Have you opted for a home loan and EMI scheme recently?
Buying a home is lifetime event for most of people, and bank loan is the only possible way for the required finance. Most of the potential buyers not being able to gather the amount required in cash for the property purchase. And, in a situation like this, we would but obviously opt for a bank finance a.k.a loan. Loans have been playing a significant role in each of our lives, and a great help achieving our material goals without a single doubt. Buying a new car, expenditure on education of our children, going for a leisure holiday to foreign destinations, easy loan options have made them easier for us in the present day-and-age without much difficulties. In fact, getting a financial support is like a phone call away!
In this blog we will be discussing about the important fundamentals of Equated Monthly Installments i.e. EMI for any type of Loan. So, lets get started.
What is EMI and how does it help you with the loan repayment?
When you discuss about loans, you often associate it with EMI, which is the fixed monthly payments that you make to the lender of the loan that you have opted from. EMI is a compilation of the amount, that is to be paid towards both, the principal and the interest applied to the loan amount. However, the EMI mainly comprises of the interest component, which forms the major portion of the EMI payment during the initial stages. In due course of time, as we proceed towards the loan tenure, the majority portion of the loan amount shifts from the interest repayment to the principal repayment.
We shall discuss about the Loan Payment Schedule in our upcoming blog. Meanwhile, please let us know in case if you have any questions regarding the EMI payment or further details. We will be more than glad to assist you with the required information. Till then, be safe in all your financial transactions, and always make it a best practice to save for the rainy days.