having easy access to credit in time of need is highly empowering. the ability to source money at short notice to meet immediate financial requirements, and repay it in small instalments over a period of time can make a big difference in anyone’s life.
when you have a large credit liability but a small monthly budget, you can take the help of an equated monthly instalment, most commonly called as EMI, to enable you have easy access to credit and later, you can repay your loan over a tenure in small amounts. however, the longer the duration of repayment, the more interest you have to pay. but if you have surplus funds at your disposal, you can reduce the burden of repayment significantly by advanced EMI payment option.
when it comes to EMIs, there are generally repayment options – regular EMI payment and advance EMI payment.
what is a regular EMI payment?
regular EMI payment is the most common EMI option where the borrower pays EMI every month over a specified period known as the repayment tenure or loan tenure. the principal loan amount is credited to the borrower’s account in its entirety, and repayment begins only thereafter. in regular EMI payment option, the equated monthly instalment component includes both - the principal and interest amount. the EMI to be paid remains constant throughout the specified repayment tenure.
what is an advance EMI payment?
the advance EMI payment option is for those borrowers who have surplus funds at their disposal to pay their EMIs in advance. nowadays, many leading banks and NBFCs are offering this type of loan. when you choose the advance EMI payment option, your repayment bank account will not be debited for monthly EMIs against the corresponding period. however, you should note that making an advance EMI payment will not affect the loan interest rate in any way, since the amortization schedule will remain the same.
what are the 5 benefits of opting for advance EMI payment?
there are multiple options available in the market today that provide easy access to credit. having the power to increase your spending limit with a limited monthly budget is one of the greatest strengths of the modern financial system. many financial lenders and banks are increasingly offering more flexible repayment options to make it easy for consumers to access credit and pay back their loans. as a consumer, you have the option to either repay your EMI in a regular method or make an advance payment on your EMI. however, when choosing between the two options, make sure you select the advanced EMI payment option only if you have enough surplus funds to pay an advance EMI. before making a final decision, take a look at your income and expenditure ratio and then select the right repayment plan. to help you with the EMI repayment calculation, CRED has released an easy and free EMI calculator. you can select the EMI amount, loan tenure, and interest rate to get the payment breakup component, including the principal and interest amount. click on the link provided below to use the CRED EMI calculator.
how to use the CRED EMI calculator?
you can follow the simple steps provided below to use the CRED EMI calculator: