Using a loan EMI calculator before you apply for any type of credit is ideal, as it helps you decide on favourable loan terms. This easy-to-use tool helps you estimate your borrowing costs within seconds.
You can access this free tool across several websites of banks, lenders and financial marketplaces. However, the Bajaj Markets: EMI Calculator App is an all-in-one solution. You can access calculators for different unsecured and secured loans in one place and use them any number of times with ease.
Here are 4 ways to reduce your loan EMI by making use of this calculator.
Helps You Choose a Suitable Loan Amount
Your loan amount is the key factor in determining your EMI. Applying for a higher loan will increase your EMI as the two share a directly proportional relationship. Hence, borrowing what you can afford is a smart strategy to follow.
Create a budget to determine the right range for your loan’s monthly instalment. Keeping this amount in mind, you can use a loan EMI calculator to determine the maximum loan amount you need to apply for.
Helps You Decide the Ideal Tenure
The loan tenure is inversely proportional to the EMI amount. When you increase your tenure, your EMIs decrease. So, if you want to save more on EMIs, opt for a longer tenure.
Here is how EMI amounts vary across different tenures if you take a personal loan of ₹7.5 Lakhs at an interest rate of 10.50% p.a.
| Tenure | Monthly EMI | Total Amount Payable[EW1] |
| 6 months | ₹1,28,856 | ₹7,73,135 |
| 12 months | ₹66,111 | ₹7,93,337 |
| 18 months | ₹45,216 | ₹8,13,882 |
| 36 months | ₹24,377 | ₹8,77,566 |
Disclaimer: The rates and other details mentioned are for illustrative purposes. Actual values may vary.
As you can see, choosing a longer tenure does enable you to reduce your monthly instalments. However, there is another point to consider. While your EMIs may decrease, the overall interest outgo increases when you opt for a lengthier timeline.
So, consider all the pros and cons before zeroing in on a tenure using the Bajaj Markets: EMI Calculator App and make a well-informed decision.
Helps You Opt for Lower Interest Rates
Another critical factor determining your loan EMI is the interest rate. Choosing a lender with the lowest interest rate allows you to automatically lower your EMIs.
This is where a loan EMI calculator comes in handy.
By keeping your amount and tenure fixed, you can calculate the impact of varying interest rates on your loan terms. Simply enter all the details in the calculator and keep changing the value of the interest rate.
Here is how your interest rates affect your EMIs when you get a loan of ₹5 Lakhs for 36 months.
| Interest Rates (per annum) | Monthly EMI | Total Amount Payable[EW2] |
| 10.50% | ₹16,251 | ₹5,85,044 |
| 10.99% | ₹16,367 | ₹5,89,212 |
| 11.99% | ₹16,605 | ₹5,97,772 |
| 12.99% | ₹16,845 | ₹6,06,404 |
Disclaimer: The rates and other details mentioned are for illustrative purposes. Actual values may vary.
Helps You Manage Loan Prepayment
Some EMI calculators also offer an amortisation schedule for your loan. This shows a detailed breakdown of your principal, interest and outstanding loan after every repayment.
This schedule can tell you exactly when you can prepay your loan to save more on interest, reduce your outstanding balance and shorten your repayment tenure. It can also help you plan foreclosure. All you need to do is calculate any prepayment charges that the lender may add when planning this.
Following these tips, you can take the right steps to reduce your loan EMI using the Bajaj Markets: EMI Calculator App. Simply download the app on your device and manage your finances seamlessly.
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