EMI is Equated Monthly Installment. EMI is a fixed payment made by the borrower to the lender at a given date each calendar month. It is usually paid through cheques, online payments or directly debited on the given date from your bank account. EMIs apply to both principal and interest each month and the loan is paid off in full over a given period of time. To know more about EMI, read Best Online EMI Loan App.
ADVANTAGES AND DISADVANTAGES OF EMI
Advantages of EMI :
- EMI options allow you to fulfill your needs and wishes even beyond your reach. For example, you can buy an IPhone even with a small salary with EMI options.
- Through EMI options, you can afford many things in life. You can easily pay off in months to the lender.
- Through EMI you get to pay a small amount compared to the principal amount every month. You know how much you have to pay so it is easy to save money every month. So it is easy on the wallet.
- Several banks and financial institutions allow you now to pay through flexible EMI schemes. Here the lender lets you decide the amount per EMI or the duration based on your income.
Disadvantages of EMI :
- EMIs are designed to extend the loan period which leads to a longer debt period.
- When you opt for EMI options, you in actuality are paying more than the actual price of the product. EMI includes the actual loan amount plus the rate of interest.
- At the moment you might lack the needed amount of cash and so you might opt for EMI options. But in that time period, you might get the left amount and wish to pay the whole amount. For that you will be charged 2 to 3% of the principal amount as a prepayment penalty charge.
- In case you miss paying EMIs on time or default on payments, serious issues might arise. Your lender can even take over your mortgaged asset legally for multiple defaults.
- Skipping EMI payments or defaulting multiple times would negatively impact your credit history which will affect your future EMI options.
- When you opt for EMI options, banks and financial institutions also might charge you a processing fee which is separate from the rate of interests.
BEST ONLINE EMI PAYMENT APP IN INDIA
EMI can now be paid online without downloading the extra banking app. Your convenience app, oneapp, now allows online EMI payments along with hosts of other facilities.
Download oneapp now!
- Once you have downloaded oneapp, you need to register using your mobile number.
- Upon registration you will reach the dashboard of the app where you can find many cards for different actions.
- Scroll to onepay, enter by clicking the ‘Pay Bill’ button.
- You reach another window with several popular services that can be paid online using oneapp.
- Search and click EMI payments.
- It will list down several of the loan providers. Search your loan provider’s name and click.
- Enter your loan account number. It will fetch all your loan data, EMI amount and due date.
- Now click the pay button and pay using your preferred digital payment option.
Do you find EMI convenient or bothersome? Share your views in the comments section.