

• Sanctioned amount

The principal amount also plays a crucial role in determining monthly instalments. A higher advance value accumulates into a larger payable amount and therefore, increases the EMI payable.

• Tenure

Contrarily, a longer tenure can reduce the monthly payout amount and vice versa. However, an extended tenure accrues higher interest rates, and so, increases the overall cost of a loan.

However, applicants can use Bajaj Finance home loan interest rate calculator to avoid any of these confusions when estimating the EMIs.

## What are the Advantages of Bajaj Finance Home Loan Calculator?

When using Bajaj finance home loan EMI calculator, borrowers can benefit in the following ways –

• This home loan calculator is designed in a user-friendly way. Therefore, individuals can calculate EMIs conveniently.
• A home loan calculator also assists individuals to manage their financial profile by selecting the right payout amount as per their repayment capacity.
• Also, home loan calculators display the most accurate result without any chances of errors.

Aspirant home buyers should thus know how to use a Bajaj Finance home loan calculator so that they can be prepared for upcoming expenses and plan their finance accordingly. Moreover, it helps to reduce default chances as borrowers can choose the most convenient instalment option for them.

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