EMI?? What is this EMI all about? This term is really confusing, I being from a non finance background. I find it hard to understand this terminology all together!!
If you also think so!
Then this post is definitely for you!
EMI to understand is quiet simple. To first tell the full form of it. It goes this way.
EMI = Equated Monthly Installments
Now, you might think what is the definition of it? No problem. Definition is like this. In very simple language.
Definition: To have better understanding of this you must be having at least some idea of Finance and its parts.
If you want to have a clear understanding of it in just 3 to 4 minutes. I would recommend you to read this post of mine.
Okay, here is the best part about EMI. And, this is why it is very popular driving force to take any loans these days.
From what you read in the Finance post above. Part 2 of Finance can be easily done through EMI.
You can easily return the amount you received from the bank or any finance company in Easy Equated Monthly Installments.
When I say, Easy Equated Monthly Installments. It has 3 components to it.
First: Principal Amount
Second: Interest Amount
Third: Service Tax or any other applicable taxes
So having known in general about What EMI is all about? Lets also know, as of now there are banks or financial institutions providing this option of EMI in 2 different ways!
- EMI with interest
- EMI without Interest
1. EMI with Interest: There is considerable rate of interest being charged for the loan amount received based on the loan tenure.
2. EMI without Interest: There is absolutely no interest being charged for the loan amount received.
Note: Either with respect to EMI with/without interest. Please don’t forget to look for all the processing and foreclosure charges for the loan being applied for.
Want to know more about Processing and Foreclosure Charges?
Bet you would want to read this post of mine which will give you a fair understanding of these terminologies in not more than 4 to 5 minutes.
Processing and Foreclosure Charges? Explained in a much simple way!
Conclusion: No matter which loan your planning to opt or apply for. Be sure to check all the features of the loan appropriately.
So that you don’t end up with a wrong loan and save as much as money on interest payable and make yourself relaxed by choosing one of the best EMI facilities.
Hope so this was of some help for you!
Thanks for reading! Do comment your thoughts on the above post. 🙂