What is EMI?
Equated Monthly Installment-EMI' A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
What are the factors affecting an EMI?
The EMI of a loan depends on three factors :
1) Loan amount :
This stands for the total amount that has been borrowed by the individual.
This stands for the rate at which the interest is charged on the amount borrowed.
3) Tenure of loan
This stands for the agreed loan repayment time frame between the borrower and the lender.
Considering the above mentioned three governing factors, the EMI payments are directly proportional to loan amount and interest rates and are inversely proportional to the tenure of loan. The higher the loan amount or interest rate, the higher is the EMI payments and vice versa. In case of tenure of loan, though the amount of total interest to be paid increases with the increase in tenure, the EMI payments decrease with the increase in tenure.
Equated Monthly Installment (EMI) loan @11% p.a. interest is now available to the customers for repayment of their gold Loan liability which is payable in easy equal 3,6,9,12,24 monthly instalments.
For an EMI loan of Rs.5000/-for, a period of 12 months the instalment amount payable every month is only Rs.473/-. If the term is 24 months the installment amount comes to only Rs.264/-. The monthly instalment amount includes interest for the loan. The minimum amount of loan is Rs 5000/- and in multiples of Rs.500 /- thereafter. The monthly installments also can be remitted in advance in which cases a discount will be available for such remittances.
GOLD LOAN -PART PAYMENT FACILITY: - EAZY & FLEXIBLE REPAYMENTS
The facility of part payment in convenient installments is available for gold loan amount and its interest. If the payment of interest that is due up to the present date is remitted at any day, then the minimum interest rate of that particular scheme will be eligible for the loan from that date onwards. For loans which are more than one month old, a minimum of one month interest has to be collected. Whereas if the interest due is more than 8 months, then the customer should pay at least half of the interest
ONLINE GOLD LOAN
This is a new product launched by Muthoot Mercantile Limited. With an online gold loan, customers can make repayment of their loan as a part payment or full settlement at any time from any place. On availing a loan for the first time and after settlement of the said liability, the customer can avail subsequent loans online provided he is depositing his gold ornaments with the company after full settlement of the first liability. In this case, the loan amount is instantly credited to your savings bank account registered with us, whenever the customer request for a loan again in future. The loan is disbursed on the basis of the value of gold pledged at the branch. The part payment and full settlement made online will be effective on the same day to the customer’s loan account. The customer can avail this facility by using their email and password.