what is the emi for 60 lakhs: What is EMI? When to take EMI? When to stay away from EMI? How to take EMI and all the advantages and disadvantages of EMI? Today I will tell you 14 facts about I mean EMI. So if you have any interest in EMI or are thinking of taking EMI, don’t miss it. Let’s get started.
What does 0% EMI mean?
First of all, let’s say EMI is an elaboration of Equated Monthly Installment, which means that you will pay the money in one installment every month. Suppose you buy a product worth Rs. 60,000 in six-month installments, which means that you will have to pay Rs. 10,000 every month. If it is an EMI with 0% interest, this is the Equated EMI.
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I mean, is it a product in installments? In simple words, if you buy a product through installments, when should you take EMI and when should you not take it? My suggestion would be if you see that you can take EMI at 0% interest, they are offering it at 0% interest, then you can buy the product through EMI.
What is EMI interest?
But if you take a percentage in interest, then it may happen that you have to pay the product of 60,000 taka after six months. The total means that it will not be 10,000 per month, then it will be a little more. The interest will be added. Ultimately, it turns out that you purchased the product of 60,000 taka for 70,000, which means 10,000, but you got extra, which if you bought it instantly, you could have bought it for 60,000 taka. But because of the installment facility you took, you have to pay 10,000 taka more.
That’s why my suggestion is if it’s not possible for you to buy a product with this money at this time, then you should find out if there is 0% interest. If there is no 0% interest, if there is any percentage, why pay the extra money? If not, why not go for EMI? In that case, save some money and then buy the product without EMI with this money at this time. This is my personal suggestion.
What are the benefits of EMI?
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Do I have to pay the money all at once? Suppose I don’t have cash with me now. I have a credit card. If I purchase the product with a credit card now, suppose I purchase a product worth 60,000 taka, I will have to pay 60,000 taka to the bank in the next billing cycle because this 60,000 taka will come on my credit card bill. If I don’t pay, I will have to pay interest. Yes, and if I purchase the product through EMI in six-month EMI, then in the next billing cycle, I will only get a bill of 10,000 taka. I only have to pay 10,000 taka. But I don’t have to pay the remaining 50,000 taka next month. I can only pay 10,000 taka every month.
What are the difficulties in general?
The biggest disadvantage of EMI is that if interest is added, I mean a product worth 60 thousand taka, you have to buy it for 70 thousand taka. This is a disadvantage if the interest rate is added and it is not 0% interest. Apart from that, there is another disadvantage. Like if you do a six-month EMI, you have to make the payment every month but on time. If for some reason your payment is missed in any month, you have to pay interest. Ultimately, you will be fined. You will see that your credit card bill has increased.
Interest is coming on the credit card bill, so this is also a problem, it means you have to keep in mind that you have to pay it every month. If you had bought it at one time, there was no reason to get stressed anymore. But since you will make the payment every month through EMI, you have to keep in mind that you will get a bill and that bill will have to be paid on time. So this is a kind of problem.
What exactly is a credit card?
what is the emi for 60 lakhs: If you have a credit card, you can take EMI. You can take it with confidence. But if you don’t have a credit card, you can’t take EMI because debit cards don’t give EMI directly. Now, why don’t you give it or why do EMIs only give EMI with credit cards? I’ll explain this a little. Many people confuse this thing. Many people think that brother, I have money in my bank account. Can I take EMI? Actually, EMI has nothing to do with bank accounts. EMI has nothing to do with credit cards. The relationship between EMI and credit cards is with credit cards. And credit cards are credit limits. The bank gives you a credit limit. It’s the bank’s money, not the money you have deposited in your bank account. The money you spend with the card is a debit card, not a credit card, and a credit card is the money that the bank will let you spend.
You will be given a credit limit, you can spend according to that limit and you have to make the payment to the bank on time. Only then can you spend money with this credit card. For example, let’s say your credit limit is one lakh taka. You have taken a credit card. The bank will give you a loan of one lakh taka on that credit card. You can spend a maximum of one lakh taka with this card and you have to make the payment again on time. You will have a bill creation date. There will be a payment date. They will tell you when you take the credit card. If you pay it on time, you will not get any penalty.
How EMI works
EMI Suppose you buy a product worth 60000 rupees through EMI. You also have a credit card. So you make the payment through credit card. So the credit limit of your credit card which was 1 lakh rupees is the bank’s money. They fix it from 1 lakh to 60000. That means the bank employee will block it. Your credit limit will decrease then it will become 40000 to 60000. They will block this 60000.
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This is for your EMI, you pay your money to the company you bought it from, they get it right away, but the bank will take the money from you every month, so this 60000 taka has reduced your credit limit, this is because of this, now how much money will your bill come next month, you will not have to pay 60000 taka, you will just have to pay 10000 taka, this is because you paid 10000 taka, next month you will have a block of 50000 taka, ৳10000 you have paid, ৳10000 will run out of that block, that means next month your credit limit has become 50000 again, that is 50000
There is another 50000 block left. Next month, another 10000 bill will come. So you will pay 10000 again. You will get another 10000 from that block. I mean, your credit limit will increase to 60000 taka again and your block will be 40000 taka. In this way, you will keep paying 10000 taka every month. When the complete payment is done, you will have no block and your credit limit will be 1 lakh taka again.