When opting for loan, there are various factors one would need to consider. Some of the important factors include interest rates, principle amount and even the repayment tenure. In addition to this, the applicant would also need to consider the EMI's.
Equated monthly instalments also known as EMI's specifies the number of months you have to pay the sum of the interest and principal each month which contributes to repaying the borrowed loan amount. However, without proper planning and decision, an applicant would find himself burden with high EMI's till the end of the repayment tenure. Here are a few factors one can consider when avoiding tedious EMI's during a loan application:
Approach a reputed financial institute
With plenty of financial institutes that offer different kinds of loans, one would be spoilt for choice. Although there are plenty of choices available, very few institutes will offer you good quality services and products that one can take advantage of. Several financial institutes will offer you good rates and great deals on your loans. However, once the loan application is accepted, one may find themselves with high EMI's due to lack of transparency during the processing of the application. When such a situation occurs, it is the applicant that bears the brunt of the high Emi's.
Use an EMI calculator
Another option to consider is using financial tools like the EMI calculator. An applicant can approach several banks and look at the rates that are being offered. Once the applicant is aware of the rates, they can be used in the EMI calculator to calculate the ideal rate. Products like the EMI calculator for home loan, car loan or even the personal loan can assist an applicant in making a calculated decision for the borrowed funds. Since these calculators incorporate the factors of income, interest rate, principle amount and repayment tenure, an applicant will have a good idea of what to expect in the loan application.
Co - applicant
Most financial loans are made for the requirements of a single income individual. However at times, these loans can be a strain on the financial habit of the individual. In such a case, individuals can opt for a co - applicant for the loan. Through this process, the EMI's are paid through the income of two individuals and not one. This releases the financial pressure on the single applicant. One can easily use the Emi calculator like the EMI calculator for home loan, car loan or even the personal loan to calculate the ideal EMI based on a joint income.
Loans are designed to provide financial assistance and ease any financial pressure. But in turn, one should ensure that the EMI's should not be a strain on the finances of the applicant. By avoiding high EMI's one easily use these borrowed funds as per their financial requirements without any additional worry.