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: 80Word Count: 484See All articles From Author

Investing / Finance Articles

1. Peace Of Mind Is Not Far Away With Online Installment Loans
Author: www.installmentloansontario.ca

2. The Role Of M&a Advisory Firms In Merging And Acquiring Companies
Author: Aastha Kapoor

3. How To Invest In Sips
Author: Bhagath Varma

4. Why Annual Reports Are Important For Ngo?
Author: Akshaya Patra

5. What Are The Benefits Of Investing In Mutual Funds?
Author: Bhagath Varma

6. No Credit Check Faxless Payday Loans
Author: www.faxlesspaydayloansbadcredit.ca

7. Understanding Corporate Debt Restructuring In India
Author: Aniket Vichare

8. Tips To Know Before Applying For A Personal Loan By Srg
Author: srg housing

9. The Ultimate Guide To Cryptocurrency Wallet
Author: cryptocoinx

10. Buy And Sell Mutual Fund Online | Moneytreesolution
Author: Moneytreesolution

11. Can I Get A Loan Despite Bad Credit Unemployment?
Author: nocreditcheckloansguaranteed

12. Advantages Of Binance Crypto Exchange
Author: Cryptocoinx

13. Payday Loans For People On Benefits Direct Lenders - 100% Online Decision
Author: Hamish Rutherford

14. Best Mcx Commodity Tips Provider In India
Author: Abhishek

15. Why Open An Nri Account?
Author: Samantha Kennedy

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