How to calculate your home loan EMI after RBI's rate cut
The RBI's repo rate reduction presents homeowners an opportunity to lower EMIs significantly.
Are you paying too much on your home loan? The Reserve Bank of India has just announced its second consecutive repo rate cut that could save you thousands of rupees monthly. Many homeowners remain unaware of what this rate reduction means for their EMI payments.
This reduction arrives at a crucial time when household expenses continue to rise and presents a valuable chance to reduce monthly outgoings and improve financial stability. Want to know exactly how much you can save? The Bajaj Finserv Home Loan EMI Calculator gives you instant answers without complex computations.
Why RBI's rate cut matters for your home loan
Banks and financial institutions like Bajaj Finserv link their lending rates to external benchmarks like the repo rate. So, when the RBI cuts this benchmark rate, they must pass on the benefit to borrowers within three months. As a result, the 25 basis points reduction to 6% has immediate effects on floating interest rate home loans, which adjust based on market conditions.
Every home loan borrower should immediately recalculate their EMI to reveal the potential savings from the recent monetary policy change. When interest rates fall, your EMI decreases, or your loan tenure shortens, depending on your preference. Your savings depend on your outstanding loan amount and remaining tenure. So, using a home loan EMI calculator, you can determine your exact new payment.
Consider a home loan of Rs. 50 lakh with a 20-year tenure. Even a small 0.25% reduction in interest rates can reduce your EMI by approximately Rs. 800 per month. This amounts to nearly Rs. 1.92 lakh in savings over the full loan term.
Recalculating your EMI promptly enables better financial planning, whether you choose to lower your EMI or maintain it and reduce your loan tenure instead. The latter strategy helps you become debt-free faster while saving even more on interest payments.
If you are looking to benefit from these reduced rates with a new home loan, apply seamlessly on the Bajaj Finserv website or via the official app. New borrowers receive interest rates starting at a competitive 7.99% p.a., with loan amounts up to Rs. 15 crore available based on eligibility.
How to calculate your new EMI with a home loan EMI calculator
For existing Bajaj Finserv Home Loan customers with floating interest rates, the reduction applies automatically. However, if you have an existing home loan with another lender, or considering a fresh home loan, new EMI calculations can help you understand exactly how much you can save.
The Bajaj Finserv Home Loan EMI Calculator is an online tool that provides instant and accurate results, eliminating the need for complex manual calculations. It considers your loan amount, tenure, and the revised interest rate to determine your new EMI. You receive a complete breakdown of principal and interest components over the loan tenure.
Steps to use the home loan EMI calculator
- Visit the home loan EMI calculator tool on the Bajaj Finserv website.
- In the designated field, enter your:
- Loan amount
- Tenure in years
- Revised interest rate after the RBI cut
Your new EMI amount will automatically appear, along with the total interest payable, the total amount payable, and the complete amortisation schedule. You can also adjust the figures to explore different scenarios and find the best option for your financial situation.
Remember, repeated calculations whenever rates change can help you make the most of your financial benefits.
Why choose a Bajaj Finserv Home Loan
Bajaj Finserv offers home loans with competitive interest rates starting at 7.99% p.a. You can borrow up to Rs. 15 crore based on your eligibility, with flexible repayment tenures extending up to 32 years. Using the home loan EMI calculator, you can determine your ideal loan parameters before applying. Once satisfied with the calculation for your ideal home loan, apply online in just minutes.
Additional benefits
- Zero foreclosure fee for individual borrowers with floating interest rates. Close your plan early without additional charges when funds become available.
- Approval in 48 hours* for eligible salaried and self-employed applicants because Bajaj Finserv understands the importance of timely home financing.
- Balance transfer and top-up loans up to Rs. 1 crore so existing home loan borrowers from other lenders can switch to Bajaj Finserv for better rates.
- Minimal documentation and doorstep collection eliminate the need for branch visits and make the entire application process seamless.
How to apply for a Bajaj Finserv Home Loan
- Visit the home loan page on the official website and click on 'APPLY'.
- Enter your name, mobile number, and employment type, and select your loan type.
- Generate an OTP and use it to verify your mobile number.
- Share additional information, like your monthly income, required loan amount, and property details.
- Provide your date of birth, PAN, and other details based on your selected occupation type.
- Click on 'SUBMIT' and await contact from a Bajaj Finserv representative, who will lead you through the remaining steps.
How to maximise your savings
- Recalculate your EMI after every RBI policy change using the home loan EMI calculator so you are up-to-date on potential savings opportunities.
- Opt for longer tenure only if your budget demands it. While they reduce monthly payments, longer tenures increase total interest outflow.
- Use part-prepayment facilities when extra funds become available. Bajaj Finserv allows prepayments without additional charges for floating-rate loans.
- Maintain a solid 750+ CIBIL Score to qualify for the best interest rates. Regular credit monitoring helps ensure favourable loan terms.
The RBI rate cut presents a valuable chance to reduce your monthly financial burden. Use the Bajaj Finserv Home Loan EMI Calculator to know exactly how much you stand to save with current interest rates starting at 7.99% p.a. Combined with the flexible tenure and substantial loan amounts, this makes Bajaj Finserv Home Loans an attractive option. Their streamlined application process further enhances the borrowing experience.
Financial stability begins with smart borrowing decisions. Take action today to benefit from these reduced rates by trusting Bajaj Finserv to support your homeownership journey. Apply now. Or miss out on securing substantial savings.
Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.
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