What is Emi in bank loan? What is EMI full form?
The form of ‘Emi’ stands for ‘Equated Monthly Installment’. With form , it simplifies means for ‘Equally divided Monthly’. Emi is considered to pay off Loans amounts with flexible terms. Emi is to repay the loan amounts on a monthly basis with flexible amounts.
Emi is used to pay off not only loan amounts but principal and interest/services fees. First Emi usually consists of lower principal amounts and higher fees charges.With the monthly payments of Emi, principal amount has been rising and interest/fees reduces.
Emi helps in reducing borrowings and liability of payment. Emi is introduced that the borrower keeps in contact with the lender, there is a relation between them of borrowings and reminds him/she had to pay money to reduce their liability of debt.
Emi is a type of periodic payments in which the Loaner gets their goal of retiring their sum of money from the borrower. EMI is considered for the number of years in which targets for filling sum of loan in easy and proper manner.
Emi is all about ,“Fixed Payment amount assured by borrower to their loaner at the fixed date because of their borrowing in form of loan/credit”.
Emi scheme which is offered by financial institutions to their borrowers on their borrowings repayment. Emi is a type of scheme launched to remind their borrower to pay off the amount of loan in small amounts with the government charges and their services.
Emi scheme in which companies offer a time period to their creditor in which small amounts would complete the wallet of their credit card/loan transactions. Emi scheme consider for time as the borrower credits the larger amount as he/she can’t afford in large, this payment in large possible with times of small payments.
Emi scheme is a type of flexibility in which creditors manage the credits from the bank in the form of returning/repay. Emi scheme is applicable on every loan such as Home Loan , Business Loan , commercial Loan , student loan etc.
ICICI Bank offers many types of loans, for example ICICI Bank Business Loan, ICICI Bank Personal Loan, ICICI Bank Student Loan, ICICI Bank Car Loan, ICICI Home Finance Apna Ghar Home Loan, ICICI Bank Loan Against Securities, ICICI Bank Wedding Loan and ICICI Bank Gold Loan etc.
Reasons of EMI
- To fulfill the loan amount
- To pay in small amounts
- To maintain network of economics
- To purchase needs at the time of sudden or emergencies
- To pay off services of loan/larger finance within flexible amount
- To build credit score for future larger loans
Purpose of EMI
- To reduce the load of paying
- To reduce the unwanted conditions of debts and their traps
- To associate people with authorized financial institution
- To minimize unwanted government charges
- To rotate money among India
- To provide easy and quick termed financing
- To provide them time to repay with thanking charges (interest and process charges)
- To forward people with their financial posts
Benefits of EMI
- Easily afford expensive things
- Easy to transfer
- Option of flexible emi amounts
- Provide tenure period
- Fulfill the needs of borrower
- Quick meet to sudden or emergencies
- No pressure of fiance
- Covenant services and returns value
- Tax benefits
- Easy payment option
- Share option is available
- Support in condition of poor fiance
Calculation of Emi, check it :
- As the Emi is a form of repayment of loan/credit/bank from the financial institutions as it plus charger of their services.
- Emi calculated with basis of loan amount.
- Emi is a calculated subject with period of repayment or tenure period.
- Emi is calculated according to borrower flexible small amounts.
- Emi with interest rates and other charging of processes , their timings etc.
- Emi calculated according to loan subjects such as personal , student , vehicle etc.
- Emi with addition to gst and income tax charges of government and bank
- Emi calculation according to our maintenance of accounts.
Eligibility of EMI
- Should be associated with bank loans or borrowing from financial institutions.
- Should be equal or above 18 years
- Should be Indian citizen.
- Should be particular with necessary documents of loan
Documents of EMI
- Proof of identity
- Proof of address
- Income statement
- Gst return
- Copy of bank pass book of 6 months.
- All the sheets
- Approval of loan copy
Way to EMI
- You can assure Emi by way of considering a loan from a bank or lending money from any financial institutions.
- Emi can be way through online or offline transaction
- Emi is wayed in form of repayment of loan within the tenure period.
- Way to emi by commending small payments to the sum of loan amount.
- Emi way through the name of the borrower to the loan.
- Emi should be in addition to all charges and rates on a fixed date.
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