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Written by Site Administrator
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Wednesday, 28 October 2009 05:49 |
EMI is equated monthly installment. Any loan that you take from a bank or a financial institution must be repaid with interest. These banks arrange to deduct this amount every month from your salary account on a fixed date in monthly installments called EMIs. EMIs can be deducted automatically (ECS) or through post-dated cheques that you issue to the bank during the time of disbursement of your loan.
An EMI has two components in it – the principal amount, and the interest amount. The total loan amount along with interest for all month of the tenure is first caculated and this amount is then divided into equal monthly installments. Generally, a reducing balance model is followed on EMIs. That is, the interest component will be higher than the principal component in the beginning of the loan. As the payment tersm goes by the principal component will increase the interest component will reduce.
To calculate your EMI on any of your loans, you can use our EMI Calculator.
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Last Updated on Wednesday, 28 October 2009 06:24 |
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Written by Site Administrator
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Wednesday, 28 October 2009 06:04 |
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A processing fee of 2 to 3% of the sanctioned loan amount is taken as processing fee. This amount will help the bank meet its expenses for processing your application for the loan and to review all the documents you submitted in connection with your application. |
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Written by Site Administrator
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Wednesday, 28 October 2009 06:08 |
Along with your application, you must submit the following documentation when applying for a personal loan:
- Proof of identity
- Proof of Residence
- Proof of employment/self employment
- Bank statement for the past six months
- Payslips / pay checks for the past six months
- Photographs
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Written by Site Administrator
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Wednesday, 28 October 2009 06:16 |
Yes, banks will levy charges upto 5% of the initial disbursement amount as prepayment charges. Prepayment is the payment that you want to do as a lump sum during the tenure of the your loan to reduce the burden of the EMIs and to bring down the tenure.
In the event that you are making a prepayment, make sure that the interest that you are paying on your loan is much higher than the prepayment charges levied at that time.
The prepayment charges are a must on all personal loans. However, the charges vary from bank to bank. You must find out more details about prepayment charges before applying and chose the best deal for you right in the beginning.
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Written by Site Administrator
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Wednesday, 28 October 2009 06:27 |
Once you submit all the necessary documentation along with your apllication the bank can process them in two working days. You may get loan in approximated 2 to 7 working days.
In the event that you are working for an employer of very high stature, than the loan may be disbursed in less than 24 hours from the time you submit your documentation.
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Personal Loan
