Making large expenses from savings may not always be possible. Wedding expenses, funding your child’s higher education or even renovating your home, are some such large expenses that you may not be able to cover with your savings. To ease the financial stress of such heavy expenses, one can always take out a loan. Let us understand the meaning of loans and how they work.
What is a loan?
A loan is an arrangement between a lender and a borrower in which the borrower agrees to pay back the borrowed sum in equated monthly instalments (EMIs) with an additional interest within a pre-set tenure. It is a short-term infusion of cash that must be repaid later, usually the principal and the interest payable. Know more about our personal loan
What is an EMI?
EMI stands for equated monthly instalments. It is a fixed amount of money that borrowers need to pay to the lender every month, to repay their loan. EMIs help borrowers to repay their debt in a systematic and structured manner over a specific loan period.
How is an EMI calculated?
You can compute your monthly payments using a mathematical formula as follows:
E = P*r*(1+r) ^n/((1+r)^n-1) where,
- E is EMI
- P is the principal loan amount,
- r is the rate of interest calculated monthly, and
- n is the tenure/ duration in months
What are the factors that influence your EMI payments?
The following are the factors that can influence your EMI:
Principal borrowed: This is the total loan amount that the borrower has taken out.
Loan interest rate: This is the interest rate applied to the amount borrowed.
Tenure: The length of the loan, or the tenure, is determined by the borrower and the lender.
What are the types of loans offered by Bajaj Finance?
Bajaj Finance offers a diverse range of unsecured loans including personal loan, Insta Personal Loan, gold loan, business loan, doctor loan, and more. We also have a portfolio of automotive loans such as two-wheeler finance and used car finance.
Personal loan is one of the most popular products offered by Bajaj Finance. These loans are unsecured, which means customers do not need to pledge any collateral or need a guarantor to avail of one. Additionally, our personal loans come with no restriction on end-usage. Borrowers can get Bajaj Finserv Personal Loan of up to Rs. 55 lakh with minimal paperwork and quick approval. These loans have a flexible repayment term ranging from 84 months to 96 months. Bajaj Finance offers personal loans with 3 unique variants to its customers, including:
- Term loan: A term loan, is a regular personal loan, where you borrow an amount for a fixed period and repay it with fixed EMIs every month.
Know more about term loans
- Flexi Term Loan: With a Flexi Term Loan, you can borrow the amount from a sanctioned loan limit as many times as you need. Additionally, you pay interest only on the amount that you have utilised, and not the entire sanctioned limit.
Know more about our Flexi Term Loan - Flexi Hybrid Loan: This variant of a personal loan functions just like the Flexi Term Loan. The only distinction is that your EMI will be only of the interest amount during the initial tenure.
How to calculate personal loan EMIs online?
You can use the personal loan EMI calculator to compute your EMI payments. It is an online tool that helps you figure out your monthly payments without having to do the complicated calculations manually. By using this calculator, you can plan your finances effectively in advance.
Use Bajaj Finserv Personal Loan EMI Calculator to compute your EMIs instantly without any hassle.
