How to Calculate EMIs for Corporate Finance?

 

At the time of borrowing, the first and foremost consideration should be debt repayment. Therefore it is important to understand the aspects of paying the equated monthly installment. During borrowing, it is very important to understand that with the right monthly installment, borrowing does not become a burden on you. Therefore, everyone that takes a loan needs to understand the different ways by which you can calculate the monthly installment before taking a loan and manage finances in the right order. To make it easy, a loan calculator is always helpful that helps you to calculate your monthly installment accurately for your personal or online business loan within a few seconds.

What is an EMI?

An EMI Is a monthly installment that is equated based on the principal loan amount, rate of interest, and the tenure of the loan. To make loan repayment easy, the repayment is done with the help of equated monthly installment where three elements are calculated to get an amount that a borrower needs to pay every month till the end of Tenure to settle down the loan. It is easier and smooth when you choose the right installment amount that does not become a burden on you.

What is an EMI calculator?

It is simple to use a loan calculator at the time of calculating the equated monthly installment alone. It is an end-specific special calculator that is only used for calculating loan-related calculations and not the common ones. You will find an online loan calculator on various digital platforms that are completely free of cost. It offers instant and accurate calculation without any room for miscalculations. Check your credit score now!

How to calculate?

●     To get the equated monthly installment, you need to calculate 3 aspects, rate of interest, loan tenure, and principal loan amount. The formula is given below.

●     Principal loan amount + rate of interest / the number of months in the loan tenure. This will help you get the equated monthly installment that you need to pay every month. Now, it depends on you that whether you will choose a high amount or a low amount to pay every month. When you choose a long-term loan the equated monthly installment amount is low, when you choose a short-term loan the amount will be high. A borrower must take into consideration the repayment capacity before choosing the right installment amount

Wrapping up

At the time of taking a business loan, a business loan calculator is a must-have. New business loans are very popular nowadays to help small-scale businesses grow and expand.

Must Read : Loans You May Avail for Your Business Venture Without Security

Home Loan Application – What Documents Do You Need?

 

Are you applying for a home loan? If yes, you need to get your home loan application and documentation in the right order. For a fast home loan approval, documentation plays a vital role in validation and verification. You need to fill up the application form properly and do not leave any information empty. Do not forge any information as you need to provide supporting documents for everything that you provide in your application. If you do not provide all the necessary documents, your loan application will be suspended or rejected. Documents are different for salaried and self-employed individuals.

You must take care of the duly filled application form and the below necessary documents, as required. Learn How to calculate business loan by using business loan calculator.

Identity Proof

●     Aadhar card

●     Pan card

●     Driving Licence

●     Passport

●     Date of birth

●     Voter ID card

Address proof

●     Electricity bills

●     Telephone bills

●     Voter ID card

●     Aadhar card

●     Ration card

●     Water bill

●     Mobile bill

●     Broadband bills

●     Property tax

Account statement proof

●     Last 6 months Bank Account Statements for all Bank Accounts held by the applicant

●     If any previous loan from other Banks then Loan A/C statement for last 1 year

Self-employed documents

●     Business address proof

●     Property details

●     Business License Details

●     Certificate of qualification

●     IT returns for last 3 years

●     TDS Certificate

●     Balance Sheet & Profit & Loss A/c for last 3 years

●     Form 16

Salaried employees documents

●     Salary slips

●     Salary account statement

●     Form 16

●     Employment proofs

●     IT returns for 2 years

●     Salary certificate

Common documents

●     Loan application form

●     2 passport size photograph

Property documents

●     Permission for construction

●     Letter/Stamped Agreement for Sale

●     Share Certificate

●     Occupancy Certificate

●     Maintenance Bill

●     Payment Receipts or bank A/C statement showing all the payments made to a seller

●     Electricity Bill

●     Registered Agreement for Sale

●     Allotment copy

●     Approved Plan copy

●     Registered Development Agreement of the builder

●     Property Tax Receipt

●     Conveyance Deed

Wrapping up

Home loan applications and documentation are very important to get approval. If you need a fast home loan approval without any delay, you need to complete your application with the documentation. Submit all the original copies, and do not forge any documents as that will straightaway be rejected.

Must Read : 5 Things You Didn’t Know About Home Loan in Delhi

Negotiate the Best Terms while Applying for Home Loan

 

While applying for a home loan, you must negotiate with your loan provider. A homeowner needs to meet the eligibility criteria and then negotiate terms using those factors. When you negotiate you get not only favorable terms but also rates and charges. It is always safe to have an affordable home loan. You cannot opt for an expensive home loan for years. This will become a burden. A home loan goes on for 20 to 30 years, and you cannot afford to pay a high rate of interest. It becomes a burden and you end up being in a debt trap. To avoid all these uncertainties, you need to negotiate on the following terms at the time of taking a home loan.

●     Rate of interest: You must negotiate with your loan provider to get a low rate of interest. If you are meeting all the eligibility criteria you are an asset you have the complete right to negotiate and get a better rate. The more you negotiate, the better rate of interest you get. Even a slight change due to negotiation will impact a lot in the long run. It is not a fixed rate and is subject to changes and variations. If you need an affordable loan, you need to negotiate. The rate of interest can either make your loan expensive or affordable. It depends on you how well you negotiate and get an ideal rate of interest on your home loan. Learn How to calculate business loan by using business loan calculator.

●     Charges: Various charges come along with your borrowing. When you take a home loan you need to incur the charges. You must negotiate with the loan provider on getting a low-cost loan. The charges are not fixed. They are variable and you need to choose an ideal loan that has an affordable cost. When you negotiate for low charges on your home loan, it becomes an affordable loan. An affordable home loan will help you get the best loan cost after you have compared all the available options from the market.

●     Tenure: Negotiate on the terms of the tenure of the loan. If you need a long-term loan and your loan provider is offering you a short-term loan you can negotiate for a better term on loan. This will help you deal well with the home loan and get an EMI that suits you well.

Wrapping up

Whether you take a home renovation loan or a house repair loan, you need to negotiate on getting an affordable loan. You cannot go for an expensive loan, as that turns on to be a debt trap later on.

Read Story : Mind-Numbing Facts About Getting a Housing Loan

Here’s How Your Gold Ornaments Can Help You Get Access To Credit

There's a lot of popularity about a gold loan in India. There are many families that opt for a gold loan to get instant cash to meet any need or emergency. A gold loan is indeed one of the fastest ways to attain instant cash in your account. However, there are many that feel that giving away gold is not a good choice. Gold is taken as a security or an asset for Indian families. It is important to get access to instant credit at the time of an emergency or any instant need. With gold ornaments, one can attain easy funds within 24 hours. It is a safe way, and quite affordable. Find out everything about a gold loan before you choose to go for it. 

What is a gold loan?

A gold loan is a secured loan, where you keep your gold ornaments as collateral or security with banks or non-banking financial institutions and in return, you take the money of the same value. If you pledge gold ornaments of 2 Lakhs, you pay the amount back in cash. This is not selling your gold way. After you receive the money, you pay the EMI along with the interest amount. When you complete the debt repayment, you get back your same gold ornaments. The rate of interest is low as it is a secured form of a loan.

Documentation for gold loan

It is very easy to get a gold loan. You need to submit documents like an Aadhar card or Pan card. As you are already pledging your gold ornaments there is no need for approval or documentation process. It is easily done. For Business Loan visit : business loan apply online.

The interest rate for gold loan

A gold loan is a secured loan and the rate of interest is always low. However, there are various banks and non-banking financial institutions offering gold loans. Hence, it is recommended for you to have a check on the loan providers before you choose the lowest rate.

Use a gold loan to build credit

Yes, you can use a gold loan to build credit. When you make the payment for getting back the gold ornaments, these payments are reflected in your credit report and improve your credit score. You can get your free credit score check done from Clix Capital to monitor your score.

Wrapping up

It is important to track and monitor your free credit score. Gold loan is usually taken by those that do not have a good credit score to take a personal loan. Start your free credit score check today and keep yourself updated about your credit eligibility.

Must Read : The Benefits Of Joint Home Loans

Reasons Why Your Home Loan Application Getting Rejected

 

Getting a home loan application rejected means a significant part of your happiness goes away. The joy of having own home is undoubtedly the best thing for an individual. It is not just happiness, but financial stability and you get to secure your future with a home. A home is a property and probably the biggest investment or possession. However, a home loan is a high-value loan and probably this is why the number of rejections is high. Since the amount even exceeds crores, the eligibility screening is really strict. Any issue or matter of instability in finance, your home loan application is straightaway rejected. Find the probable causes why a home loan application can be rejected:

●     Forged documents: For a home loan, the documents are the most important aspect. The property and NOC papers from the property dealer or owner are strictly checked. If you forge any document or you are not able to provide any piece of document, your loan application gets rejected.

●     A low credit score: A low credit score, which is probably below 600 or 650 will not provide you with a home loan. Since it is a high-value loan the need for financial stability and good health is important. One needs to maintain a good credit score in order to get a home loan. This is one of the common reasons for home loan rejection.

●     Low income: It takes years for individuals to buy a home. Why so? This is because a home loan takes away a huge chunk of income because the EMI is always high. You need to have a good income in order to accommodate a home loan from your income. Therefore, if your income is not stable and good enough, the reason for the rejection of a home loan is simply this.

●     Property issues: If you are trying to buy a property that is not good, has a lot of legal matters, and negative influence, the banks will not offer you a loan as there will be a risk. A bank or an NBFC is always going to sponsor a property that has a reputed builder, a good location and everything else looks safe and sound.

●     Income stability: The source of income, be it employment or business should be stable. With an unstable source of income, getting a home loan will not be possible.

Wrapping up

Do you know the best way to get a home loan? One needs to maintain a good credit score and have a stable income. This makes it very easy for you to get a house repair loan or home loan from Clix Capital at the best rate of interest.

 

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