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: 64Word Count: 484See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

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