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Loans

Annual Reducing Method

Let's dive into the concept of diminishing balance method, a technique used to calculate interest on loans. The reduced principal is taken into consideration at the end of each year, but since loan repayments are based on Equated Monthly Installments (EMI), the interest is calculated on the original loan amount for twelve months. Afterward, the payments towards the principal are factored in. This approach may not be the most advantageous for borrowers.

Eligibility

Lenders have established a commonly accepted set of standards to assess an individual's eligibility for a loan. This criteria takes into consideration both the borrower's wi...

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Amortisation

Amortization refers to the gradual decrease of a sum of money over a specific period. This is commonly seen in loan repayment, where the borrower makes regular payments to r...

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Tenure

In the world of finance, there exists a period known as the 'loan term'. This term refers to the time frame between the disbursement of a loan and the final payment, whether...

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Down payment

When buying a home or a car, you may need to pay a certain amount of money upfront to cover the gap between the purchase price and the loan amount. This is known as a down p...

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