When one takes a Bandhan bank
credit card Loan, a natural question that comes to mind is how much the EMI
would (Equated Monthly Installment) be that one must pay back to the bank every
month.
Hope the following FAQ’s
about Bandhan bank credit card EMI will answer all your questions
What
is Bandhan bank credit card EMI Calculator?
A Bandhan bank credit card
calculator helps you know the amount of the EMIs that you will need to pay
towards your Bandhan bank credit card and helps make an
informed decision. The EMI-Calculators Bandhan bank credit card EMI calculator
also functions as a Bandhan bank credit card interest calculator, as you will
be able to know the interest amount due on your Bandhan bank credit card, in
addition to the overall EMI amount, in just 3 simple steps. First, enter the
loan amount that you wish to take. Then, select your preferred tenor. Finally,
put in the Bandhan bank credit card interest rate advertised on the
website. That’s all!
What is Bandhan bank
credit card EMI?
EMI stands for Equated
Monthly Instalment. EMI is the monthly repayment that a Bandhan bank credit
card borrower must make to repay the Bandhan bank credit card within the
specified loan tenor.
The following table
illustrates the EMI on several Bandhan bank credit card amounts with different
tenures. The applicable rate of interest is 8.60%* onwards.
Factors that Affect Bandhan
bank credit card EMI
- Principal– The principal is
the loan amount that you avail from the lender. It is directly
proportional to your EMIs – lower principal will lower your monthly
instalments and vice versa.
- Rate
of interest– The rate of interest is the rate at which the lender offers
you the loan. It is also directly proportional to the value of your loan
EMIs.
- Tenure– The tenure is the
time within which you repay your loan. The tenure is inversely
proportional to your loan EMIs – longer tenure makes the monthly
instalments cheaper and vice versa.
Bandhan bank credit card
Eligibility
If you meet the following criteria, then you will be eligible for a Bandhan bank
credit card from more than one bank.
Age : The minimum age required to hold a Bandhan bank credit card is 18 years, while the maximum age at
which a Bandhan bank credit card can be availed is 60 years.
CIBIL Score : A minimum CIBIL score
of 650 is required to avail of a Bandhan
bank credit card. the bank in which the individual already has an account.
Employment Status : To avail of a Bandhan bank credit card, a steady flow of income is
required. Both salaried and
self-employed can avail of a card as long as you can provide proof of steady
income flow.
Net Monthly Income : Minimum Rs. 15,000 as net monthly income is required to avail of a Bandhan
bank credit card.
ITR : Self-employed individuals are required to submit last year’s ITR
as well, along with identity proof
when applying for a Bandhan bank credit card.
Documents required to
apply Bandhan bank credit card loan
Salaried Employees:
· Filled up Bandhan bank
credit card application form
· 2 Passport Size Photo
· Copy of Income Tax PAN
· Identity Proof – Aadhaar, Passport / Driving
License / Voter
ID / PAN
· Residential Address
Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3
months old), Passport
· Income Documents – 3
months pay slip, 2 years Form 16, 3 months bank statement showing salary credit
and any EMI debit
Self-Employed:
· Filled up Bandhan bank credit
card application form
· 2 Passport Size Photo
· Copy of Income Tax PAN
· Identity Proof – Aadhaar, Passport / Driving
License / Voter
ID / PAN
· Residential Address
Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3
months old), Passport
· Income Documents – 3
months pay slip, 2 years Form 16, 3 months bank statement showing salary credit
and any EMI debit
Factors Affecting Bandhan
bank credit card Eligibility
CIBIL Score : CIBIL score
is an indication of a person’s creditworthiness. Lower the score; lesser is the
creditworthiness. Besides, the more benefits a card has, the more is the required credit
score. Some banks do have a
specified card for those who do not have a credit score. However, if you have a
certain credit history, then the minimum CIBIL of
650 is required.
Income : Although a minimum income of Rs. 15,000 is required to be eligible for the card, but it will be a card with
very few to none benefits. Higher income will attract a better card, which has a lot more
benefits and a robust reward system.
Organization : Each bank has a list of organizations with it, which are considered by the
bank as trusted companies. So, if you work among any of those organizations, then the eligibility
criteria for you are relaxed as compared to those who do not.
Previous Bandhan bank credit card Record : In case you already have a Bandhan
bank credit card and want to apply for another one, then the record of your
previous card can be used to consider your eligibility. Thus, if you have maintained a
good repayment record in your previous card, then it will serve as a positive sign for the
bank when considering your eligibility.
Existing relationship with bank : If you already have a
savings or salary account with a bank, then based on an existing relationship, you can easily be eligible
for a Bandhan bank credit card issued by that bank. As compared to new customer
banks have relaxed norms for existing ones. ICICI Bank has low-income criteria for customers
who have a salary or savings account with the bank.
Bandhan bank credit card
EMI for Different Loan Amounts
Following table shows
the EMIs for various loan amount based on different tenures at 8.60%* onwards
· The EMI that you can
avail with Bandhan bank credit card of 10 Lakh is 10,024 with 15-years tenure.
The EMI increases when you opt for tenure of 5 years.
· The EMI for a loan of
15 Lakh is higher – 30,992, when you opt for 5-years. It decreases to 15,036 if
you opt for tenure of 15 years.
· For a loan of 25 Lakh,
the cheapest EMI you can avail with 15 year tenure – 25,060. Decreasing the
tenure to 5 years increases the EMI to 51,654.
· The EMI is 72,315 when
you avail loan of 35 Lakh for 5 years. The same will decrease to 35,084 if you
increase the tenure to 15 years.
· The cheapest EMI comes
with 15-years tenure with loan of 50 Lakh – 50,120. The EMIs double when you
opt for 5 years tenure.
How is Bandhan bank
credit card EMI Calculated?
Equated Monthly
Installment – EMI for short – is the amount payable every month to the bank or
any other financial institution until the loan amount is fully paid off. It
consists of the interest on loan as well as part of the principal amount to be
repaid. The sum of principal amount and interest is divided by the tenure,
i.e., number of months, in which the loan has to be repaid. This amount has to
be paid monthly.
E = P x r x
(1+r)^n/((1+r)^n – 1)
- E
is the amount that you will have to pay every month; basically, the EMI.
- P
is the amount that you want to borrow.
- r
is the rate of interest that is applicable but calculated on a monthly
basis instead of the annual rate of interest. It is obtained by using the
formula r = (annual interest/12) x 100.
- n
is the duration of the loan in terms of months. So if you select a term of
5 years, n will be 60.
EMI is just the
amount you (borrower) repay to the bank, each calendar month, to clear your
outstanding loan.You have to repay the EMI each month, on a particular fixed
date, for the entire duration (tenure) of the loan, till you repay the entire
outstanding amount. (amount borrowed + interest).
For Example, if you borrow
10,000,000 units of a currency from the bank at 10.5% annual interest for a
period of 10 years (i.e., 120 months), then EMI = Units of currency 10,000,000
* 0.00875 * (1 + 0.00875)^120 / ((1 + 0.00875)^120 – 1) = Units of currency
134,935. i.e., you will have to pay total currency units 134,935 for 120 months
to repay the entire loan amount. The total amount payable will be 134,935 * 120
= 16,192,200 currency units that includes currency units 6,192,200 as interest
toward the loan.
How to Calculate EMI for Bandhan
bank credit card?
Calculating the EMI
amount on your Bandhan bank credit card is quite easy. Simply enter the loan
amount you wish to take, the tenor (in months, and not years) and the rate of
interest, in the required fields.
Once you find the EMI
calculator for Bandhan bank credit card, To calculate the amount of EMI,
you need to put the following inputs in the EMI calculator:
- Loan
Amount – The principal amount borrowed from the bank or
financial institution is known as the loan amount.
- Interest
Rate – Interest rate can be either fixed or floating.
- Loan
tenure – Is the time over which you choose to repay the loan.
The result will be your
EMI, the total interest you’ll be paying and the total amount you’ll be paying
by the end.
What are the Advantages
of Knowing Bandhan bank credit card EMI in Advance?
Good planning always
ensures stable finances. Calculating the Bandhan bank credit card EMI in
advance gives a better understanding of the amount of money you would have to
spend every month. Hence, you can plan well and decide whether you are able to
spare that much money or not.
Components of a Bandhan
bank credit card EMI Calculator?
- Amount
of loan to calculate EMI
- Loan
term (months or years) to calculate EMI
- Rate
of interest (percentage) to calculate EMI
How to use Bandhan bank
credit card EMI Calculator?
Using the EMI
Calculator is a very simple process. All you need to do is follow these steps–
· Go the Bandhan bank credit
card Loan EMI Calculator page
· Choose the loan amount,
rate of interest, and tenor (in months)
That’s all! You will
instantly get your Bandhan bank credit card EMI amount along with the interest
amount payable on the loan.
What are the Advantages
of a Bandhan bank credit card EMI Calculator?
A Bandhan bank credit
card EMI Calculator helps you to decide whether you can afford the financial
commitment of a Bandhan bank credit card in the long term. If you want, you can
increase or decrease your EMI amount depending on the amount of loan you are
taking and the time period for which you’ll be paying the EMIs.
Quick Results – Applicants can
easily use this calculator to calculate the EMIs that they will be liable to
pay for the pre-determined tenure and interest rate that the Bandhan bank
credit card loans are offered, in mere seconds.
Simplicity – The
calculations using this EMI calculator for Bandhan bank credit card Loan are
based on the applicant providing three key bits of information i.e. the
principal amount of the loan, the applicable rate of interest and the loan
tenure.
Varying Combinations – With the Bandhan
bank credit card Loan EMI calculator, you can easily input different interest
rates and tenures to look for a combination that will allow you to easily repay
the principal amount, without putting undue pressure on your finances.
Free Usage – The EMI-Calculators.com’s Bandhan bank credit
card Loan EMI calculator is a user friendly Bandhan bank credit card Loan
calculator that is available to everyone free of charge and is easy to use
What Is a Bandhan bank
credit card EMI Amortization Schedule?
A Bandhan bank credit
card amortization schedule is the table or record which details all the
periodic payments on your loan. This is generated through an amortization
calculator.
Amortization is
basically the procedure of repaying a loan through regular payments over a
specified period. An amortization schedule is the total tally of loan payments
showing the amount of interest and principal contained in each payment, until
the loan is repaid in full.
What are the factors that
impact monthly Bandhan bank credit card EMI?
The estimated monthly
investment (EMI) depends on a number of factors such the amount, the tenure of
the loan, and the interest rate. The estimated monthly investment (EMI) differs
according to the loan type and the amount. If the interest rate of the loan is
fixed, the estimated monthly investment remains fixed as well for the entire
time the loan is active. The borrower can also opt for a pre-payment wherein
the estimated monthly investment (EMI) gets reduced. If the interest rate is
floating, the EMI is also floating.
What is Flat/Fixed Rate
of Interest? And Flat/Fixed Rate of Interest Effect your EMI for Bandhan bank
credit card?
A fixed rate of
interest is one where the interest rate on a loan remains fixed throughout the
loan repayment period (loan tenure). This type of interest rate is
comparatively higher than a floating rate of interest. Fixed rate of interest
is better for those who don’t prefer the risk of fluctuation that is an
integral part of a variable interest rate. In the case of a fixed rate of
interest, the loan EMI remains the same throughout the loan tenure.
The online loan EMI
calculator can be used to calculate loan EMIs with a fixed rate of
interest. The different Interests Rates that can be implied in a Loan
contract are Fixed Interest Rate and Floating Interest Rate.
Fixed Interest Rate
means interest payment on loan will be in fixed equal installments over the
entire period of the loan. The interest rate will not change regardless of any
market fluctuations.
Benefits of Fixed
Interest Rate:
- Interest
Rate does not change as per the market fluctuations
- Having
a fixed interest rate brings a sense of safety and security for the
borrower
- Since
it entails a fixed monthly repayment schedule, it helps in easy budgeting
Drawbacks of Fixed
Interest Rate:
- Generally,
Fixed Interest Rates are 1%-2.5% higher than Floating Interest Rate
- Fixed
Interest Rates are subject to change as per the market fluctuations, hence
if by chance the interest rate decreases, the fixed rate Bandhan bank
credit card won’t be benefited as the borrower will have to pay the same
fixed amount every month.
What is Floating Rate of
Interest? And Floating Rate of Interest Effect your EMI for Bandhan bank credit
card?
Floating rate of
interest changes depending on the market-lending rate. It is also known as
variable rate of interest. If the lending rate increases, the floating interest
rate will also increase. Due to the risk of fluctuation, the floating rate of
interest is usually lower than the fixed rate of interest. With a floating rate
of interest for a specified loan tenure, you can either expect your EMI to
reduce or increase depending on the rise in the interest rate.
The online loan EMI
calculator for Bandhan bank credit card can be used to calculate loan EMIs with
a Floating rate of interest.
Floating Interest Rate
is the rate which changes as per the market conditions. Loans on floating
interest rates are tied to a base rate PLUS a floating element thereof.
Benefits of Floating
Interest Rate:
· Floating Interest Rates
are cheaper than Fixed Interest Rate
· During the long term,
even if the floating interest rate rises up the fixed interest rate, they will
eventually fall. Hence ensuring a lot of savings.
Drawbacks of Floating
Interest Rate:
Due to frequent
fluctuations in interest rate, the nature of monthly installments is quite
uneven.
Hence it is necessary
that you conduct a proper cost and benefit analysis before choosing among Fixed
and Floating Rate of Interests.
Why should I use a Bandhan
bank credit card EMI calculator?
The simplest answer is
that it’s fast and it’s convenient. This means that you can do multiple
calculations in minutes where such calculations many take longer were you to
sit down with a pen and paper. These calculators are also super accurate, so it
eliminates the possibility of errors in calculations, provided you provide
accurate data.
Will banks provide the Bandhan
bank credit card EMI calculator?
Yes. These days most,
if not all, banks have Bandhan bank credit card EMI calculator, specific to
various loans, available on their websites.
How much should I pay as
monthly EMI for Bandhan bank credit card?
Monthly EMI for Bandhan
bank credit card depends upon your income and expenses. Generally, banks advise
you to limit your EMI to 35% to 45% of your net income so that you can pay your
EMI without any burden or difficulty. You can calculate your EMI online which
will help you to know your repayment capacity.
What if I miss EMI
payment for Bandhan bank credit card or there is an ECS bounce?
If you miss your EMI
payment on your Bandhan bank credit card or if there is an ECS bounce then bank
may charge a penalty. In addition, it will also be reflected in your CIBIL report and
your CIBIL score may get
impacted.
What if I get delay in
paying the Bandhan bank credit card loan EMI?
Banks charges penalty
for delaying EMI payment for Bandhan bank credit card. The amount of penalty
varies from bank to bank. This also impacts your CIBIL Score.
What is No-Cost EMI on Bandhan
bank credit card?
No-cost EMI’ offers on
the online retailers
Essentially, you pay the
original price of the phone in instalments: the retailer gets the discounted
price and the balance (i.e., the ‘discount amount’) goes to pay the interest on
the loan.
How does the EMI on Bandhan
bank credit card work?
Bandhan bank credit
card companies make money by earning interest on late payments that you make.
… EMI on Bandhan bank credit cards work much like a home loan or a personal
loan – you pay the principal and interest each month and clear off your debt
over a period of time. Put it simply, that is how EMIs on Bandhan bank credit
cards work.
Can we pay EMI using Bandhan
bank credit card?
Debt Service – Make a
Payment
You may pay your Loan
EMI / Bandhan bank credit card overdues through below payment options: ‘Click
to Pay’ offers payment facility using Net Banking of over 50 banks. You can
view the outstanding amount against your any Bank Loan as on date before
making the payment.
What if I pay more than
EMI in Bandhan bank credit card?
If you opt for an EMI
facility, the EMI amount will get reflected on your monthly Bandhan bank credit
card bills along with your other dues. If you fail to pay your Bandhan bank
credit card dues in any month, you will be charged a hefty interest of anywhere
between 24%-36% for non-payment
How the No-Cost EMI
Scheme from Banks Work?
Here are the steps:
Divide the item cost by
the number of months of EMI to arrive at EMI amount (say Rs X).
Figure out the loan
amount (L) (at a certain rate of interest and no. of months) that would result
in EMI of Rs X.
Your discount is Item
Cost – Loan Amount. Your Bandhan bank credit card will be charged Rs L. This
amount will be converted into EMIs.
You will have to pay
EMI for loan tenure. GST is charged on the interest amount.
Where Can I get No Cost
EMI?
· Amazon
· Flipkart
· Snapdeal
· Myntra
· PayTm
· Jabong
· PhonePe
· Mobikwik
Bandhan bank credit
cards can also be used on below online food delivery and cab booking companies.
· Swiggy
· Ola
· Uber
· Zomato
· Oyo
· GoIbibo
· Zoomcar
Why it is necessary to
calculate EMI beforehand?
It is important to
calculate your EMI in advance to maintain stability in future payments. When
you avail loan for your Bandhan bank credit card, you promise the bank to pay a
fixed amount at fixed date every month. So, before availing the Bandhan bank
credit card you should consider the stability of your income, monthly expenses
and the existing loan obligations to avoid any discrepancies in future
payments.
Does the loan tenure
affect my EMI for Bandhan bank credit card?
Bandhan bank credit card
can be availed for maximum tenure of 20 years. Tenure affects your monthly EMI.
Longer the tenure of Bandhan bank credit card, lower will be your EMI.
Must Know things before
you have Bandhan bank credit card EMI:
Can I foreclose my Bandhan
bank credit card EMI?
Yes, you can clear the
future EMI of your Bandhan bank credit card by paying the total outstanding in
one go. But, you should first ask the concerned bank regarding the same. …
And, if your lender does not charge on the foreclosure, it would be better
going with your impending move of paying the entire outstanding.
What happens if you don’t
pay EMI?
What happens if I miss
my EMI payment? You can only miss your EMI if you have insufficient funds in
your bank account. Few days grace period will be given to you to pay your EMIs.
Further delay in payments will be reported to CIBIL and will have
financial charges.
Should I pay my Bandhan
bank credit card EMI/ bill early?
At a minimum, you should
pay your Bandhan bank credit card bill or EMI before its statement due date.
You can never pay your Bandhan bank credit card too early but be sure to check
the statement period to which your early payment will be credited.
What happens if I only
pay the minimum payment on my Bandhan bank credit card?
What Happens If I Make
Only the Minimum Payment on My Bandhan bank credit card? Paying only the
minimum keeps you in debt longer, costs you money in interest and could hurt
your credit score. … If you pay the minimum toward your balance each month,
here’s what you can expect to happen: Paying down your debt will take much
longer.
Can I foreclose my Bandhan
bank credit card EMI?
Yes, you can clear the
future EMI of your Bandhan bank credit card by paying the total outstanding in
one go. But you should first ask the concerned bank regarding the same. And, if
your lender does not charge on the foreclosure, it would be better going with
your impending move of paying the entire outstanding.
How can I avoid paying
interest on my Bandhan bank credit card?
The best way to avoid
paying interest on your Bandhan bank credit card is to pay off the balance in
full every month. You can also avoid other fees, such as late charges, by
paying your Bandhan bank credit card bill on time.
Is Bandhan bank credit
card EMI better option?
Although a good EMI
scheme is easy on your wallet, you must try to avoid it as the first option.
You may not only be spending more than the actual worth of the product, but
also splurging first and then relying on EMI payments is not healthy for your
finances.
Is Bandhan bank credit
card EMI good?
The best form of the
EMI option is where there is no interest charged on the payment. … So, an
expense of Rs 12,000 spread over 12 months will lead to an EMI of Rs 1,000 a
month, that will come in each month’s Bandhan bank credit card bill.
How is EMI deducted from Bandhan
bank credit card?
The entire amount will
get deducted if a purchaser purchases anything on EMI using his Bandhan bank
credit card. The amount is released as on when the payment towards the EMI is
made. EMI is similar to a loan you have taken to buy phone or whatever, which
has been fully paid by bank to flipkart or to the merchant.
Who is eligible for Amazon pay EMI?
You must be 18 years of
age or above. Further eligibility is decided basis information already
available with Amazon and your credit bureau history. Based on
these and a host of other factors, Lending partner will decide the Amazon Pay EMI limit for you.
What is Bandhan bank
credit card EMI scheme?
To facilitate Bandhan
bank credit card EMI option, banks charge a loan processing fee upfront. The
loan processing fee varies from bank to bank and is usually 0.5% to 1% of the
amount of your purchase. Interest. Bandhan bank credit card EMI facility allows
you to repay in easy instalments up to 24 month tenure. Some cards allow up to
36 months.
Is Bandhan bank credit
card EMI good or bad?
Although a good EMI
scheme is easy on your wallet, you must try to avoid it as the first option.
You may not only be spending more than the actual worth of the product, but
also splurging first and then relying on EMI payments is not healthy for your
finances.
Is Bandhan bank credit
card necessary for EMI?
Typically, you would
associate EMI with a Bandhan bank credit card or a loan. If you don’t own a Bandhan
bank credit card and would still prefer paying in instalments, you can use your
Debit card to make select purchases on EMI. By the way, Debit Card EMI is not a
concept launched by flipkart. Amazon also offers the scheme
Step by step guide before
having Bandhan bank credit card EMI:
Step 1 : Check Bandhan
bank credit card EMI and calculate Bandhan bank credit card eligibility – Bandhan
bank credit card EMI Calculator
As you decide to take a
Bandhan bank credit card, always estimate your loan amount eligibility to know
the loan amount you will be eligible for and can apply for. Also calculate the
monthly EMI that you can comfortably service given your net take personal
salary and other existing fixed obligations including rent and EMIs on other
existing loans, if any. Your Bandhan bank credit card eligibility is calculated
based on your age, net income, existing obligations, property type, LTV ratio
and other factors. EMI is dependent on the loan amount, interest rate and
tenure. Once you understand your minimum loan requirement, your eligibility and
monthly EMI you can comfortably service, shortlist the banks which offer you
maximum loan amount to meet your requirements.
Step 2 : Check loan
approval status and legal documents – Bandhan bank credit card EMI Calculator
If you are buying a
property from builder, then check for the banks which have approved the
projects you have shortlisted. For resale property, check the approved map
plans and ensure that all property registration papers for the complete chain
from the first owner to current owner are in place. Shortlist the banks which
lend on your chosen property.
Step 3 : Decide on type
of Bandhan bank credit card interest rate offers – Bandhan bank credit card EMI
Calculator
As you narrow down the
list of banks in Step 2 and 3, you need to conduct an interest rate on Bandhan
bank credit card comparison of the loan offers of various banks. Some of the
interest rate offers that needs to be checked are:
Choice between fixed
and floating rates – Fixed rates come at a slightly higher rate of interest
compared to floating rate loans and interest rate remains constant during the
tenure of Bandhan bank credit card. In floating rate loan, interest rates are
reset at periodic intervals in response to changes in MCLR and PLR rates of
banks or NBFCs. Majority of Bandhan bank credit cards in India today are
floating rate loans as it allows the borrowers to get Bandhan bank credit card
interest rate in line with the current interest rates.
Decide if you need a
home saver loan – This is a loan with overdraft facility which allows you to
deposit surplus amount in your Bandhan bank credit card overdraft account as
and when available, allowing you to reduce your overall interest amount. This
loan is highly recommended for salaried individuals with high bonuses and self
employed business which is seasonal and has fluctuating cash flows. The
interest rates on overdraft loan is slightly higher than that of a regular Bandhan
bank credit card interest rate.
You can also evaluate a
mortgage guarantee Bandhan bank credit card as it covers any default risk and
allows the lender to give you loan at low rate of interest. You will however
need to pay a mortgage guarantee fee to the bank.
Check and compare the
current Bandhan bank credit card interest rates of the banks on various types
of loan products and take an informed decision.
Step 4 : Compare
shortlisted banks | Bandhan bank credit card EMI Calculator
In addition to interest
rates, banks also charge many other fees on Bandhan bank credit cards. Along
with interest rates, you should check other associated costs with a your loan
which include prepayment charges, processing fee, insurance premium and other
charges offered by the shortlisted banks. You should calculate all inclusive
costs on Bandhan bank credit card to be able to further shortlist the banks and
reduce your choice to 2-3 banks.
You can take the help
of loan advisors of online on various websites listed below.
·
https://www.paisabazaar.com/
·
https://www.bajajcapital.com/
Step 5 : Select the bank
based on other service related parameters | Bandhan bank credit
card EMI Calculator
Finally as you decide
to take the loan, also consider other service and transparency related
parameters of the chosen banks. Some of these factors are turnaround time
offered by the banks, quick loan delivery, doorstep services, transparency in
the loan process. You also need to understand the trends and changes in MCLR
rates over a period of time. Last but not the least, read reviews of existing
customers on banks on their services, interest rates and transparency to take
your decision to borrow from a bank.
Bank specific Bandhan
bank credit card EMI Calculator FAQs
1. What benefits do I get by calculating my
EMI before taking an SBI property loan?
Calculating your EMI
before taking a loan can help you in the following ways:
You can manage your
monthly expenses better. Once you know how much you have to pay towards your
loan each month, you can then budget the other expenses accordingly. You will
be able to determine what tenure to choose depending on how much you can afford
to repay every month. Planning prepayments and pre-closures can be done easily,
helping you pay off your loan faster.
2. Will my EMIs change
in case of prepayment?
When you prepay a part
of your loan, the outstanding principal will reduce. This allows you to opt for
a lower EMI while keeping the loan tenure the same. Or, you can maintain the
same monthly instalment as before and reduce the tenure of the loan. It is
advisable to maintain the same EMI and reduce the tenure since this will reduce
the amount of interest you pay in the long run.
3. Can I use the same
EMI calculator for all banks?
Yes. An EMI calculator
is a common tool and is not tied to any bank or financial institution. If you
know your principal, interest rate, processing charges, and tenure, you should
be able to generate your EMI. BankBazaar’s calculator also allows you to factor
in prepayment details.
4.How accurate is an
EMI calculator?
An EMI calculator
estimates your loan repayment details based on the data you give it. But the
EMI that your bank gives you may be a little different due to other charges
involved in the calculation. Also, if your Bandhan bank credit card is subject
to a floating rate, then the interest rate changes every year based on the MCLR
or base rate change. Even a slight change in interest rate will make a
difference to the total loan amount you repay, depending on the duration of the
loan. These variables limit the accuracy of an EMI calculator.
5. Why are the interest
charges in the repayment table slightly higher during the initial months of the
loan?
The interest rate of
your loan is applied based on “reducing balance principle”. Because of this,
the interest will be slightly higher during the initial phase since the
principal outstanding is higher. As this amount reduces, the incidence of
interest will also come down proportionately.
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