123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Emi Payments Are Very Importance And Here’s Why You Must Calculate For It

By Author: Aishwarya Mahurkar
Total Articles: 291

EMIs are the equated monthly instalments you have to pay to repay the loan issued to you by a financial institution. Each month the borrower is required to pay off a part of the principal amount and interest charged on it. All financial institutions provide a home loan calculator which provides the borrower with an in-depth knowledge of the amount they will be required to pay each month. This is extremely important for the following reasons.

1. Budgeting the finances

An EMI calculator allows the borrower to know beforehand how much he is required to repay the bank each month. Since it is a loan, most borrowers have to plan ahead as to how they plan on repaying the amount. For some who are liable to repay other loans as well, finding out their EMI payments is crucial. The reason being that if you are not able to repay your loans on time, your credit score tends to reduce. It can also affect your ability to apply for loans in the future. In cases where you have provided some type of security against the loan, failure to repay the EMIs on time may lead to the bank seizing your security such as land or your home for their own.

2. Deciding on the right EMI

Borrowers EMI is decided based the amount of loan issued, the tenure of the loan and the interest charged. The interest charged and tenure of the loan is decided based on the financial institutions policies as well as the requirements and ability of the borrower to repay the loan. It is extremely important for a borrower to ensure that the amount of EMI decided upon is payable. If the EMI is a realistic amount then it makes the financial planning of the borrower simpler. Though many try to repay the loan as quickly as possible, they must not be over ambitious as the inability to repay the loan consistently each month may affect the borrower’s financial credibility.

3. Using the EMI calculator

All banks have their own home loan calculator which allows the borrower to find put the amount of EMI they are required to pay the bank each month. This tool allows borrowers to calculate the correct amount of EMI and plan ahead of time as to how they plan on repaying the loan amount each month.

EMI is an extremely important part of your home loan repaying process and must not be taken lightly. Use the home loan calculator to find out your monthly EMI amounts and try to repay them consistently to maintain a good credit score.

Author Bio :

The author is a seasoned writer on finance topics and through her writing; she articulates aspects of home loan that are important to people availing the home loan facility. She writes about a variety of topics covering the home loan documents, rates, home loan calculator that help to make the best decision.

Total Views: 51Word Count: 484See All articles From Author

Investing / Finance Articles

1. 5 Hacks To Getting Loan Against Property Approved
Author: Atish Nayar

2. How A Claims Adviser Helps With Insurance Claims
Author: Edmund Brunetti

3. Avoid These Mistakes While Hiring A Cpa Firm
Author: Hampry Gomes

4. Top Tips For Mcx Commodity Trading
Author: Riya Jain

5. How To Claim Unclaimed Fixed Deposits From Banks
Author: Arwind Sharma

6. 12 Month Payday Loans Direct Lenders
Author: Carol Adams

7. Where To Look For Ongoing Projects In Mumbai In 2017?
Author: Mira

8. Benefits Of Hiring A Tax Accountant
Author: Karen Lee

9. Impact Of Gst On Manufacturers And Their Distribution Networks
Author: Rahul Sutraj

10. Quickly Find Ideal Program For Commercial Lending In Atlanta
Author: John Bairstow

11. Why Emv Credit Card Terminals Are Necessary For Business?
Author: Satya Nadella

12. Get Set For A Great Retirement Life
Author: Deepesh Reddy

13. Payday Loan In India, Payday Loan India, Payday Loans India
Author: Mayank Aswal

14. Mashreqpay Program To Ease Your Personal & Business Life
Author: Jeff Usman

15. Maximize Your Profitability With Trade12 Trading Services
Author: Trade12

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: