Financial education helps you understand various financial jargons
that might create confusion while approaching a lender or in general.
A loan is an integral part of our life, you require a loan at various
instances such as higher education, marriage, or any personal reasons.
There are various types of loans that you get from banks and
Non-banking Financial Companies (NBFCs). These banks and NBFCs are
regulated by banks and the government. Depending upon the economic
conditions of the country, factors such as interest rate increases or
decreases according to the current economic situation.
When you
approach for a loan, there are certain jargons you should be aware
of:
• Loan amount: The term loan amount
indicates the amount that you receive from a lender. The loan amount
depends on factors such as your income and financial condition. For
e.g., a person with a stable income and job and has good CIBIL score
will be eligible for a high loan value.
• Interest
rate: The interest rate is the rate charged on the borrowed
amount by the lender.
• Tenure: It is the time
period decided by the lender and borrower for the repayment of the
loan amount.
E.g., A person who wants to loan of ?1 Lakh. He
approaches a lender who offers a loan of Rs.1 Lakh for a tenure of 1
year at the interest of 10%. This means you have to pay interest of
Rs.10,000 on the loan amount of Rs.1 Lakh.
• Loan amount: Rs.1
Lakh
• Rate of Interest: 10%
• Tenure: 1 Year
Another factor that influences your interest rate is type of interest.
There are two types of interest rates that be imposed on you as a
borrower. Fixed interest rate – the rate of interest will be fixed as
pre-decided between borrower and lender. Another type of interest is
the floating interest rate – when the rate of interest changes as per
the market rates.
Along with the above-mentioned factors,
pre-closure or partial payment also impacts your interest rate. When
you make a partial payment, the overall loan amount decrease which
results in a reduction in the amount on which the rate of interest is
charged.
Furthermore, you can avail of tax benefit as the Income
Tax department provide you tax benefit on principal amount and
interest. You can avail of tax benefit of principal amount under
section 80 C and interest is allowed under section 24. You can claim a
maximum of ?1 Lakh under section 80 C.
How to calculate EMI with Poonawalla Fincorp?
You can apply for your EMI with Poonawalla Fincorp by following
these below steps:
Step 1: Visit the official website of
Poonawalla Fincorp
Step 2: Insert loan amount that you wish to
borrow
Step3: Insert the rate of interest offered by the
lender
Step 4: Enter the tenure – loan duration in the tenure
section
Step 5: You will have your EMI auto calculated after
entering all your details.
To conclude
At Poonawalla Fincorp, you can avail different types of loan such as Personal Loan, Business Loan, Professional Loan, Auto Lease, Pre-owned Car Loan, Home Loan, and Medical Equipment Loan. With Poonawalla Fincorp, there are numerous benefits which includes quick approval, minimal documentations, no hidden charges, online application, competitive interest rates and many more.
