When you take a personal loan, it is repaid in equal instalments which are called EMIs. Your EMI consists of the amount you have borrowed, plus the interest amount charged on the loan.
How is your EMI amount decided?
The following factors are considered when your EMI is being calculated:
- How much loan you have taken
- How much interest is being charged on this amount
- How much time you have to repay the loan
- Your net monthly income
If your EMI is too high for you to comfortably manage your expenses, here are some steps you can take to bring it down:
Increase your repayment tenure
When you apply for a Bajaj Finserv Personal Loan, you get a tenure ranging from 12 to 96 months. If you choose a longer tenure, the total due amount is divided into equal payments over a longer time period. This brings down the EMI that you have to pay each month.
While increasing the loan tenure can decrease your EMI amount, you will pay a larger amount of interest overall. Find a balance by using our online calculator to get an idea of how the overall cost of your loan will change based on the tenure.
Calculate your Personal Loan EMIs
Part-prepay your loan
If you have the funds, it is a good idea to repay part of your loan early. When you make a part-payment, the principal balance of your loan goes down. Interest is then charged on this lower amount, which reduces your EMI amount in turn.
Choose a Flexi loan
Bajaj Finserv Personal Loans come with the unique Flexi facility, which comes in two variants: Flexi Term and Flexi Hybrid.
If you choose the Flexi Term variant, interest is charged only on the loan amount you are currently using, and not on the full sanction. This means lower EMIs overall.
If you choose the Flexi Hybrid variant, you get all the benefits of the Flexi Term variant, with one extra advantage. You also get the option to pay just the interest amount as EMIs for the first part of the tenure. This reduces your EMIs even more at the beginning of your repayment term, making it easy for you to repay the loan without financial stress.
Manage your personal loan EMIs easily from your ‘My Account’ profile on our website. You can make a part-prepayment, apply to convert your loan to a Flexi variant, and more, from this portal.