A marriage loan is the one you apply from one of the lenders associated with Buddy
Loan for the sole purposes of planning for your wedding. You plan to enjoy your day
with strong financial backing making sure you lack nothing you desire. Eligible
individuals access up to Rs 25 lakhs at an interest rate of between 14-25 %. The
repayment period ranges from 12 months to 72 months.
The EMI on your marriage loan is the amount you will be paying monthly to your loan
lender. This amount is computed to include the interest and the principal amount. You
pay fixed monthly EMIs for the period of the loan,reducing the loan you owe the bank.
The bank may choose to calculate the EMI using the reducing balance method or the
flat rate method.
Factors that affect the interest rate of your marriage loan
Buddy Loan marriage loan is technically an unsecured personal loan. Factors that affect
the interest rate will consequently affect the size of EMIs:
These are:
Employment nature, there is a huge difference between the interest rates
negotiated for salaried people and self employed people.
Customer relationship ensures they get a better deal on interest from their banks.
Repayment history favours you if you have diligently been paying your previous
loans.
If your income is higher, you negotiate for bigger EMIs, and so you save on
interest
Flat rate method
Principal amount+ interest on the principal = EMI
Number of periods* number of months
Method 1
Use an online calculator. If you are applying for an online marriage loan, most providers will have
an online calculator where you key in the variables and compute your EMI.
The bank computes the interest you pay using two methods. These are:
Simple interest. This type of investment is calculated only on the amount of loan
given out.
Principal* interest rate * the number of repayment periods.
Compound interest: In this method, the interest is added back to the amount
borrowed for you to calculate the next year's interest
Principal*interest rate= interest for year 1
Principal interest for year 1* interest rate= interest for year 2
Reducing balance Method 2
The mathematical formula to calculate EMI
P*R*(1+R)^N = EMI
[(1+R)^n-1
P =principal amount
R =The rate of interest
N = Number of repayment periods
Method 3
Using an excel worksheet
Using the same variables but the function
PMT=Rate* number of repayment periods* amount of loan
Loan for the sole purposes of planning for your wedding. You plan to enjoy your day
with strong financial backing making sure you lack nothing you desire. Eligible
individuals access up to Rs 25 lakhs at an interest rate of between 14-25 %. The
repayment period ranges from 12 months to 72 months.
The EMI on your marriage loan is the amount you will be paying monthly to your loan
lender. This amount is computed to include the interest and the principal amount. You
pay fixed monthly EMIs for the period of the loan,reducing the loan you owe the bank.
The bank may choose to calculate the EMI using the reducing balance method or the
flat rate method.
Factors that affect the interest rate of your marriage loan
Buddy Loan marriage loan is technically an unsecured personal loan. Factors that affect
the interest rate will consequently affect the size of EMIs:
These are:
Employment nature, there is a huge difference between the interest rates
negotiated for salaried people and self employed people.
Customer relationship ensures they get a better deal on interest from their banks.
Repayment history favours you if you have diligently been paying your previous
loans.
If your income is higher, you negotiate for bigger EMIs, and so you save on
interest
Flat rate method
Principal amount+ interest on the principal = EMI
Number of periods* number of months
Method 1
Use an online calculator. If you are applying for an online marriage loan, most providers will have
an online calculator where you key in the variables and compute your EMI.
The bank computes the interest you pay using two methods. These are:
Simple interest. This type of investment is calculated only on the amount of loan
given out.
Principal* interest rate * the number of repayment periods.
Compound interest: In this method, the interest is added back to the amount
borrowed for you to calculate the next year's interest
Principal*interest rate= interest for year 1
Principal interest for year 1* interest rate= interest for year 2
Reducing balance Method 2
The mathematical formula to calculate EMI
P*R*(1+R)^N = EMI
[(1+R)^n-1
P =principal amount
R =The rate of interest
N = Number of repayment periods
Method 3
Using an excel worksheet
Using the same variables but the function
PMT=Rate* number of repayment periods* amount of loan
No comments:
Post a Comment