When one takes a IDBI 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 IDBI bank credit
card EMI will answer all your questions
What is IDBI bank credit card EMI
Calculator?
A IDBI bank credit card calculator helps you
know the amount of the EMIs that you will need to pay towards your IDBI
bank credit card and helps make an informed decision. The
EMI-Calculators IDBI bank credit card EMI calculator also functions as a IDBI
bank credit card interest calculator, as you will be able to know the interest
amount due on your IDBI 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 IDBI bank
credit card interest rate advertised on the website. That’s all!
What is IDBI bank credit card EMI?
EMI stands for Equated Monthly
Instalment. EMI is the monthly repayment that a IDBI bank credit card borrower
must make to repay the IDBI bank credit card within the specified loan tenor.
The following table illustrates the EMI
on several IDBI bank credit card amounts with different tenures. The applicable
rate of interest is 8.60%* onwards.
Factors that Affect IDBI 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.
IDBI bank credit card Eligibility
If you meet the following criteria, then you will be eligible for a IDBI bank credit card from
more than one bank.
Age : The minimum age required to hold a IDBI bank credit card is 18 years, while the maximum age at which a IDBI bank credit card can
be availed is 60 years.
CIBIL Score
: A minimum CIBIL score
of 650 is
required to avail of a IDBI bank credit card. the bank in which the
individual already has an account.
Employment Status : To avail of a IDBI 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 IDBI 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 IDBI bank credit card.
Documents required to apply IDBI bank credit card loan
Salaried Employees:
· Filled up IDBI
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 IDBI
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 IDBI 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 IDBI bank credit card Record
: In case you
already have a IDBI 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 IDBI 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.
IDBI 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 IDBI 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 IDBI 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 IDBI bank credit card?
Calculating the EMI amount on your IDBI
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 IDBI
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 IDBI bank credit card EMI in Advance?
Good planning always ensures stable
finances. Calculating the IDBI 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 IDBI 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 IDBI 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 IDBI
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 IDBI
bank credit card EMI amount along with the interest amount payable on the loan.
What are the Advantages of a IDBI bank credit card EMI Calculator?
A IDBI bank credit card EMI Calculator
helps you to decide whether you can afford the financial commitment of a IDBI
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 IDBI
bank credit card loans are offered, in mere seconds.
Simplicity – The
calculations using this EMI calculator for IDBI 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 IDBI 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 IDBI bank credit card Loan EMI
calculator is a user friendly IDBI bank credit card Loan calculator that is
available to everyone free of charge and is easy to use
What Is a IDBI bank credit card EMI Amortization Schedule?
A IDBI 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 IDBI 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 IDBI 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 IDBI 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 IDBI 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 IDBI
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 IDBI 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 IDBI bank credit card EMI calculator?
Yes. These days most, if not all, banks
have IDBI bank credit card EMI calculator, specific to various loans, available
on their websites.
How much should I pay as monthly EMI for IDBI bank credit card?
Monthly EMI for IDBI 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 IDBI bank credit card or there is an ECS
bounce?
If you miss your EMI payment on your IDBI
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 IDBI bank credit card loan EMI?
Banks charges penalty for delaying EMI
payment for IDBI bank credit card. The amount of penalty varies from bank to
bank. This also impacts your CIBIL Score.
What is No-Cost EMI on IDBI 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 IDBI bank credit card work?
IDBI bank credit card companies make
money by earning interest on late payments that you make. … EMI on IDBI 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 IDBI bank credit cards work.
Can we pay EMI using IDBI bank credit card?
Debt Service – Make a Payment
You may pay your Loan EMI / IDBI 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 IDBI bank credit card?
If you opt for an EMI facility, the EMI
amount will get reflected on your monthly IDBI bank credit card bills along
with your other dues. If you fail to pay your IDBI 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 IDBI 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
IDBI 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 IDBI
bank credit card, you promise the bank to pay a fixed amount at fixed date
every month. So, before availing the IDBI 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 IDBI bank credit card?
IDBI bank credit card can be availed for
maximum tenure of 20 years. Tenure affects your monthly EMI. Longer the tenure
of IDBI bank credit card, lower will be your EMI.
Must Know things before you have IDBI bank credit card EMI:
Can I foreclose my IDBI bank credit
card EMI?
Yes, you can clear the future EMI of your
IDBI 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 IDBI bank credit card
EMI/ bill early?
At a minimum, you should pay your IDBI
bank credit card bill or EMI before its statement due date. You can never pay
your IDBI 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 IDBI bank credit card?
What Happens If I Make Only the Minimum
Payment on My IDBI 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 IDBI bank credit
card EMI?
Yes, you can clear the future EMI of your
IDBI 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 IDBI
bank credit card?
The best way to avoid paying interest on
your IDBI 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 IDBI bank
credit card bill on time.
Is IDBI 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 IDBI 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 IDBI bank credit card bill.
How is EMI deducted from IDBI bank
credit card?
The entire amount will get deducted if a
purchaser purchases anything on EMI using his IDBI 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 IDBI bank credit card EMI scheme?
To facilitate IDBI 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. IDBI 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 IDBI 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 IDBI bank credit card necessary for
EMI?
Typically, you would associate EMI with a
IDBI bank credit card or a loan. If you don’t own a IDBI 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 IDBI bank credit card EMI:
Step 1 : Check IDBI bank credit card
EMI and calculate IDBI bank credit card eligibility – IDBI bank credit card EMI
Calculator
As you decide to take a IDBI 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
IDBI 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 – IDBI 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 IDBI bank
credit card interest rate offers – IDBI 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 IDBI 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 IDBI 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 IDBI bank credit cards in India today are floating rate loans as it
allows the borrowers to get IDBI 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 IDBI 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 IDBI bank credit
card interest rate.
You can also evaluate a mortgage
guarantee IDBI 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 IDBI bank
credit card interest rates of the banks on various types of loan products and
take an informed decision.
Step 4 : Compare shortlisted banks | IDBI
bank credit card EMI Calculator
In addition to interest rates, banks also
charge many other fees on IDBI 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 IDBI 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 | IDBI 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 IDBI 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 IDBI 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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