Interest Rate

A loan's interest rate is the borrower's cost to use the lender's money. It is a percentage of the loan amount added to the loan balance over time. It is either fixed or adjustable, with fixed rates remaining the same for the life of the loan, and flexible rates change periodically based on market conditions. Several factors influence the interest rate, including the lender's cost of funds, the borrower's credit score and financial history, and the type of loan. Higher interest rates are generally charged for riskier loans, while lower interest rates are offered for safer loans with lower risk.

EMI Calculator

An EMI (Equated Monthly Instalment) calculator assists in calculating the monthly payment on a loan. It takes into account the loan amount, interest rate, and loan tenure to calculate the monthly payment the borrower needs to make to repay the loan in full. The EMI calculator uses the following formula to calculate the monthly fee:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where P is the loan amount, R is the monthly interest rate, and N is the number of monthly payments.

Using an EMI calculator can help borrowers determine their monthly payment and budget accordingly and compare different loan options based on the interest rate and loan tenure to choose the best option for their needs.

The Credit Bureau of India (CBI) is a credit information organisation that collects and maintains the credit history of individuals and companies. It provides credit information to banks, financial institutions, and other lending organisations to help them assess the creditworthiness of potential borrowers. The credit information includes details about the borrower's loan and credit card history, payment history, and any adverse events such as delinquencies or bankruptcies. The CBI uses this information to generate a credit report, which lenders use to make informed lending decisions. A good credit history and high credit score can improve a person's chances of obtaining a loan at favourable terms, while a poor credit history can make it more difficult to receive credit.