Hi Friends,
1. Hi can anyone suggest me regarding The Calculation method of Reducing rate of interest & Flat Rate Of Interest?.
2. How They Are Calculated. Recently my freinds has taken loan whose emi is 41748/- for one year for loan of 453000/-. Bank is charging me 19% of interest on Reducing Rate Of Interest but i am paying around 12% from my pocket. can you suggest me whether this deal is ok.
Regards
Hi Sanjev
How many is this loan (i.e) your repayment term whether 48, 60 mths.
then we can find it out.
Regds
Balaji S.
Hi Balaji,
Its for 12Months.
Regards
now i come to your second ques. which is the best plan & why?
and the answer is reducing balance method is the best out of two under given situation b'coz at flat rate of interest it comes to Rs. 54360/- (i.e. 453000*12%) while under reducing rate of interest it comes to Rs. 47976/- (i.e. 41748*12-453000). which saves your Rs.6384/- under later option.
Now choice is yours.
Hi Naveen
I like to know how we need to use the formula in excel to calculate EMI
Regards,
Sathish
Hi Naveen,
Can you send me that spread sheet to my email address,
sathishrao_22 @ rediffmail.com
Thanks,
Sathish
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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