What is EMI? Uses, Advantages, Disadvantages – EMI Kya Hota Hai? – OnlineHindiTech

In today’s time, when you buy any goods online or offline, there you have to EMI You get the option to fill in the form of money whether you buy a house, a car or a mobile phone everywhere. EMI option is available.

but a lot of people don’t know that What is EMI? EMI Meaning in Hindi? What are its advantages and disadvantages? How to Calculate EMI? But you are going to know the answers to all these questions in this blog post.

If you do not know the important things related to EMI, then you can also get stuck because of it, so let’s first understand what is the meaning of EMI and what is its full form? – EMI Kya Hota Hai in Hindi?

EMI of Full Form Is Equated Monly Installment, it means to pay one installment every month from whom you have borrowed money. EMI Within this, you have to pay both the loan and the interest money together.

Whenever you buy different types of items or loans and it is expensive, you can repay your outstanding money in the form of EMI.

For example, if you take an education loan, which is taken only for studies, then you can use that money for your education or children’s education and gradually fill the loan.

Many people do things that are not necessary EMI But buy and then pay off only loan for whole life, however EMI is a great thing if you use it for essential things.

How does EMI work? – How EMI Works in Hindi?

Whenever you take a loan against EMI, you will get EMI within a stipulated time frame, for example if you 10,000 buy a smartphone and you 10 months In 5% According to the loan to be repaid, then your EMI is calculated in 2 ways.

  • Flat Interest Rate
  • Reducing Balance Interest Rate

Flat Interest Rate – Flat Interest Rate

In this, the interest is calculated on the basis of the initial loan taken by you, hence, the interest is same for all the months. Generally flat rate is applied for car loans.

The mathematical formula to calculate EMI for this method would be:

EMI = (Principal Amount + Interest) / In how many months will you repay the loan

EMI = (10,000 + 500)/10

So your EMI will be = Rs 1050

This means the EMI of the loan of your smartphone 1050 will be Rs.

Accordingly, the second formula is given below by which you can calculate EMI.

Reduction in Balance Interest Rate – Reducing Balance Interest Rate

In this, your interest is calculated on the basis of the outstanding amount every month, hence, the interest is different for different months.

The mathematical formula to calculate Reducing Balance Interest Rate EMI would be:

EMI , [P x R x (1+R)^N],[{(1+R)^N}-1]

A = How much EMI will you pay every month?

P = How much loan has been taken

r = monthly interest rate (annual interest rate/12)

n = In how many months will you repay the loan (number of months during the loan tenure)

If you want to calculate EMI amount, then you can use the above mentioned formula or you can easily calculate EMI using Online EMI Calculator.

Advantages & Disadvantages of EMI – Benefits of EMI in Hindi

Friends EMI There is such a system that if you use it properly then it can bring huge benefits for you.

Benefits of EMI

You can take advantage of EMI in a good way in two places:

  • education loan for studies
  • to cure a disease

Sometimes it happens that you do not have money for your studies or children’s education and you have to pay lakhs of rupees as fees, then for this you can take a loan from the bank and pay the installment as EMI. Huh.

If someone in your family suddenly falls ill and needs lakhs of rupees, then you can take a loan from any bank and repay that money as EMI installment.

Apart from this, take a loan on EMI only if you need money for some important work.

Disadvantages of EMI

Let us now also know about the disadvantages of EMI.

Long Term Loans: You remain in debt until your EMIs are exhausted.

More Payment: In EMI, you have to pay the principal amount and interest. eg. If you want to buy a smartwatch worth Rs 50,000, you will have to pay 2-3% extra as interest.

Penalty for skipping EMI: If you do not pay the EMI for any month, then you also have to pay a separate penalty and if you do this more often then your property can be confiscated.

What are EMI Finance Cards?

EMI Card is a pre-loaded card with a pre-approved loan. You can use this card to buy essentials. Bajaj Finserv offers an EMI Card using which you can buy essentials.

With Bajaj Finserv, you can shop for over 1 million products with the swipe of a card that can be used in over 13,000 cities.

How to buy a product from EMI?

If you buy any product online or offline and you want to pay in EMI i.e. installments, then you can use your EMI card or credit card You can buy goods on EMI using

So, to buy a certain product you need to keep something in mind.

Payment and EMI issues RBI and as of now you cannot use EMI using Debit Card. Although ICICI bank debit card But is the first bank to offer EMI. So if you are an ICICI Bank account holder, then only you can use your debit card for EMI payment.

If not, you can use your credit card for this. When you buy goods on EMI using a credit card, keep in mind that the limit of your credit card should be more than the goods you are buying.

If the credit limit is less than what you are buying, the transaction will not be accepted.

To buy a product on EMI:

Select the product, and proceed to check out, in the payment mode section click on EMI, there you will see different EMI plans from different banks, select the plan of your choice and enter the card details, and Proceed to make payment If the credit card limit is more than the amount purchased then your payment will be done.

What is No Cost EMI? – No Cost EMI in Hindi

when you No Cost EMI If you buy a product on this basis, then you do not have to pay any interest. While this may sound tempting, on the surface, you actually pay more. When you buy a product on the basis of No Cost EMI, then you do not get the benefit of discount.

For example, if you are buying a laptop, then you get many offers in it. 30% 40% Discount is also available but if you buy the laptop No Cost EMI If you choose the option, you do not get all those discounts and offers.

How to Calculate EMI?

There are 2 methods used to calculate EMI.

  • Flat Interest Rate
  • Reducing Balance Interest Rate

Flat Interest Rate – Flat Interest Rate

In this, the interest is calculated on the basis of the initial loan taken by you, hence, the interest is same for all the months. Generally flat rate is applied for car loans.

The mathematical formula to calculate EMI for this method would be:

EMI = (Principal Amount + Interest) / In how many months you will repay the loan

Reduction in Balance Interest Rate – Reducing Balance Interest Rate

In this, your interest is calculated on the basis of the outstanding amount every month, hence, the interest is different for different months.

The mathematical formula to calculate Reducing Balance Interest Rate EMI would be:

EMI = [P x R x (1+R)^N],[{(1+R)^N}-1]

A = How much EMI will you pay every month?

P = How much loan has been taken

r = monthly interest rate (annual interest rate/12)

n = In how many months will you repay the loan (number of months during the loan tenure)

If you want to calculate EMI amount, then you can use the above mentioned formula or you can easily calculate EMI using Online EMI Calculator.

While buying any product on EMI, keep in mind whether what you are buying is necessary for you, if it is not necessary then do not forcefully buy anything on EMI.

Many people take a loan of lakhs of rupees just because they need a new and big car only for the souk and then for many years they just go to pay the EMI of that loan, so all of you have to Meaning in Hindi It is very important to know.

Read also:

What does Debit Card mean? use, advantage, disadvantage

Credit Card Complete Information: Uses, Advantages & Disadvantages

We hope that after reading this blog post you will get your questions. What is EMI? (EMI Kya Hota HaiYou must have easily answered this.

FAQ

Q: What is EMI?

Ans: EMI of Full Form Is Equated Monly Installment, it means to pay one installment every month from whom you have borrowed money. EMI Within this, you have to pay both the loan and the interest money together.

Q: What is the full form of EMI?

Ans: EMI of Full Form Is Equated Monly Installment

Q: What are EMI Finance Cards?

Ans: EMI Card is a pre-loaded card with a pre-approved loan. You can use this card to buy essentials. Bajaj Finserve offers an EMI Card using which you can buy essentials.

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