Thursday, October 8, 2020

Personal loan tenure and EMI Analysis

Nowadays, Personal loans are easily available in the current market with affordable interest rates. If you are also planning to take a personal loan for any financial crisis. 

You should choose the best suitable loan for you. You need to thoroughly investigate the lender's personal loan scheme. You should check the DCB Bank personal loan on dialabank. They have an affordable rate of interest. Don't miss to check their terms and conditions, rate of interest, and tenure.  

The most critical metric in your personal loan is your EMI( Equated Monthly Installment). EMI is the amount that you have to pay every month without missing. It's like one additional expense that is going to add to your monthly budget. 

You can use the personal loan EMI calculator of dialabank to calculate your EMI. It will assist you to know the exact money you would be liable to pay for a particular loan amount. You need to enter the tenure, loan amount, interest rate in order to view the EMI.  

There will be a fixed date when you have to pay the EMI. Either it can be at the initial days of the month or it can be on the last date of the month. Many lenders give the choice to the customer to choose a suitable date when the customer can accumulate the required amount in their account. 

The personal loan EMI  depends on the following factors.  

  • Loan amount: It is the amount that you would borrow from the financing company. EMI is directly proportional to the amount you would borrow. If you have a higher loan amount that means you have to pay higher EMI. 

  • Rate of Interest of personal loan: Interest rates are also directly proportional to your EMI. The higher the rate of interest is, the higher the EMI will be. 

  • Tenure: This is the critical factor around which your loan revolves. In simple words,  tenure is the duration of the loan. It ranges between 1-5 years. The minimum which you can opt for is 1 year and the maximum can be 5 years. 
It is advisable not to keep longer tenure just for the sake of small EMI. One should also consider the fact that if he has to pay for longer tenure even a small EMI will become a huge fund that can overburden him. 

If you are not aware, I would like to highlight that there are some small charges which are levied by lenders like processing fee, prepayment charges, and foreclosure charges as well. 

You have to be very wise while choosing the tenure and EMI. For more the rate of interest and longer tenure, the customer is bound to pay more amount.

Accordingly, you can decide which loan suits you the best and then you can avail of that.


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