A home loan of up to Rs. 15 crore* from Bajaj Finance starts at 7.25%* p.a. – use an EMI calculator to compare tenure and total repayment before you sign.
In summary
Your home loan EMI is what you pay each month. But the number you see on a lender’s website tells you very little about what the loan actually costs. Total interest, tenure length, and when you make prepayments all shape your final outgo more than the EMI alone.
With Bajaj Finance, home loan amounts go up to Rs. 15 crore*, interest rates start at 7.25%* p.a. for salaried applicants, and repayment tenures extend to 32 years*. Using a home loan EMI calculator, you can see your EMI, total interest, and full amortisation schedule before you commit. This article covers how EMI is calculated, how amortisation works, and what prepayment actually does to your loan.
Why your EMI is only one part of the cost
Many borrowers compare home loans by monthly EMI alone. This is a reasonable starting point, but it can lead to choices that cost more over time.
A lower EMI often means a longer tenure. A longer tenure means more months of interest. The total you repay can be significantly higher, even if the monthly amount feels comfortable.
The real decision involves three variables working together: what you can afford monthly, what you want to pay in total interest, and how quickly you want to be debt-free. Focusing on one can pull the others in an unfavourable direction.
| If you focus on | You may overlook |
| Lowest EMI | Higher lifetime interest |
| Short tenure | Higher monthly commitment |
| Lower rate | Effect of repayment timing |
| Prepayment | Potential interest savings |
How does a home loan EMI calculator help you decide?
A home loan EMI calculator takes three inputs:
- Loan amount – the principal you plan to borrow
- Interest rate – the annual rate offered by the lender
- Tenure – the number of years over which you repay
It then shows you what your repayment looks like in full:
- EMI – your fixed monthly payment
- Total interest – the full interest cost over the loan period
- Total repayment – principal plus total interest
- Amortisation schedule – a month-by-month breakdown of how much goes to principal and how much to interest
Consider Ananya, 31 years old, a salaried employee in Pune with a CIBIL Score of 760. She plans to borrow Rs. 15 lakh at an offered rate of 7.30% p.a. She uses the calculator to compare her Rs. 15 lakh home loan EMI for two tenure options before deciding.
| Tenure | EMI | Total interest | Total repayment |
| 10 years | Rs. 17,649 | Rs. 6.18 lakh (approx.) | Rs. 21.18 lakh (approx.) |
| 20 years | Rs. 11,901 | Rs. 13.56 lakh (approx.) | Rs. 28.56 lakh (approx.) |
The 20-year option gives Ananya a lower monthly outgo. But she pays roughly Rs. 7.38 lakh more in total interest. The calculator makes this trade-off visible before she commits.
Read the amortisation schedule before choosing your tenure
Amortisation is the process of paying off a loan in equal instalments over time. Each EMI contains two components: a portion that reduces your principal, and a portion that pays interest.
In the early years of a home loan, most of your EMI goes towards interest. The principal repayment share is small. As time passes, this balance shifts. In the later years, most of your EMI reduces the principal.
| Loan phase | Interest share | Principal share |
| Initial years | Higher | Lower |
| Middle years | Balanced | Balanced |
| Later years | Lower | Higher |
This matters because if you prepay or close the loan early, you do so after having paid a disproportionately large portion of the interest. Understanding this can help you decide when prepayment is most valuable.
Here is how Ananya’s 10-year loan at 7.30% p.a. on Rs. 15 lakh breaks down at key points:
| Year | Principal (A) | Interest (B) | EMI (A+B) | Balance |
| Year 1 | Rs. 1,05,782 | Rs. 1,06,007 | Rs. 2,11,789 | Rs. 13,94,218 |
| Year 5 | Rs. 1,41,527 | Rs. 70,262 | Rs. 2,11,789 | Rs. 8,84,974 |
| Year 10 | Rs. 2,03,647 | Rs. 8,142 | Rs. 2,11,789 | Rs. 0 |
In Year 1, more than half of Ananya’s annual repayment goes to interest. By Year 10, it is almost entirely principal. A prepayment made in Year 1 or Year 2 saves significantly more interest than the same prepayment made in Year 8.
What happens when you make a prepayment?
A prepayment is any amount you pay over and above your regular EMI. It reduces the outstanding principal, which in turn reduces the interest calculated on the remaining loan. You can use the home loan prepayment calculator available on the Bajaj Finance website to estimate the effect.
After you make a prepayment, you can ask your lender to do one of two things: recalculate your EMI downward while keeping the tenure the same, or keep the EMI the same and reduce the remaining tenure.
Continuing with Ananya’s example: At the end of Year 1, she makes a one-time prepayment of Rs. 1 lakh from her annual bonus.
| Option | Effect |
| Reduce tenure | Loan closes earlier; total interest falls; monthly EMI stays the same |
| Reduce EMI | Monthly commitment drops; total interest savings are lower; loan runs for original tenure |
When should you reduce EMI instead of tenure?
The better choice depends on your income pattern and monthly commitments:
Consider reducing EMI if:
- Your monthly cash flow is already stretched across rent, school fees, or other loan EMIs
- Your income varies month-to-month, such as with commissions or a business
- You want a financial cushion for unexpected costs
Consider reducing tenure if:
- Your income is stable, and your monthly outgo is manageable
- Your main goal is reducing the total interest you pay
- You are in the early years of the loan, where interest savings from early closure are highest
Neither choice is wrong. Both have a place depending on your financial position at the time of prepayment.
How Bajaj Finance supports home loan and repayment planning
Bajaj Finance offers home loans of up to Rs. 15 crore* with interest rates starting at 7.25%* p.a., and repayment tenures up to 32 years*. You can also use financial tools like the home loan EMI calculator to plan your home loan and model the effect of part-prepayments on your EMI with the prepayment calculator.
For borrowers transferring an existing home loan, Bajaj Finance offers a balance transfer facility with rates starting at 7.30%* p.a. and a top-up loan of up to Rs. 1 crore*, with end-use flexibility.
Individual borrowers on floating-rate loans pay no foreclosure or part-prepayment charges, which means you can repay ahead of schedule without any added cost.
Who can apply?
Checking your eligibility before applying can help you prepare the right documents and avoid delays.
| Criterion | Details |
| Nationality | Indian citizen residing in India |
| Age | 23 to 67 years (salaried) 23 to 70 years (self-employed) |
| CIBIL Score | 725 or above |
| Eligible occupations | Salaried employees, professionals, and self-employed individuals |
| Documents required | KYC documents Income proof (salary slips/ P&L statements) Business proof (self-employed applicants only) Bank statements for the last 6 months Property documents |
Online application process
- Click the ‘APPLY’ button on the Bajaj Finance Home Loan page.
- Enter your full name, mobile number, and employment type.
- Select the type of loan you wish to apply for.
- Generate and submit your OTP to verify your mobile number.
- Enter details such as your monthly income, required loan amount, and whether you have identified the property.
- Enter your date of birth, PAN, and other details based on your occupation type.
- Submit your application and await contact from a Bajaj Finance representative who will take you through the next steps.
Things worth checking before you borrow
- Compare at least two tenure options and their total repayment figures, not just the EMI.
- Read the amortisation schedule to understand how much interest you pay in the early years.
- Decide in advance how you will handle prepayments – reduce EMI or reduce tenure.
- Estimate monthly affordability after accounting for all existing financial commitments.
- Understand whether your rate is fixed or floating, and what changes if the repo rate moves.
- Review all applicable charges, including processing fees, bounce charges, and any applicable prepayment fees.
Before you apply, run the numbers
A lower EMI is not automatically a lower-cost loan. A longer tenure saves you money each month but can add several lakh rupees in total interest over time. The most useful thing you can do before applying is to compare tenures, read your amortisation schedule, and plan how you will use prepayments. Use the Bajaj Finance Home Loan EMI Calculator to see your full repayment picture, then explore home loan options that fit your financial position.A home loan of up to Rs. 15 crore* from Bajaj Finance starts at 7.25%* p.a. – use an EMI calculator to compare tenure and total repayment before you sign.
In summary
Your home loan EMI is what you pay each month. But the number you see on a lender’s website tells you very little about what the loan actually costs. Total interest, tenure length, and when you make prepayments all shape your final outgo more than the EMI alone.
With Bajaj Finance, home loan amounts go up to Rs. 15 crore*, interest rates start at 7.25%* p.a. for salaried applicants, and repayment tenures extend to 32 years*. Using a home loan EMI calculator, you can see your EMI, total interest, and full amortisation schedule before you commit. This article covers how EMI is calculated, how amortisation works, and what prepayment actually does to your loan.
Why your EMI is only one part of the cost
Many borrowers compare home loans by monthly EMI alone. This is a reasonable starting point, but it can lead to choices that cost more over time.
A lower EMI often means a longer tenure. A longer tenure means more months of interest. The total you repay can be significantly higher, even if the monthly amount feels comfortable.
The real decision involves three variables working together: what you can afford monthly, what you want to pay in total interest, and how quickly you want to be debt-free. Focusing on one can pull the others in an unfavourable direction.
| If you focus on | You may overlook |
| Lowest EMI | Higher lifetime interest |
| Short tenure | Higher monthly commitment |
| Lower rate | Effect of repayment timing |
| Prepayment | Potential interest savings |
How does a home loan EMI calculator help you decide?
A home loan EMI calculator takes three inputs:
- Loan amount – the principal you plan to borrow
- Interest rate – the annual rate offered by the lender
- Tenure – the number of years over which you repay
It then shows you what your repayment looks like in full:
- EMI – your fixed monthly payment
- Total interest – the full interest cost over the loan period
- Total repayment – principal plus total interest
- Amortisation schedule – a month-by-month breakdown of how much goes to principal and how much to interest
Consider Ananya, 31 years old, a salaried employee in Pune with a CIBIL Score of 760. She plans to borrow Rs. 15 lakh at an offered rate of 7.30% p.a. She uses the calculator to compare her Rs. 15 lakh home loan EMI for two tenure options before deciding.
| Tenure | EMI | Total interest | Total repayment |
| 10 years | Rs. 17,649 | Rs. 6.18 lakh (approx.) | Rs. 21.18 lakh (approx.) |
| 20 years | Rs. 11,901 | Rs. 13.56 lakh (approx.) | Rs. 28.56 lakh (approx.) |
The 20-year option gives Ananya a lower monthly outgo. But she pays roughly Rs. 7.38 lakh more in total interest. The calculator makes this trade-off visible before she commits.
Read the amortisation schedule before choosing your tenure
Amortisation is the process of paying off a loan in equal instalments over time. Each EMI contains two components: a portion that reduces your principal, and a portion that pays interest.
In the early years of a home loan, most of your EMI goes towards interest. The principal repayment share is small. As time passes, this balance shifts. In the later years, most of your EMI reduces the principal.
| Loan phase | Interest share | Principal share |
| Initial years | Higher | Lower |
| Middle years | Balanced | Balanced |
| Later years | Lower | Higher |
This matters because if you prepay or close the loan early, you do so after having paid a disproportionately large portion of the interest. Understanding this can help you decide when prepayment is most valuable.
Here is how Ananya’s 10-year loan at 7.30% p.a. on Rs. 15 lakh breaks down at key points:
| Year | Principal (A) | Interest (B) | EMI (A+B) | Balance |
| Year 1 | Rs. 1,05,782 | Rs. 1,06,007 | Rs. 2,11,789 | Rs. 13,94,218 |
| Year 5 | Rs. 1,41,527 | Rs. 70,262 | Rs. 2,11,789 | Rs. 8,84,974 |
| Year 10 | Rs. 2,03,647 | Rs. 8,142 | Rs. 2,11,789 | Rs. 0 |
In Year 1, more than half of Ananya’s annual repayment goes to interest. By Year 10, it is almost entirely principal. A prepayment made in Year 1 or Year 2 saves significantly more interest than the same prepayment made in Year 8.
What happens when you make a prepayment?
A prepayment is any amount you pay over and above your regular EMI. It reduces the outstanding principal, which in turn reduces the interest calculated on the remaining loan. You can use the home loan prepayment calculator available on the Bajaj Finance website to estimate the effect.
After you make a prepayment, you can ask your lender to do one of two things: recalculate your EMI downward while keeping the tenure the same, or keep the EMI the same and reduce the remaining tenure.
Continuing with Ananya’s example: At the end of Year 1, she makes a one-time prepayment of Rs. 1 lakh from her annual bonus.
| Option | Effect |
| Reduce tenure | Loan closes earlier; total interest falls; monthly EMI stays the same |
| Reduce EMI | Monthly commitment drops; total interest savings are lower; loan runs for original tenure |
When should you reduce EMI instead of tenure?
The better choice depends on your income pattern and monthly commitments:
Consider reducing EMI if:
- Your monthly cash flow is already stretched across rent, school fees, or other loan EMIs
- Your income varies month-to-month, such as with commissions or a business
- You want a financial cushion for unexpected costs
Consider reducing tenure if:
- Your income is stable, and your monthly outgo is manageable
- Your main goal is reducing the total interest you pay
- You are in the early years of the loan, where interest savings from early closure are highest
Neither choice is wrong. Both have a place depending on your financial position at the time of prepayment.
How Bajaj Finance supports home loan and repayment planning
Bajaj Finance offers home loans of up to Rs. 15 crore* with interest rates starting at 7.25%* p.a., and repayment tenures up to 32 years*. You can also use financial tools like the home loan EMI calculator to plan your home loan and model the effect of part-prepayments on your EMI with the prepayment calculator.
For borrowers transferring an existing home loan, Bajaj Finance offers a balance transfer facility with rates starting at 7.30%* p.a. and a top-up loan of up to Rs. 1 crore*, with end-use flexibility.
Individual borrowers on floating-rate loans pay no foreclosure or part-prepayment charges, which means you can repay ahead of schedule without any added cost.
Who can apply?
Checking your eligibility before applying can help you prepare the right documents and avoid delays.
| Criterion | Details |
| Nationality | Indian citizen residing in India |
| Age | 23 to 67 years (salaried) 23 to 70 years (self-employed) |
| CIBIL Score | 725 or above |
| Eligible occupations | Salaried employees, professionals, and self-employed individuals |
| Documents required | KYC documents Income proof (salary slips/ P&L statements) Business proof (self-employed applicants only) Bank statements for the last 6 months Property documents |
Online application process
- Click the ‘APPLY’ button on the Bajaj Finance Home Loan page.
- Enter your full name, mobile number, and employment type.
- Select the type of loan you wish to apply for.
- Generate and submit your OTP to verify your mobile number.
- Enter details such as your monthly income, required loan amount, and whether you have identified the property.
- Enter your date of birth, PAN, and other details based on your occupation type.
- Submit your application and await contact from a Bajaj Finance representative who will take you through the next steps.
Things worth checking before you borrow
- Compare at least two tenure options and their total repayment figures, not just the EMI.
- Read the amortisation schedule to understand how much interest you pay in the early years.
- Decide in advance how you will handle prepayments – reduce EMI or reduce tenure.
- Estimate monthly affordability after accounting for all existing financial commitments.
- Understand whether your rate is fixed or floating, and what changes if the repo rate moves.
- Review all applicable charges, including processing fees, bounce charges, and any applicable prepayment fees.
Before you apply, run the numbers
A lower EMI is not automatically a lower-cost loan. A longer tenure saves you money each month but can add several lakh rupees in total interest over time. The most useful thing you can do before applying is to compare tenures, read your amortisation schedule, and plan how you will use prepayments. Use the Bajaj Finance Home Loan EMI Calculator to see your full repayment picture, then explore home loan options that fit your financial position.
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