Understand EMI Mathematics

It is the most common and convenient way to repay the trending EMI loan. Understand what is EMI 1. What is EMI? EMI means that ‘equated monthly installment’ is a fixed amount that has to be paid each month, including the original interest. 2. How is EMI decided? EMI depends on three things: loan amount, interest rate and period. The more time, the less EMI, the less, but the total importance will be more. The lower the interest rate, the lower the total cost. 3. Understand interest, floating rate and fixed rate – these are two types of interest rates. Fixed rates are fixed, can become in driver. Choose the option according to your needs and risk capacity. 4. If you make more down payment while taking a installment loan, take EMI off. Taking a low loan also lowering the interest. This is why it is beneficial to give some parts initially. 5. Pay EMI on time. When paying EMI, delayed fine is imposed and the creditworthiness is bad. Regular missing can make it difficult to get a loan in the future. Adjust an auto-bit or reminder, pay on time. 6. EMI will be reduced by extending the effect period of the loan period but will have to pay more interest. EMI is high, but the total payment is less in the short period. Consult your monthly income and budget and choose the right duration. 7. Prepayment or four statement If you have extra money, the loan can be refunded in advance. It lowers the cost of interest. However, prepayment can also be charged in some banks. 8. The importance of creditworthiness helps to achieve a good credit rating (750+), loan in early and low interest. The score remains well by repaying the loan in time. Banks determine your credibility based on this score. 9. Compare before taking a loan. The EMI rates and conditions of different banks in the market differ. Take help from the online EMI calculator and compare. In addition to interest, see processing fees and hidden levy. 10. Take a loan thought out, loan is not just a facility, it is also responsibility. EMI binds part of your income, so take it according to the need. Don’t take a loan by just looking at the offer. Click here Life & Style Click for more stories Click here