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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.

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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Fixed installment

One fundamental aspect of loans is the concept of fixed installments. This refers to the regular and predetermined payments made towards a loan over the duration of its term...

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EMI

An important concept in finance is the Equated Monthly Installment (EMI), which refers to the amount of money paid by a borrower each month towards the repayment of a loan. ...

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Sale Agreement

A sale agreement is a legally binding contract between parties that outlines the terms for dealing with a property. It grants the right to obtain a sale deed which specifies...

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