Tips for Calculating E.M.I.
Don’t be corrupted by paying high EMIs at low rate of interest
Better compare EMIs with same tenure and then with rate of interest
Check your reimbursement power (EMI)
The EMI depends on the amount of the loan, the interest rate and the term of the loan. It Is an unequal combination of principal repayment and interest cost every month. In the beginning banks recover their interest payment and gradually more of the principal repayment by the end of the loan tenure. EMI amount should range maximum to the 40% of your monthly income. One should consider offers from various banks as it may differ from one bank to another bank. Your involvement into the process might end up in a win – win situation for you.
Market around (Rate of interest)
Every bank offers different personal loan rates and home loan rates according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and rate of interest and keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision.