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How is EMI calculated on my personal loan?

Expanded as Equated Monthly Installments, EMI is often the source of confusion. More than confusion, it’s often anxiety over the amount paid. Besides getting a personal loan at the right time, you can reap better benefits without any push or pull of approval through Buddy Loan, one of the best loan aggregators.  Claim your Instant Personal loan online with the least documentation.

Doubts arise over the lender’s interest charging criteria. Lack of clarity on the computation method of EMI may also deter people from taking personal loans. The following information discusses the calculation method of EMI. Knowing how much interest is charged, and how much is going towards repayment of the principal is every borrower’s right.

Some salient points about EMIs

•             EMIs are dependent on the amount of loan taken, rate of interest and the loan period.

•             EMIs are decided on the date of loan sanction and never change during the tenure of loan repayment.

•             Interest component and principal component constitute the EMI.

•             EMIs paid in the initial part of the repayment schedule have a substantial portion that goes towards the overall interest on the loan computed based on the loan period and per annum rate of interest. In the later years, the portion of the EMI towards repayment of the principal component becomes higher and the interest component lower.

•             Those who have opted for floating interest rates can experience a change in EMIs.  Get Instant Personal loan with the low-interest rate at Buddy Loan in India.

 Types of EMI

Pre EMI – Given in stages for construction of home.

·         Disbursed in phases for in-development projects or under-construction homes

·         Pre EMI installments are levied on the loan disbursed. By the time of completion of the project, the entire loan is disbursed. Pre EMI is applicable within this period. 

Tranche – Borrower pays the complete EMI

·         Borrower pays the complete EMI even if the complete loan for the under-construction project is not disbursed.

Accelerated – Borrower expedites repayment of loan

·         A facility available only with select financial institutions, the borrower is allowed to repay more than the EMI amount to repay the loan faster and reduce the tenure.  Get Personal Loan Online.

How is EMI calculated?

The formula for EMI calculation is as follows:

[Principal x Rate of Interest Per Month x (1 + Rate of Interest Per Month) ^ Number of Monthly Installments / (1+ Rate of Interest Per Month) ^ Number of Monthly Installments - 1]

Let’s calculate the EMI for a loan of 15 lakhs with an interest rate of11.99% per annum with a loan tenure of 5 years.

·         Rate of interest per month is = 11.99 / 12 x 100

·         ^ is to the power of

1500000 x 0.00999 x (1 + 0.00999) ^ 60 / (1 + 0.00999) ^ 60 – 1 = 14984

Every month installment for this loan will be Rs. 14984

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Can I get personal loan for business expansion?

In an ideal situation, when you are starting a new business or if it’s for commercial expansion, you should be seeking a business loan. But there are times when the user is allowed to take personal loan to fund the business and is proved to be useful. Personal loans are introduced targeting individuals who need money ranging from buying a gadget to wedding requirements. It is important to understand under which circumstance is that an individual should be using personal loan for business purpose.  Claim your Instant Personal loan online with the least documentation.

Buddy Loan offers instant personal loans online for all your needs.

Starting a new business: If the business is in the initial stage of ideation and yet to start, it is extremely difficult to get a business loan, possibility of the bank to reject the loan is high since they majorly focus companies those are up and running. To fund your company at the starting stage personal loan is the right option since personal loans are extended for any purpose and there isn’t a question if the borrower will use it or not.

No guarantor/ Collateral: The borrower is not demanded a collateral or a guarantor to avail personal loan. Whereas business loans always secure in nature, there is a need of collateral. In such cases you can rely on personal loan to raise funds for your business needs.

Temporary shortfall of money: If the business requirement is to overcome a temporary short fall of money, personal loans always make sense, if you can repay the amount within the stipulated time

When the requirement is small: If the amount required for the business need is relatively small, personal loans works well over business loans. It doesn’t take much of documentation difficulties. 

Personal loans for business by Buddy Loans allows you to use the funds for anything you need it for, be it for purchasing a new machinery, for raw materials purchase, or anything at all, depending on your requirement.

Applying for Buddy Loan’s personal loan for business is a strings-free and hassle-free process. It completely online, and basis the following eligibility criteria like income, credit score, business model, taxes, your loan gets approved faster. This is because we have a wide pool of loan providers associated with us. The process is instant and easy. 

Buddy Loan is a loan aggregator having tie-ups with different non-banking finance companies (including Dhani, Paysense etc) and banks (like ICICI, Kotak etc) to help you avail the required amount for your business expansion.

Buddy Loan is the most convenient option for you because of the following reasons:

User     friendly landing page journey

Hassle     free digital application process

Fastest approval    

Transparent     and reliable

Low     interest rates on loan provided

Longer     repayment tenure

Quick Disbursement of     amount directly into your bank account

So what is keeping you waiting? Apply for a business loan via Buddy Loan now. 

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How can I repay my two-wheeler loan?

Payment of loans is essential, and doing the same in the best possible manner can help self as well as the bank for future requirements. However, Buddy Loan helps you face the below concerns of a two-wheeler loan. When loans are taken for automobile purposes, especially bike or two-wheeler, paying them at the earliest can aid a lot of benefits like savings, reduced financial burden, a good credit score, and also encourage banks to give loan consents in future. 

 Certain tips and tricks to be followed for loan repayment are as follows:

  Autopayment     – The first step should be     to link your loan account with your salaried account of the current     account where the amount can be deducted as soon as it arrives. Most of     the repayment fails because money needs to be transferred from one account     to the other, which is mostly procrastinated and ends up in failure of EMI     Processing. If the loan account is attached to the salary account, the     amount gets auto-debited and thereby leaves the only option of spending     and managing expenses with the remaining amount; thus, EMI payment never     fails. 

  Using     Savings –     There always are some savings we have done, and those can be used for     repayment. Using savings is a wise option as it ultimately leads to     savings of the current money that is being earned as it cuts on the     interest that is being paid. Any loan comes with interest, and if the loan     is prepaid or paid on time, it saves on late dues and extra interest     charges.  Apply for instant two wheeler loan online

  Budgeting – This is a well-planned method to manage     income and expenses. At the beginning of the month, a budget of expenses     should be made and used accordingly. A track should be kept on the related     expenses; this helps to stop and avoid unnecessary expenses. If no     budgeting is done, expenses are met as and when they emerge with no     procrastination, but when working on a budget, one tends to avoid     unnecessary expenses hence saving more. These savings can be used for     repayment. 

  Source     of Extra Income –     Try and find if work can be done upon extra income like either by working     part-time post regular job or through some small business at home or even     by investing in funds that generate more interest. This could be an     additional source which can help in faster repayment. 

 These are a few tips and tricks that can be followed and used for an on-time loan payment or faster payment. Buddy Loan    can also help you with the repayment. The tips from Buddy Loan     can help you achieve great results.  Apply Instant Two-Wheeler Loan Online, Get Instant Two-Wheeler Loan

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What are the features of gold loan?

Times are changing. It is quite an ironic situation wherein the rate of gold is skyrocketing all over the world, and no one likes to wear it. Buddy Loan offers As far a making a fashion statement is concerned, Diamond jewellery or platinum wear has overtaken Gold jewellery, but as far as authenticity, investment, and value of a product are concerned, gold remains a favourite. 

 In case of urgent need of money, many people apply for a loan against gold, which is a secured Buddy Loan. Gold Loan providers keep Gold ornaments as collateral and fund immediate financial requirements. The interest rates are quite alluring, and even the borrower feels it’s an effortless and instant loan. Get instant online gold loan for all your financial needs

 Eligibility:

Age has to be more than 21     and less than 65 to be eligible to apply for an online gold loan.

If taken, the loan must be     terminated before the borrower turns 65 years old.

The employment of the     borrower is a must to ensure repayment of the amount given.

For Approval of the Buddy Loan,     minimum purity of gold needs to be 20 carats and above.

 Documents required to apply for the Loan on Gold:

Passport size Photographs

Identity Proof – a valid     proof that can be used as an address proof as well.

Signature Proof

Current Residence Address     Proof

If the amount of the loan     exceeds 50k, PAN card submission is required. If the value o the loan     exceed five lacs, income and employment proof is required.

 Key Features:

Instant Processing -The     eligibility criterion needs to be met to apply for the Buddy Loan.

Low and Affordable Interest     Rate - Since gold is given as security, the interest rates are much     lower. 

No Hidden costs or charges     while applying for the Buddy Loan.

Transparency of terms and     conditions between the borrower and the lender.

Using Gold Loan EMI     Calculator, you can check the minimal amount of interest charged for the Buddy     Loan

At home and doorstep     facility provided to avail the Buddy Loan.

No processing fees or very     minimal charge taken to process the loan.

No Foreclosure charges

No Income/Salary Proof

Credit Rating not required     or affected

Loan-to-Value Ratio- Only 80% of the value of     gold is remitted to the borrower.

In case of any default in     skipping the time range or a payment, you can lose your gold

  in future whenever you     require a Buddy Loan on gold in case of any financial restraints, you can     apply for an online gold loan and get the available anytime anywhere in     just a few minutes.  Apply Instant Gold Loan Online, Get Instant Gold Loan