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Pay lower EMIs with Bajaj Finserv Flexi Hybrid Loan Against Property

  • Highlights

  • Reduction in EMI outgo

  • Pay only the interest component as EMI

  • Interest charged only on the amount utilised

  • Leads to savings to address other life goals

The rising cost of living has put many things out of reach for the common man. Some of these things are necessary, while others may be aspirational. To fulfill the various demands of life, many people take to loans as a recourse. But with loans, come equated monthly instalments or EMIs.

The amount of EMI that will be paid once the loan is taken plays a major role in deciding whether the individual opts for a particular loan or not. Usually, the amount of EMI is inversely proportional to the tenor. That is, the longer the tenor the lower will be the EMI. Also, EMIs of most loans consist of the principal and interest component.

However, that is not the case with the Bajaj Finserv’s Loan Against Property as it is equipped with the Flexi Hybrid feature that allows you to pay only the interest component of the EMI.

An Example

To better illustrate how the Flexi Hybrid feature works in Bajaj Finserv’s Loan Against Property, let us take the help of an example. Assuming that a loan has been sanctioned for an amount of Rs.10 lakh, but the amount utilized is only Rs.5 lakh. The loan is taken with an interest rate of 15% and is payable over a tenor of 5 years.

In a term loan, the EMI will come up to Rs.23,790, which translates to an annual outgo of Rs. 2,85,480. But, in a loan with Flexi Hybrid feature only the interest component is payable, which comes up to Rs.7,500, and an annual cash outflow of just Rs.90,000.

As you can see, the difference in the annual outgo is Rs.1,95,480. This is just one of the ways in which the Flexi Hybrid feature reduces the EMI amount and gives you ample time to pay the principal later when you have excess funds.

Pay Interest only on Amount Used

The interest rates on loan against property are normally calculated on the entire borrowed amount. Let us assume that a term loan has been taken for the amount of Rs.10 lakh at the interest rate of 16%, and for the time being, even if you, the borrower, have a requirement of only Rs.5 lakh, you will be charged interest on the entire amount of Rs.10 lakh. This is not the case with the Loan Against Property from Bajaj Finserv. This is because the Flexi Hybrid feature ensures that the interest is calculated on the ‘amount used’ and not the ‘amount borrowed’.

So, the interest of 16% will be calculated on the requirement of Rs.5 lakh and not the entire amount, thus helping further reduce the amount of EMI paid. Thus, the Flexi Hybrid feature is a great way of reducing your EMI outgo amount.
Additional Read: A Step By Step Guide To Apply For An Loan Against Property

It helps you by allowing you to initially pay interest and deal with the principal amount later, when you have money to spare. This feature lets you save money initially so that you use it to address life’s other financial needs.

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