EMI Loan

EMI -An equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loans paid off in full. The borrower makes fixed periodic payments to the lender over the course of several years with the goal of retiring the loan. EMIs differ from variable payment plans, in which the borrower is able to pay higher payment amounts at his discretion. In EMI plans, borrowers are usually only allowed one fixed payment amount each month. The benefit of an EMI for borrowers is that they know precisely how much money they will need to pay toward their loan each month, which makes their personal budgeting process easier

1. EMI (Personal or Business) - EMI is short form “Equated Monthly Instalment” or the Amount that is payable per month if you take a personal loan or business loan of a certain amount for a certain period. The calculation of EMI depends on 3 main factors:

• Personal Loan Amount – The amount of currency value of the loan that you take

• Personal Loan Interest Rate – The interest rate that the bank will charge for the Personal Loan

• Tenure of Personal Loan – The period for which you take the Personal Loan

The screenshot is given below for better understanding from the application. from the screenshot all the loans are generated under the same procedure with the type of loan to be selecting as well as creating a credit account for that particular type of loan with account type as it is a long term liabilities. Loans can be even taken either by short term or by long term