Bajaj Finserv has always been one of the leading financial institutions that provide one of the best financial products to the customers. A personal loan facility is one of the most preferred products among all the ones they provide. There are many individuals who opt for a personal loan to achieve their personal needs such as funding for their child’s education or marriage or buying the new gadget in the market. But there is one thing that many people forget. This thing is EMI calculation. Without having a proper estimate of the EMI amount, it would be very hard to organize your monthly spendings.
With the help of the Bajaj Finserv personal loan EMI calculator, you can easily do the EMI calculation. This is such an amazing tool to know the exact monthly amount that you will have to pay back to the lender. One of the most important factors of the EMI calculation is the Bajaj Finser personal loan interest rate because, without it, there will be no use of EMI calculation. If you are looking to opt for a personal loan from Bajaj, then don’t worry as this article will help you in getting some useful information about it. So, keep reading!
How does an EMI Calculator work?
If you ever have used any calculator, then you must have known that how a calculator works. It works on basic details that you give as input and based on the inputs given, you will get the desired output. Similarly, to use the Bajaj Finserv personal loan EMI calcualtor, you will need a few basic details which are required personal loan amount, Bajaj Finserv Personal loan interest rate, and the desired period also known as the tenure. As soon as you will feed all these details into the calculator, it will give you the exact EMI amount. Apart from this, it will also give the interest payout and total repayable amount.
You can have a look at the formula on which the EMI Calculator works below.
E = P * r * (1+r)^n / ((1+r)^n-1)
Where E is the EMI amount, P is the principal amount, R is the rate of interest and n is the duration of the personal loan.
How important Rate of Interest is in the EMI calculation?
To know the importance of EMI, you first need to know what is EMI. It is made up of the principal amount and the interest amount. So, rate of interest directly affects your EMI amount. The higher your rate of interest will be, the higher your EMI amount will be. So you also keep an eye on the rate of interest while choosing the loan. It depends on a lot of factors such as your age, monthly income, repayment capacity, existing loans, nature of your job, and most importantly your CIBIL score.
All these factors equally contribute to your final Baja Finserv personal loan interest rate. CIBIL score holds a little bit more of importance because it shows your past repayment history by which the lender can gauge your creditworthiness. Having a high CIBIL score gives you the reward of the lower interest rate.