Thanks to the easy accessibility of digital lenders and online financial marketplaces, you can get instant funds to meet various needs, be it financing education or medical treatment, buying a home or a vehicle and more. However, planning your finances is vital to help ensure repayment is as easy as getting a loan.
A simple way to do this is to use an EMI calculator. This tool allows you to compare multiple options and choose one that fits your budget. No matter which loan you decide on, the Bajaj Markets: EMI Calculator App makes deciding between top lenders easy and quick.
Here are all the ways you can use this tool for planning your loan terms and repayment.
Calculating EMI and Total Payable Amount
Taking a loan adds to your financial obligations, so calculating the EMIs and payable interest is vital. This gives you an estimate of the liability you are taking on, which helps you plan how you can make room for it in your budget. By understanding the total cost of borrowing, you can also keep your future obligations in mind.
Comparing Interest Rates
The interest rate significantly impacts your total repayment amount and EMIs. So, comparing them is essential. Using an EMI calculator can help you choose the most pocket-friendly option, as even a small difference in rates can have a big impact on your overall interest.
For instance, if you’re borrowing a personal loan of ₹30,000 for 12 months, here are your monthly instalments and total payable dues as per changes in the interest rate.
| Interest rates (per annum) | Monthly EMI | Total Amount Payable |
| 10.99% | ₹2,651 | ₹31,816 |
| 11.99% | ₹2,665 | ₹31,984 |
| 12.99% | ₹2,679 | ₹32,153 |
| 13.99% | ₹2,693 | ₹32,322 |
| 14.99% | ₹2,708 | ₹32,491 |
Disclaimer: The rates and other details mentioned are just for illustrative purposes. Actual values may vary.
Deciding on a Suitable Tenure
Your EMI amount also depends on the tenure you choose. To better understand the relationship between EMI and tenure, consider this example.
Say you get a personal loan of ₹30,000 at an interest rate of 10.49% p.a. Here’s how the EMI and total amount will change for various tenures:
| Tenure | Monthly EMI | Total Amount Payable |
| 6 months | ₹5,154 | ₹30,925 |
| 12 months | ₹2,644 | ₹31,732 |
| 18 months | ₹1,808 | ₹32,553 |
| 24 months | ₹1,391 | ₹33,387 |
| 30 months | ₹1,141 | ₹34,236 |
Disclaimer: The rates and other details mentioned are just for illustrative purposes. Actual values may vary.
Given this, ensure that the term you choose results in a manageable repayment amount per your budget. With an EMI calculator, you can do this in just a few clicks.
Make Quick and Error-Free Calculations
While you can do all these calculations manually, they are time-consuming, tedious and may be prone to errors. Planning your loan terms with incorrect estimates can lead to challenges during repayment as you may not have budgeted for it correctly.
As such, accurate calculations are necessary, which is where the EMI calculator can help. This tool is automated and gives error-free results. It also allows you to change the terms until you arrive at EMIs that suit your finances.
Plan Your Prepayment
The Bajaj Markets EMI Calculator shows your monthly EMI, total interest, and total amount payable in an easy-to-understand visual format. In addition, it shows a generalised amortisation schedule that gives you the outstanding balance after every payment.
This schedule can be useful for you to plan prepayment as you can understand where your savings on interest would be maximised. Based on this, you can save up to prepay and become debt-free before the loan tenure ends.
Using the Bajaj Markets EMI calculator is not complicated. Simply choose your loan type and enter all the values in the designated tabs to calculate your EMIs. You can then compare the EMI for different offers and apply for one that best fits your needs. Download the app from the App Store or the Google Play Store and start planning your loan today!
