Processing and Foreclosure Charges? Explained in a much simple way!

Yes, Everyone has at least a little confusion with respect to these terminologies.

So what you think would be the meaning of these terms??

Hahaha!!!

How stupid is to ask such a question? If you would have a better understanding of it. Isn’t it obvious? that you wouldn’t have been here to read this post at all??

No Problem! By the end of this post I am sure you will be able to figure out what this terms exactly mean.

Okay!

process and forecluser

Processing Charges: These are the charges applied by a bank or any finance companies to process your loan application and provide you the loan amount based on your eligibility criteria and terms and conditions of the provider bank or any financial company.

Basically, it is the charges applied to the customer by any financial organization to meet the costs they come across to give a better efficient service to the customer.

But!!!!

Before, applying for any loan. Make sure you check for these charges properly. So that you are saved from paying heavy processing charges for the loan amount.

Because there are banks or finance companies which charge almost Nil or negligible charges to their customer.

Foreclosure Charges: These are charges applied by the bank or any finance companies to process the closure of your loan in advance.

For Example:

Say by Grace of God! you could save huge money in shorter duration of time and you are now willing to pay all the remaining EMIs in advance. Then, you can do so by applying for foreclosure of the loan.

Again!!

A gentle reminder, would be of no harm!

Please ensure before applying for any loans to avoid yourself from paying heavy foreclosure charges.

Because, there are banks or finance companies which charge almost Nil or negligible charges towards foreclosure of the loan.

Conclusion: No matter how careful you are in terms of loans and finance. Don’t ever be negligible with respect to these charges.

Because these charges might be negligible if the loan amount is small.

But!!!

Same charges might be huge enough if the loan amount is large.

Hope so this post was of some help for you!

Keep reading my blog! Do let me know through your comments, if you have any specific questions with respect to the above post!

EMI? Explained in a much simple way!

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!

Don’t worry!

EMI to understand is quiet simple. To first tell the full form of it. It goes this way.

EMI

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.

What is Finance? Want to know it in a much simpler way?

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!

  1. EMI with interest
  2. 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. 🙂