Home Loan EMI Calculator

The Bajaj Finserv Home Loan EMI Calculator is an online tool to help you calculate your Home Loan EMI. While one can perform these calculations manually, they can be complex and time-consuming, and there’s always the possibility of errors.

To use the EMI calculator, enter your desired loan amount, tenor, and interest rate, either with the help of the slider or by inputting values directly in the boxes. The Home Loan Calculator will subsequently show you your total interest payable, total payable, and Home Loan EMI.

Bajaj Finserv offers Home Loan starting at 6.65%*, with EMIs from Rs.642/Lakh*. Moreover, you can avail of sizable funding, a sizable top-up loan, and a repayment tenor of up to 30 years. With the Bajaj Finserv EMI calculator for a home loan, applicants can easily check the EMI payable with only a few basic entries.

What is Home Loan EMI Calculator?

A Home Loan EMI calculator helps you check your home loan EMI before you apply for a loan. It serves as a financial planning tool that enables you to make an informed decision. The calculator helps you complete complex calculations accurately as well as quickly.

What is Home Loan EMI?

The word EMI stands for ‘Equated Monthly Instalment.’It refers to the sum you have to pay every month towards the repayment of your home loan principal as well as interest. The amount varies as per the loan amount, tenor, and interest rate. You can reduce Home Loan EMI by increasing your tenor. We offer a tenor of up to 30 years.

Home Loan EMI Calculation:

Calculating the EMI on your home loan is quite easy using a home loan EMI calculator. Simply enter the loan amount you wish to take, tenor, and the rate of interest in the respective fields.

You can also calculate the EMI on home loan manually using the below formula.

To calculate home loan EMI, the formula used is P x R x (1+R)^N / [(1+R)^N-1]

where, P = Principal amount, N = Loan tenor in months, and R = Monthly interest rate

If the annual rate of interest is 6%, the value of ‘R’ will be 6/(12 x 100) = 0.005

On availing of a home loan of Rs. 40 lakh at an annual interest rate of 6.00% for a tenor of 240 months (20 years), the EMI will be calculated as:

EMI = 40,00,000 * 0.005 * (1 + 0.005)240 / ((1 + 0.005)240 - 1) = Rs. 28,657

  • The total payable amount to lender is Rs. 28,657 * 240 months = Rs. 68,77,800
  • The principal loan amount is Rs. 40 lakh
  • The Interest to be paid is Rs. 28,77,800

As is evident, calculating the EMI manually is time consuming and challenging. Instead, use the Bajaj Finserv Home loan EMI Calculator to calculate your EMI with ease.

Factors that affect your home loan EMI

Below are the major factors that affect the EMI of your home loan:
  • Principal: The principal refers to the amount you borrow from the lender. It is directly proportional to your EMIs, i.e., the lower the principal, the lower will be your monthly instalments and vice versa. You can use the home loan eligibility calculator to know the principal amount you are eligible for
  • Rate of interest: The home loan interest rate is the rate at which the lender offers you the home loan. It is also directly proportional to the value of your home loan EMIs
  • Tenor: The tenor is the time within which you repay your home loan. It is inversely proportional to your loan EMIs, i.e., the longer the tenor, the smaller your EMIs. But it is important to remember that a longer tenor translates to a high interest outgo

How Calculation of EMI helps in planning a home purchase?

A Home Loan EMI Calculator shows you your EMI and the total interest payable over your chosen tenor. This information is key in deciding whether a given housing loan amount and tenor are affordable for you since you need to finalise a home loan such that you are able to pay your EMIs comfortably.

Thus, to be equipped with all necessary information before you proceed with the home buying decision, it’s important you check your home loan eligibility and use an online tool for home loan EMI calculation.

How to use Bajaj Finserv Home Loan EMI Calculator?

Our Home Loan EMI Calculator is accurate, quick, and most importantly, easy to use. You only need to enter the loan amount, tenor, and interest rate to view the total interest payable, as well as your EMI. If you are finding the EMI amount too high, opt for a longer tenure. This can also help you in enhancing the eligibility of your housing loan.

What are Bajaj Finserv Home Loan’s Key Features and Benefits?

  • Sizeable loan amount and competitive interest rate starting from 6.65%* (home loan EMI from Rs.642/Lakh*)
  • Home loan linked to external benchmarks, such as the RBI repo rate
  • Avail the housing loan with an interest subsidy of up to 6.50% under the PMAY scheme
  • Avail of a sizeable top-up loan of Rs. 1 Cr* or higher, basis eligibility on home loan balance transfer to Bajaj Finserv
  • Flexible repayment options, with a tenor of up to 30 years
  • Minimal document and quick processing and disbursal
  • Online account management with our online Customer Portal
  • Zero prepayment and foreclosure charges for individuals with floating interest rate home loans
  • Most favourable borrowing terms on 5,000+ approved projects

How Does a Longer Tenure Help in Enhancing the Amount Eligibility?

For an enhanced loan amount eligibility, you need to showcase your ability to repay the loan over your chosen tenor. Here, your existing income and obligations are assessed to understand how much you can comfortably set aside for loan repayment every month. In other words, you need to be able to prove your ability to pay your EMIs comfortably, with minimal risk of default.

It is, of course, easier to repay smaller EMIs. By proving a strong ability to repay the owed sum, you reduce the risk element of your application. To reduce your EMI amount and, ultimately, increase home loan eligibility, opt for a longer tenor (up to 30 years). When you spread out your loan repayment over a longer period, the principal amount is broken into smaller bits. Here, it is important to note that the total interest amount you pay over the tenor increases substantially since the interest rate is compounded annually and now applicable over those many more years.

To begin with, estimate EMIs of your housing loan. While you can do this manually, it’s better to opt for an online tool, such as the Home Loan calculator, to ensure accuracy. While it’s important you choose a longer tenor to pay lower EMIs, you can better know the exact tenor suitable for you with this calculator. Check your EMI payable and interest outflow for different tenors and finalise on one where your EMIs are affordable yet your interest outflow is at the least possible.

What is the impact of part payments on your EMI?

Part payments go towards the repayment of the original sum borrowed. In other words, your principal amount reduces with part-prepayment. A lower principal amount also translates to lower interest outflow, since the home loan interest rate is now applicable on a smaller sum, and subsequently, lower Equated Monthly Instalments (EMI).

You can make the most of savings through an earlier home loan repayment by either reducing your tenor and becoming debt-free sooner, or reducing your EMI amount and making your monthly obligation that much easier to bear. Use a home loan prepayment calculator to check your foreclosure/prepayment amount. It is advisable to pay the amount beforehand, so you can plan your finances well in advance.

Frequently asked questions

What does an EMI mean?

EMI stands for Equated Monthly Instalment. It is the sum you pay every month to repay the principal amount owed and pay the interest applicable. The EMI depends on a number of factors, including the loan amount, the tenor, and the interest rate.

If you anticipate you will have surplus finances, opt for a shorter tenor. While your EMIs will be high, you can become debt-free sooner. On the other hand, if you are on a tight budget, it is more advisable to opt for a longer tenor. While your total interest outflow increases, your EMI decreases.

Use a Home Loan EMI Calculator to check the EMI amount applicable in your case.

Advantages of using a Home Loan Calculator

An EMI Calculator helps in financial planning for those looking to avail of a housing loan. One can check their EMI amounts by inputting the loan amount, tenor, and the applicable interest rate. This helps you assess if the EMI amount is in fact affordable and, by extension, helps you decide which loan amount and tenor are suitable for you as per your financial situation.

In this way, an EMI Calculator for a home loan helps you finalise the right home loan amount and ensure timely home loan payments. Use an Online EMI Calculator to check the home loan best suited to your profile.

What is a home loan amortization schedule?

A home loan amortization schedule is a record of all the periodic payments on your home loan. Amortization is basically the procedure of repaying a loan through regular payments over a specified period of time. An amortization schedule is the total tally of loan payments showing the amount of interest and principal contained in each payment until the loan is repaid in full.

How does Home Loan Repayment work?

Home Loan repayment refers to the process of repaying your entire loan (principal plus interest) over the agreed-to timeframe. Your repayment primarily depends on the timely payment of your Equated Monthly Instalments (EMI). Your EMI amount depends on the loan amount, the tenor chosen, and the home loan interest rate.

To repay your loan earlier than planned, you will need to make part prepayments or completely foreclose the loan with one lump sum payment. In case you have surplus funds and choose to become debt-free sooner, use our home loan repayment Calculator to know the sum payable. This is important since a home loan is a sizable sum, which necessitates planning and research.

What are the tax benefits on home loan EMI repayment?

As a first-time homebuyer, it’s important you understand home loan tax benefits to ensure savings, where possible. The tax benefits of availing a home loan are:

  • Up to Rs. 1.50 lakh of your Home Loan EMI’s principal component is non-taxable as per Section 80C
  • You can also avail of a deduction on your home loan interest, i.e., the interest component of your EMI, under Section 24(b). If the property is self-occupied, the deduction is capped at Rs.2 Lakh, and if the property is let out, the actual interest is eligible (no upper limit). Deductions for housing loan for reconstruction, repair, and renovation, are capped at Rs. 30,000
  • After exhausting deductions under Section 24(b), first-time homebuyers can also avail of an additional deduction of Rs. 50,000 under Section 80EE

You can check your eligibility for these deductions by assessing your EMI bifurcation with our online calculator.

Can I avail home loan for home renovation or home extension?

Bajaj Finserv offers Home Loans for property extension; for instance, if you wish to add another floor to an existing property. For Home Loan for renovation, you can avail of a top up loan on an existing home loan through a balance transfer. For instance, if you have a home loan running with another lender, you can transfer the balance amount to Bajaj Finserv and avail of a sizeable top-up amount of Rs. 1 Cr*, or higher, basis eligibility.

This amount comes free of end-use restrictions and can be used to renovate your property. The top-up amount is provided at a relatively low interest rate, which is typically only 1% higher than the rate applicable on your home loan. Thus, the impact on your Home Loan EMI is limited to an extent.

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