Bajaj Housing Finance Loan Against Property Balance Transfer EMI Calculator

All EMIs consist of 2 parts. The first being the repayment of the principal amount that has been borrowed. The second is the interest that has been charged on the borrowed principal amount. Accordingly, your EMI is calculated based on 3 factors – The amount borrowed (principal amount), the tenure of repayment, the interest rate charged on the principal amount.

EMI amounts will decrease if there is a drop in the interest rate charged. You can also pro-actively bring down the EMI amount by making partial pre-payments of the borrowed principal amount.

You can easily increase the amount you pay in EMIs by visiting our Customer Portal.

An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the break-up of every EMI towards repayment of interest and the outstanding principal of your loan.

When interest rates go up, the interest component of an EMI also goes up. The EMI is kept constant but will result in a lower principal component. If the rates move up continuously, then there might be a situation where the interest Component becomes more than the EMI. In such a situation, principal component (EMI minus interest component) gives a negative figure. Consequently, the outstanding balance, instead of being reduced from the opening principal with the principal component, gets increased with the negative principal component. This is commonly referred to as negative amortization. A loan where the amortization is negative does not get repaid, since the regular payments are insufficient to cover the interest component. The unpaid interest gets added to the principal and makes it grow. The situation gets reversed only when interest rates start falling. In this situation, the customer has to part-prepay the loan amount, increase the EMI of the loan, or do both.

In case of a loan with a floating interest, the interest component is subject to change. When the rates change, one of the following two changes can be done to a loan: 1. The term of the Loan is extended (when rates go up) or contracted (when rates go down). 2. The EMI amount is reset (increased in case rates go up & reduced in case rates come down). As a practice, the term of the loan is extended since the customer might have given post-date cheques and it would be difficult to replace them on every rate change. However, in case of under construction properties, the Pre-EMI amount is increased by default. You can choose any of the above options according to your convenience. The default option is to change the EMI to match the balance tenure of a loan.